Russia to become developed state in 7 years' - report
2/26/2013 10:52:36 AM
Ironically the research argues that the country’s problems, such as a declining population, will become the catalysts for these changes and will actually drive the country to improvement in internal consumption.

“By the year 2020, Russia will turn into a developed country thanks mainly to its demographic problems,”the research by Vladimir Osakovsky of Bank of America Merrill Lynch suggests.

The Russian Ministry of Economic Development also supported this concept, Finmarket.ru reports. Economists believe that scarce human resources will force employers to compete for qualified workers. Hence higher salaries will boost internal consumption.

Experts of the Organisation for Economic Co-operation and Development however have disagreed with such a notion.

According to analysts of the Russian Higher School of Economics, 
“in the long term perspective of the world economy development before 2060 Russia’s share in the global economy is steadily declining (as opposed to the recent long term forecast of the Russian Ministry of Economic Development).” They named the demographic problem as a major reason bashing Russia’s apparent decline.