I am pleased to see a significant representation from Russia. It is important that Russia connects and participates with everyone else. At a session on Russia that I attended, there was a clear consensus that one of the biggest challenges facing the economy is to stimulate competition through growth in the SME (small and medium-sized enterprise) sector. The Russian economy is dominated by large state-owned and private companies, but we need more SMEs to drive competition and as a result productivity and technological advancement. One of the impediments to SME growth in Russia is the amount of regulation and associated bureaucracy as well as government intervention in a variety of sectors. I hope this can be addressed over time so that a more dynamic grass-roots economy can emerge.
Inevitably, there has been a lot of discussion here about the eurozone. This is of significance to Russia too because much of the country’s export trade is to eurozone countries. I think there is an understanding that there is no quick fix. Long term, sustainable solutions are needed such as pension and social reforms. Yesterday German Chancellor Angela Merkel outlined her vision that in 20 years’ time Europe would be a completely free zone where people could move around unhindered and, for example, draw their pension from any country. It was a bold, almost idealistic vision – perhaps in keeping with the spirit of Davos.