ECONOMIC MINISTER DOES NOT FEAR CRITICISM, LOSS OF POST

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MOSCOW, February 7 (RIA Novosti) - Economic Development and Trade Minister German Gref thinks that Russia's GDP cannot be doubled before 2012.

"In our estimates, the GDP cannot increase two times before 2012 or 2013", he told the German magazine Der Spiegel.

Although the rate of growth in 2004 was 7.1 percent, the Russian economy should be diversified, he said. "Our average-term program, which I recently presented to the government, has this in view", Mr.Gref said.

"I'm criticized for failing to gain the rate of growth required for reaching the goal (doubling the GDP) by 2010. It is across the lines of all our scenarios. If anyone knows how to do it, I'd gladly cede the post", Mr.Gref said.

The economic development minister thinks "wrong" the increase of the state's share in the competitive economic sectors.

"The state is not fit for doing business. Private business in our country has proved to be efficient. Productivity is increasing in the market segments where the state has paved way for competition", he said.

In the opinion of Mr.Gref, the state should concentrate on creating for the people understandable rules and terms of game, to be followed by everybody.

The 2.5-percent inflation in January is rather the effect of greater tariffs in regions, Mr.Gref believes.

"In order to collect money to pay for the cancelled natural benefits regions have begun to increase tariffs", Mr.Gref said. "This means that it (the inflation level in January) is not a result of monetization".

Economic effects from the benefits-for-money swap will come later, he said. "Such things do not happen: paying money today and getting inflation tomorrow. The effect will tell later", the minister said.

In his opinion, one mistake of the reform and one cause for popular disgruntlement is that not all regions have replaced benefits by money.

"Sixteen subjects of the federation (out of 89) have retained the old system. This is an additional irritant", Mr.Gref said. Besides, due explanatory work has not been done before the replacement of benefits by money, he said.

"It should be preceded by good explanatory work as before. Now, panic has broken out and the battle has been lost before it began", the economic development minister believes.

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