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Putin: non-market economy performed well in the 1920-30s, then resulted in USSR collapse

ST PETERSBURG, June 14 (RIA Novosti) - The government should be able to gauge the way the global economy and the country are evolving to set the optimum course of development," Vladimir Putin said. The Russian president cited the 1920s and '30s as an example, with the United States being stricken by the Great Depression and the Soviet Union's planned economy making good progress.

"That was the time when the Soviet Union's industrial might was being forged," the president noted. However, later, with innovative development becoming more effective and the world's economy becoming global, the non-market economy "drove the USSR to the collapse", as Putin put it.

"At different stages of world economic development, types of management varied in effectiveness," the Russian president said, summing up the discussion on choosing an economic development model during the international economic forum at St. Petersburg.

The issue is important not only to Russia but to other countries as well, he emphasized.

The discussion touched upon the liberal and paternalist development models, with the latter providing for a more proactive governmental involvement in economy.

Vladimir Putin said that sustaining the Russian economy's high growth rate remained the priority.

"Our primary mission remains unchanged, boiling down to ensuring a high economic growth rate in Russia. This is impossible without integrating the country with the global economy, but this should be done on the precondition that this state's sovereignty is preserved inviolable," the Russian president said.

During the discussion, the participants preferred liberal economy, though at the same time spoke of the need of governmental support in individual breakthrough fields, i.e. the defense, nuclear, space and computer software industries.