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#7 - JRL 9039 - JRL Home
TO DOUBLE GDP, WE NEED TO DEVELOP SMALL AND MEDIUM BUSINESS

MOSCOW, January 28 (RIA Novosti) - "Without the development of small and medium business, this task (the doubling of the GDP) is impossible," announced Russian Economic Development Minister German Gref at the Federation Council meeting on the strategy of social and economic development of Russia.

According to the minister, the development of basic industry branches, which play a key role in the economic growth, mostly depends on the expansion of small and medium business.

"It will give a respective boost to the development of the overall development of Russian economy," he added.

The minister also noted that the current statistics, unfortunately, do not account to a full extent for the contribution of small and medium business into the growth of basic industry branches.

He stated that the 2005 state budget allocates 1.5 billion rubles ($1 equals 28 rubles) for the support of small and medium business. At present, the government, together with the Chamber of Commerce and Industry and other business organizations, has prepared a draft of a joint resolution that envisions five mechanisms of support for small and medium business in Russia, Mr. Gref announced.

"In 2005, all these mechanisms must be implemented and tested. The most effective among those must be developed in the future," Mr. Gref concluded.