Advice people laugh at department

ChrisD(RJ) chrisd at russiajournal.com
Thu Aug 8 03:27:57 PDT 2002


Russia must accelerate restructuring - IMF

MOSCOW. Aug 7 (Interfax) - Russia must accelerate reforms in the banking sector, natural monopolies and civil service if it is to ensure a stable, fast rate of economic growth, Paul Thomsen, the chief of the International Monetary Fund's mission in Russia, told Interfax.

Progress in these economic sectors is a must for drawing investment to small and medium-sized businesses, he said.

Thomsen added that structural reforms imply curtailing excessive state interference in the economy.

The experience of other transitional economies suggest that stable and high rates of economic growth depend on the availability of a dynamic sector

of small and medium-sized businesses. Russia has not shaped this sector so far, and the level of investment outside the energy sector remains low, Thomsen said.

He went on to say that Russia remains highly dependent on the few state companies whose earnings, in turn, depend on world prices for raw materials.

If this tendency persists, and even if prices for oil remain high, Russia's economic growth will inevitably go down as these companies approach

their maximum capacity.



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