Russia

Well researched and penetrating though it is, the report on Russia prepared by McKinsey, the renowned consultants, is no more than a wish-list of foreign investors in Russia, actual and potential. Far from unlocking the forces of growth, the report's recommendations would lead to further underdevelopment and the enormous talents of the Russian people would be effectively bottled up for long years.

The Russian parliament last month approved the Land Code Bill, allowing limited private ownership of land for agriculture. The bill has strong dissenters, including the communist and agrarian parties, who have raised several important objections to the private ownership of agricultural land. Russia has to promote private ownership of land if it is to achieve its objectives of establishing a market economy and lure greater investment in agriculture. However, the government needs to ensure that such privatisation is not misused, benefiting a few at the cost of the larger interests of the country

Russia, in the beginning of 2001, finds itself in danger of defaulting on its debt repayments to the Paris Club. One opinion believes that the Russian economy is in dire straits and in no position to repay. On the contrary, the west - including Russia's main creditor, Germany and other influential economists and rating agencies believe that the issue has been mismanaged by the Russian authorities. Not only is there lack of coordination among different branches of the Russian government, it has also been unable to contain capital flight and money laundering of funds that are desperately needed for ecnomic development.