An automobile plant in Togliatti (file photo) (ITAR-TASS)
November 27, 2006 (RFE/RL) -- A new survey by the Organization for Economic Cooperation and Development (OECD) says Russia must pursue urgent economic reforms if it wants to sustain the country's current petrodollar boom.
The OECD report says Russia is vulnerable to rapid inflation and declining competitiveness if it fails to enforce fiscal discipline to managing continued high oil prices.
The survey deemed Russia's recent economic performance as "impressive," with the country experiencing an average of 6.7 percent annual GDP growth between 1999 and 2005.
But the OECD warns that continued strong growth will depend on a sound macroeconomic environment and market-friendly structural reforms. The group urged better reforms to empower citizens and enhance transparency.
It also qualified the expansion of state ownership as a "step back," saying Russia's record as an owner of industrial and financial companies is "poor."