“A Safety Cushion” or a strategic blunder?

Resumo

An attempt is made to assess critically the concept of the creation of the Stabilization (Oil and Gas) Fund in the conditions of Russia of the mid-2000s. As a backup (insurance) tool, the author holds, the fund is ineffective in solving its key tasks—to support budget balance and to restrain inflation. The artificial withdrawal of a substantial part of the oil and gas rent from the budget comes into sharp conflict with the goals of development. The conclusion is made that the creation of the fund for subsequent use of the accumulated means primarily as a “safety cushion” was, to all appearances, a strategic blunder.