Medvedev spoke about the role of the defense industry in the growth of the Russian economy

The domestic defense industry contributes to significant growth of the Russian economy, its products are in demand, said Deputy Chairman of the Russian Security Council, Chairman of the United Russia party Dmitry Medvedev.

“The defense complex is now contributing to significant economic growth, and its products remain in great demand. In the future, the structure and conditions of its work will change. The state and business must prepare for such processes in advance. It is then that the result will not be the displacement of the civilian economy, but the growth of the overall industrial potential of the state,” Medvedev said in an interview with Vedomosti.

The Deputy Chairman of the Russian Security Council rejected the possibility of “Dutch disease”, the harmful influence of the active development of the defense industry on the civilian sectors of the Russian economy.

“The redistribution of labor and capital into the rapidly growing sector, which the defense industry has become, is more accurately called not a “disease”, but a risk of excessive redistribution of limited resources. When one group of industries quickly increases production, the demand for qualified personnel, equipment, components and capacity grows faster than supply. Then resources become more expensive for everyone. “Dutch disease” has nothing to do with it,” he added.