Page 9 - RusRPTOct19

2.5 Russia’s civil service to be reformed in 2020, numbers slashed
Russia's Finance Ministry is proposing a public service reform that would massively cut the number of state employees as of 2020, First Deputy Finance Ministry Tatyana Nesterenko told RIA Novosti on September 22.
The reform is proposed in two stages, cutting the staff of the federal government by 5% in 2020 and by 15% in 2021 at the first stage. The second stage would see regional branches of ministries reconfigured into independent civil service units.
The government will thus have to reform the state civil service system, changing the organisation of employment, pay, and motivation. "The economy [of state funds] is not the goal of the reform, obviously. But the saved funds will be used to increase the pay of civil servants," Nesterenko is quoted as saying.
The civil service has ballooned under president Vladimir Putin. The reform is part of the ongoing structural reforms carried out by the liberal fraction in the government that is trying to revamp the Russian economy and make it more efficient.
2.6 Russia’s low productivity problem
Russia is one of the least productive moderately rich countries in the world, ranking 39th out of the 42 monitored by the Organisation for Economic Cooperation and Development (OECD). In cash terms, Russia produces $24.61 in GDP for every hour worked, half the $48.15 OECD average.
Productivity is one of the most-watched indicators of an economy’s long-term prospects, measuring how much GDP is produced for every hour worked. As Putin highlighted, higher productivity means higher wages, since the more value workers create, the more they can be paid.
The latest Russian attempt to solve its low productivity problem is its ambitious National Projects public spending programme. Alongside a string of new infrastructure construction, the state has promised to throw 52 billion rubles ($800 million) worth of cheap loans, export promotion and training courses specifically at the productivity issue.
9 RUSSIA Country Report October 2019 ww.intellinews.com