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Russian PM says long-term stagnation risk is global problem

Politically motivated barriers in the economy generate world tensions, the Russian premier has noted
Russian Prime Minister Dmitry Medvedev Valery Sharifulin/TASS
Russian Prime Minister Dmitry Medvedev
© Valery Sharifulin/TASS

MOSCOW, January 12. /TASS/. Russian Prime Minister Dmitry Medvedev has expressed confidence that the Group of Seven and the Group of Eight have been successfully replaced by the G20.

"The G20 format actually replaced the G7 and G8 groups. It is clear what this Group of Seven means without other major economies. Nothing!", he said speaking at the Gaidar Forum. 

According to Medvedev, "Russia does not want and, of course, will not be isolated." "We have no intention of ignoring global trends, our task is using them to solve our problems to the maximum extent," the prime minister stressed. He recalled remarks by first Prime Minister of Singapore, Lee Kuan Yew, who said that a country carrying out reforms should seek its own niche in the world economy. "So, we are determined to develop international trade, establish our own value chains and be more actively involved in international business alliances and agreements," the Russian premier said.

Barriers for the world economy 

The long-term stagnation risk is a common problem for the whole global economy, the Russian politician believes: 

Activities of Russian authorities in the economy are closely interrelated with the global economic agenda, "even despite the specificity of the current situation for Russia," Medvedev said. "Obviously there is one common problem <…> the risk of long-term stagnation" he said. "It has already become clear that normal growth rates will not recover on account of monetary and budget policies only; major structural reforms are needed."

"I don’t mean only our country. I mean the general world situation," the Russian premier said.

Dmitry Medvedev believes that politically motivated barriers in the economy generate world tensions. "A use-of-force approach, sanctions that always run counter to economic considerations - I’m now speaking not about political motives but about the fact that they always harm the economy - politically motivated barriers for mutually advantageous projects constantly generate tension in the world today," Medvedev said

"One of the important features of the modern economy that concerns one and all is the sharp politicization of international economic relations. There’s no getting away from it," Medvedev told the Gaidar Economic Forum in Moscow on Thursday. "Policies from the position of strength and sanctions that always run counter to economic considerations - what I am talking about is not political motives but their imminent harm to the economy - these politically motivated barriers to mutually beneficial projects today generate lasting tensions around the world." 

Russia's economic growth

The shortage of investments and the credit crunch are impeding Russia’s economic growth, the Russian premier has noted. 

"Of course, there is a whole number of restrictions that do not allow achieving acceptable growth rates. Incidentally, they are well known to the majority of various developing countries. First of all, this is the shortage of investments and the long drawn-out credit crunch," the premier said.

"It is necessary to constantly produce an upgrade of technologies and professional qualifications," Medvedev said. He also added that the risk of growing technological gap in Russia is one of the most serious challenges for the national economy:

"I believe that the increase of technological backwardness in our country is one of the most serious challenges, perhaps the most serious challenge our economy faces. I think that this requires consideration and decision making." 

The Russian government is drafting a plan of action to speed up economic growth in the country to the rates above the average global level:

"As you know the government is now preparing a plan of action to speed up economic growth to reach the rates above the global average," Medvedev said, adding though that the average global growth rates could be not very high.