Vladimir Yasinsky: Insufficient investment and human capital erosion are common problems in the post-Soviet countries
Almaty, 28 February 2014. Insufficient investment and human capital erosion are common problems in the post-Soviet countries. Vladimir Yasinsky, Member of the Management Board at Eurasian Development Bank (EDB) and Managing Director for Research, stated this today at the World Bank’s session titled Diversified Development: Making the Most of Natural Resources in Eurasia at the Krasnoyarsk Economic Forum.
“Creating effective instruments is the most difficult challenge in the process of transition from one economic system to another,” said Vladimir Yasinsky. “For post-Soviet countries this process is complicated by the fact that it needs to be done in a historically short period.”
According to Mr Yasinsky, “these problems and their possible solutions should not hinder the efforts our countries make to diversify their economies by stimulating sectors that generate high added value; however market signals should not be distorted at the same time.”
The discussion during the session focused on the report Diversified Development: Making the Most of Natural Resources in Eurasia prepared by the World Bank in cooperation with EDB and published in February. Vladimir Yasinsky believes that, “this is another step in the development of cooperation between Eurasian Development Bank and the World Bank.”
The authors of the report state that natural wealth has made it possible for the region’s countries to ensure an improvement in living standards for a significant portion of the population and to significantly advance their economies. They also point out that the countries with abundant natural resources need to ensure the proper management of incomes derived from their use, invest the generated revenue in the accumulation of physical and human capital and improve economic institutes, infrastructure and the educational system.
“Diversification is a promising process in improving the efficiency and competitiveness of our economies,” said Vladimir Yasinsky. “It is important to emphasise that the two approaches discussed during the session — the diversification of sectors and the diversification of national assets — should not be deemed as contradictory or mutually exclusive.”
Additional Information
Eurasian Development Bank is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth, and the expansion of mutual trade and other economic ties in its member states. EDB’s charter capital exceeds US $1.5 billion. The member states of the Bank are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, and the Republic of Tajikistan.
Read more about EDB at https://www.eabr.org