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Putin admits government does not do enough to support small, medium business

Moscow, 5 June: Medium and small businesses are very important components of any economy, but their importance should not be overestimated, and big business should not be lost sight of, Russian President Vladimir Putin believes. He believes that "there is no need to make a fetish out of the problem" of medium and small business. Putin said this at a meeting with finalists of the all-Russian contest of students on Thursday [5 June].

Putin said that those participating in small and medium businesses constitute the bulk of taxpayers in industrialized countries, and economic stability depends on the degree in which small and medium business is developed.

Meanwhile, "in many areas, particularly in hi-tech areas, medium and small businesses spring up on the basis of large, solid firms into which vast funds have been invested", the president said. Therefore, it is hard to say what is more important.

The president said the government does not work hard enough to support small and medium business in Russia. "The government tries to do something but is not successful enough so far," he said. The president believes "red tape and corruption is the first and foremost obstacle to this". Laws are being adopted but they "either do not work or their effectiveness is dissipated".

Putin said the explanation to this is "insufficient development of the institutes of democracy" in Russia. "When political parties, nongovernmental organizations begin to work in full volume, the state will in the natural way be gradually abandoning the area of economic regulation, where it is present but is a hindrance rather than help, while officials draw rent capitalizing on their status", the president believes.

Putin came out for the need to redistribute revenues in the area of hydrocarbon raw materials extraction. "The revenues must be redistributed in a fairer way," he said.

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