A potential of consumer demand within a framework of structural transformation of Russian economy

The present paper examines a problem of consumer demand potential within a context of ongoing struc-tural shifts in Russian economy. It discusses on the structural shifts in the context of passage from demand-side to supply-side economy. It further demonstrates that such passage indicates rise of priority of supply-side instruments of economy policy as opposed to changing growth model of Russian economy or shifting paradigm of its economic policy. The paper argues on thesis of retaining aggregate demand as an incentive for economic growth along with admitting the need to increase the rate of saving and to dramatically increase investments. It defines a meaning of potential, quantity and quality of consumer demand and analyzes the dynamics of basic conditions and parameters of consumer demand, which allows to conclude on its weakness, or deficiency. Poverty of the population is identified as a factor affecting the quality of consumer demand. The paper shows that poverty underlies the well-known paradox of Russian consumption as one of the qualitative indicators of its structural imbalances. It tests the hypothesis that in nowadays conditions the potential of consumer demand is determined by increasing its quality (structure) by reducing the level of poverty of the population.