Source Pravda.Ru

Most of All, Russia Produces and Consumes Food and Fuel - 25 December, 2002 - News

And German Gref is satisfied with this situation
The head of Economical Development Ministry, German Gref spoke yesterday about the results of the year 2002. And he found himself being very satisfied with the results. According to him, the year was very successful as for the economical situation in the country. While the hunger-striking air traffic controllers hardly would agree with German Gref. Though, Gref seems to have completely forgotten to ask their opinion. While the air traffic controllers themselves have no time to declare it to German Gref. They accuse the leadership of State Corporation of Air Traffic Organization of non-proper use of state means, which is the reason why the state does not have money to raise their salary.

Though, neglecting the unclear situation in Russian civil aviation, the German Gref view on Russian economy is “everything is OK.” The minister reported Tuesday to Russian media the economy growth would make 4 percent by the end of the year. While this (if not to compare in essence) is more than in the US and Europe. However, it is less than in China. Though, living standard in China is lower, where there are enough pretenders for a vacancy with $ 50,00 month salary. So, the main thing is to correctly compare.

As for absolute figures, within 11 months of 2002, non-ferrous metallurgy growth made, according to the minister, 7.7 percent, while that one of food and fuel industries – 6.3 percent. According to Gref, the growth of these industries secures 70 percent of the whole economy growth of the country. Is it strange? Not at all. Whatever could happen in the country, people cannot stop eating and heating their houses. German Gref probably finds these results to be acceptable. If some machine manufacture does not occupy the first place, it is OK with food and crude oil. All the more that the total results play in favour of the government, which was recently criticized by the President. According to the year results, gross domestic product has grown by 4-4.1 percent instead of planned 3.5 percent, German Gref reported to media.

General commodity circulation, according to the year results, will grow by 9 percent, which objectively witnesses the fact of the citizens’ prosperity growth. Consumers of the whole world stop buying, while Russian citizens still buy. So, foreign mass media do not stop writing about real consumption boom in Russia.

According to German Gref, real money income growth, according to the year results, will make 8.5-9 percent. It is almost as much as the commodity circulation growth. While such prosperity of the citizens, according to the minister, makes a serious contribution to the gross domestic product growth.

So, what is the reason of these good economical showings in Russia? Is it probably that the Russian government has done the impossible and an economical boom should be expected in Russia? German Gref does not want to keep back the main achievements belongs to the government strategists. The minister says the main stimulating factor of the gross domestic product growth is a lucky external economic situation which secures, according to the government information, 50 percent of the gross domestic product growth. In other words, thanks to US President George Bush who took offence at oil dictator Saddam Husain! This was the reason, why world oil markets started to seriously storm, oil prices rose, while the Russian government, so to say, took advantage of the situation. But then, its activity looks properly today. Or would the minister be so proud?

However President Putin blamed yesterday the government with Russian citizens not feeling the fruits of its activity. Though, the President is just a politician. So, he should take care of the citizens’ prosperity. While the government takes care of the economy development. And that are two different things. This year, the government worked at the economy situation, next year it will occupy itself with the citizens’ prosperity. Economist state Russian citizens keep in their socks 20 to 60 billion dollars, while the economy makes no profit on this money. Is it all right? But it must be all right.

Kira Poznakhirko PRAVDA.Ru

Translated by Vera Solovieva

Read the original in Russian: http://economics.pravda.ru/economics/2002/7/21/58/4797_Gref.html