Shuvalov said the Kremlin and the Cabinet are divided on how to double Russia's GDP and speed up economic growth. Some in the executive branch insist that funds should be channeled primarily into large-scale industrial projects, while others argue that investment in human development programs will yield heftier dividends, he said.
Authorities are expected to settle their differences soon and decide on a plan, Shuvalov said, adding that both sides' arguments would be taken into account.
Asked by a reporter where money for human development could be taken from, Shuvalov suggested that treasury funds be put toward human development as long as the country was running a budget surplus. If there is not enough money in the coffers, an additional amount could be borrowed from the stabilization fund or the investment fund, he said.
Shuvalov said the improvement of the quality of life for the public is the key to the nation's economic success. "Unless favorable living conditions are created for Russia's citizens, in areas having to do with creature comforts and with the opportunity to develop one's intellectual potential, Russia will have no future," he said.
Nowadays, the Russian public enjoy "very limited resources for the development of their personal potentialities," he said.
Shuvalov said the current situation in public security, health and education leaves much to be desired and called for urgent reform.
"If it doesn't come within the next ten to fifteen years, they [the healthcare and education sectors] will become absolutely unfit to meet the needs of Russia's citizens," he warned.
Shuvalov said the situation in Russia's public health sector could be no worse than it is now. He said that he personally is afraid of going for treatment to even the hospital believed to be the nation's best.
