Go to main pageCommunityForumsBusinessIMF expects Russia's GDP to grow by 7% in 2007. What's needed to maintain such a rate of growth or even to surpass it?
IMF expects Russia's GDP to grow by 7% in 2007. What's needed to maintain such a rate of growth or even to surpass it?
Philip27 July, 2007, 14:29
One way to reduce the inflationary pressures of too much cash is for Russia to encourage its own companies to invest abroad. Russia still has a substantial state owned manufacturing sector. Most of this is in poor shape with obsolete products and processes. These firms could be given access to funds to buy overseas assets to renew technology and to buy channels to market. The money sent abroad reduces inflation but builds up resources for the future.
Russia also has a large science base and almost no technology transfer internally and almost no international patents. For example, the field of Optical Coherence Tomography invented in Saratov was lost to Russia. The state could provide money to secure international patents for Russian organisations and enterprises. This is sending money abroad to reduce inflation but creating sustainable assets to produce growth in the future. The same might apply to other forms of intellectual property. I am biased. I could assist in this.
Russia has the largest potential for Successful industrialization. In my view, for centuries, this land mass of Russia/ Eurasia has been a formidable international political player, but has performed much below its actual potential as a major international Economic force, due to various reasons. Chief among them being its rather inward looking stance and its FORCED isolation by the various POWERS internationally, who want to continue their financial hegemony.Today, however Russia stands on the threshold of gaining its true financial potential and 7% is too low, but at least its better than than 6% and who knows...??
