#3 - JRL 2006-137 - JRL Home
Medvedev Tells Economic Forum of Plans to Achieve Leading Position

ST. PETERSBURG. June 13 (Interfax) - Russia is concentrating its efforts on achieving a leading position in the world in those sectors of the economy where it has a concrete advantage, First Deputy Prime Minister Dmitry Medvedev said at the St. Petersburg International Economic Forum on Tuesday.

"We are concentrating our efforts on achieving leading positions in several economic sectors," he said.

Russia should not try to compete "in those sectors where it can't compete, such as in the mass production of cheap goods," Medvedev said.

He listed a number of concrete advantages that Russia historically has. First, "we should use creative people," he said. Russia could become on the world's intellectual centers, he said.

Russia has a key advantage in raw materials, Medvedev said. Experts estimate Russia has 65% of the world's reserves of apatite, 35% of its gas reserves, approximately 30% of its iron, nickel and tin reserves, 14% of uranium and 13% of all oil reserves, Medvedev said. Russia isn't planning to reduce energy exports, but will concentrate on refining crude, he said.

Russia's third advantage is its "unique geopolitical location," Medvedev said. Transport corridors should be set up and developed, he said.

Russia will concentrate on establishing large government corporations and support them in exporting their products, Medvedev said. These state corporations will not be monopolies on the Russian market and will compete with Western companies, he said.

Medvedev also spoke in favor of removing barriers to the movement of goods across borders. The import of hi-tech equipment to Russia needs to be made easier, he said.

A mobile innovative infrastructure needs to be set up and conditions need to be created to stimulate worker productivity and energy efficiency, he said.

"Long-term investment in people" and achieving a high quality of life are the chief and key factors, Medvedev said. The social sphere needs to be developed and additional government spending on these goals is 0.6% of GDP a year. Total budget spending on the social sector is 9% of GDP, or 30% of all budget spending, he said.