Alfa Bank President Peter Aven says "Russia has to use the achieved macroeconomic stability to continue reforms, promoting employment in the small and medium size business"
19 Apr 2004
Speaking at the 7th Annual Russian Economic Forum in London, 18-20 April 2004, Peter Aven, the former Minister of Foreign Economic Relations of Russia, reviewed the Russian Economic Growth with a question: Glass Half Empty or Half Full?
"While Russia achieved a very high 7.3% growth rate in 2003, upon closer inspection this figure does not seem as impressive. Countries such as Ukraine and China, which are negatively affected by high commodity prices, managed to post even higher growth rates."
Thus, in order to convince investors that in terms of Russia's investment climate , stimulating private business activity must be a key priority for state policy in the future. Banking sector in Russia should play an important role in promoting growth. Granted, the assets to GDP ratio reached 42% by 2004, but this is still below the level of developed countries. Russian banks contribute no more than 5% of total fixed investment.
Barriers to the creation and profitability of Russian small businesses are another area of concern to Aven. "The state must stimulate small and mid-sized enterprises as well as the banking sector to create private sector employment and boost final consumption. Without these steps, investors will one day conclude that in terms of Russia's investment climate
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