‘Russia among top five in terms of GDP by 2020’

By RIA Novosti

St. Petersburg : Russian Deputy Prime Minister Saturday set the goal of making the country one of the five largest economies in terms of GDP by 2020.


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In his report on the national economic strategy until 2020 – which opened the 11th economic forum in St. Petersburg – Sergei Ivanov, seen by many as a possible presidential successor after 2008, said the economic goal could be achieved through a liberal economic policy based on high technologies, broader and transparent investment, and high competitiveness.

In the past few years, Russia's GDP has been exceeding six percent.

"GDP per capita by consumer spending parity will be around $30,000 in 2005 prices (by 2020), compared to the current $12,000," Ivanov forecasted.

Ivanov said Russia was ahead of the majority of emerging economies in terms of foreign investment. As an example, the official said accumulated foreign investment in 2006 topped $150 billion.

"In the first quarter of 2007, we received nearly $10 billion in direct foreign investment," he said.

Capital inflow is expected to reach $60 billion in the first half of this year, he said, adding that the figure exceeded indicators in other countries with transitional economy.

"We are interested in creating a favorable environment for foreign investors," Ivanov said. "It means a transparent investment infrastructure, and further development of the stock market and the banking sector."

"I am convinced that Russia is capable of becoming a leading world innovation center," he said. "We will set up a special commission to promote breakthrough innovative projects."

Special technological and economic zones will be formed to speed up development in the area, the first deputy premier said, but added that relevant professional training was also required to achieve the goal.

He called for overhauling the education system by applying foreign experience, and setting up business schools and government administration colleges that would be up to international standards.

Ivanov also said Russia must form a society based on information technologies. "It is not an abstract term," he said. "IT technologies must become part of everyday life."

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