MOSCOW, June 29 (RIA Novosti) - Finance Minister Alexei Kudrin said Wednesday it was possible to double GDP by 2010 if a series of crucial decisions were made and relevant reforms were pursued.
"The growth rates seen in the economy in the past five years and required for doubling GDP are achievable, if a series of crucial decisions and reforms are implemented," the minister said at a meeting with major Western investors, according to a news release on the Finance Ministry's Web site.
According to Kudrin, the prerequisites for achieving the objective are the approval of a reform concept for the natural gas sector, and the completion of the administrative, judicial and housing reforms.
He said completing these and other essential reforms, given lower inflation and stronger ruble, could become a true engine for economic growth. "International experience has shown that the economic growth rate is higher in those countries where governments are quicker to implement institutional and structural reforms, and regulate their spending," he said.
Earlier this week, German Gref, the minister of economic development and trade, told the Cabinet that GDP could not be doubled by 2010. He advocated economic diversification and improving the investment climate. Gref spoke against basing economic growth on hydrocarbon production and seeking extensive growth at all costs.
In his state of the nation address to the Federal Assembly (parliament) in 2003, President Vladimir Putin set the goal of doubling GDP by 2012, with 2002 indicators as the starting point. The president then said the deadline could be moved to 2010 if economic growth rates were maintained at the current level. This ambitious plan requires an average annual GDP growth rate of 7.2% in the former case, and 9% in the latter.
GDP growth was 4.7% in 2002, 7.3% in 2003, and 7.1% in 2004. According to the Economic Development and Trade Ministry, the rate will be 5.8% this year.
