Nikolai Vardul
The word "agent", which has many positive and negative connotations, usually implies some notable plot twists.
There are legal, undercover and paid agents, as well as those working for ideological reasons. The so-called agents of influence are not always aware of their status.
Some agents, including currency control agents, have nothing to do with James Bond-style activity or secret services. Under the currency regulation and currency control law, all banks having the right to conduct currency operations receive the status of currency control agents.
The Government and the Central Bank of Russia have the status of currency control bodies. Although private banks are not directly subordinate to them, the Government and the Central Bank exercise currency control over their activities.
Figuratively speaking, agents working for any service are not directly affiliated with it. However, currency control bodies oversee currency control agents to a considerable extent.
Agency networks are expanding as the Government steps up efforts to fight the present global financial crisis. Prime Minister Vladimir Putin explained this to Alfa Bank CEO Pyotr Aven in Novosibirsk.
Putin's statements were absolutely logical. Any bank borrowing unsecured loans from Vnesheconombank or the Central Bank of Russia loses its commercial bank status and becomes in effect a government agent.
"This is why your subsequent actions on the inter-bank market must be linked with specific terms for receiving state funding. You cannot mark up interest rates," Putin told Aven, who did not object since those who pay, call the tune.
In effect, the state takes a more active part in economic activity while expanding the financial rescue service's sphere of operations and while providing subsidised loans and tax breaks to hard-pressed companies. However, specific criteria for choosing such companies remain unclear.
Apart from directly controlling some stock investors, the state expands its agency network.
It appears that there is no alternative to this current trend. "Economic boom and bust imply capitalism and socialism, respectively," said former Finance Minister Alexander Livshits.
In my opinion, this rule could be applied with many exceptions during the pre-crisis Russian economic growth, if the word "socialism" is appropriate here. At any rate, the duration of government control is an important issue.
Obviously, we must put out a fire, including the current crisis, without violating the law. But we must also assess post-crisis developments. Livshits is right in saying that acceptable anti-crisis measures may prove absolutely ineffective later on.
