Kasyanov on new principles of Russia's economic policy

Russia's Premier Mikhail Kasyanov thinks that economic stability assigns Russia to a new task of meeting new principles of economic policy.

The Russian government is bound to effect structural changes in economic sectors, Kasyanov explained as he addressed the Petersburg Economic Forum on Wednesday. According to his words, it is vitally important to form clearly defined, efficient mechanisms of such reforms.

Kasyanov said the government already had concrete plans how to effect reforms in various economic sectors, all of them based on the principle raising productivity of labor and competitiveness of Russian economy.

The premier admitted that the ineffective structure of Russian economy was changing very slowly, mostly because of administrative barriers. He said it was extremely important to reduce the influence the state has on the country's economy and "cancel everything that restricts business activity." According to Kasyanov, it is essential to achieve "good quality" in the first place. Otherwise, the country will fail to achieve economic growth -- moreover, it will "collapse in the near future." Russia still underuses its intellectual potential and remaining an "intellectual donor" for the rest of the world, added Kasyanov. Besides, it does not know how to put its raw materials and economic potential to good use, he concluded.