Economic progress closely depends on private investment. The government may encourage private persons to invest, and may harass them and shoo them off, just as well. What Russia has now is a bizarre situation when the government passes promising laws, making just the opposite moves at the same time. These crying contradictions pace down economic progress and impede investment, warned Mr. Sharonov.
What Russia has now is a presumption of guilt-almost everyone expects himself and his partners or competitors blacklisted any day. This is certainly a stifling atmosphere. It makes one think not of where to invest but where and how to hide his money. The developments rule out high economic growth rates. If things go on that way, the rate may shrink to 3-4 per cent instead of reaching a desired 7 per cent or more-the pace Russia needs to double its gross domestic product, pointed out the apprehensive deputy minister.
