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Tuesday, June 14, 2005

U.S. Secretary of State Rice Praises Positive Changes in Russian Economy

Condoleezza Rice14.06.2005 12:19 MSK MosNews - U.S. Secretary of State Condoleezza Rice said in an interview with the MSNBC television channel that positive changes are taking place in the Russian economy and a real middle class is emerging in the country. Rice took part in the popular TV show "Hardball with Chris Matthews". During the interview she noted that a lot of good changes have taken place in Russia over the last few years. Rice mentioned furniture store lines as proof that the population's purchasing power is growing and the nascent Russian middle class is expanding. "The longest lines are at the furniture stores, Chris, and do you know why? Because people are really buying apartments, buying housing and furnishing it. The middle class [in Russia] is booming," Rice said. The U.S. state secretary said several times that the "middle class is developing in Russia", but stressed that it is necessary to solve the problem of "inequality in wealth distribution" between large cities and the rest of the country. "It [middle class] is developing in the cities, but when you go to the province, it's a different story altogether," Rice said, adding that "even Russian authorities speak frankly of this problem". She also added that it is necessary to develop small businesses in Russia and to guarantee the rule of law that would be conducive to its development. "The rule of law is necessary not only for the attraction of large businesses, but also for the creation of a business culture in which Russians themselves will begin establishing small business enterprises and move the country forward," said the head of the U.S. foreign policy agency.

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