Putin wants wage control, to compete India, China

[Brotherhood]

Putin wants wage control, to compete India, China - People's Daily OnlineSeptember 19, 2010

Russian Prime Minister Vladimir Putin Saturday underlined the need for a restraint in hiking Russian workers' wages, warning Russia could lose competition to India and China in economy.

Putin expressed concern at the possibility of Russia repeating the experience of the Western European nations, which are shifting manufacturing to other countries and are unable to stop this process due to incessant wage hikes.

"The government and trade unions should interact on the issue of level of wages. Russia risks the possibility of repetition of the experience of the Western European nations, which are shifting manufacturing to other countries and are unable to stop it," Putin said while addressing a forum of the Federation of Independent Trade Unions.

"Soon everything will be (made) in India and China, even the hi-tech production, because the cost of labor in these countries is beyond comparison," Putin said.

He underlined the need urged for "careful balance and taking restrictive measures." Putin also spoke against further hikes in workers' unemployment benefits, "misused by those not keen to work".

With a strong currency and comparatively high-labor costs, Russian businessmen prefer to import than produce in the country. For the similar reasons, foreign investors were also hesitant to invest in manufacturing in Russia.

By People's Daily Online

 

[below_freezing]

Well, Russian wages are nothing to be proud of either. It's just that their wages can buy nothing useful. Soviets were one of the richest people in the world, yet they could buy nothing with their money.

 

[ptldM3]

Well, Russian wages are nothing to be proud of either. It's just that their wages can buy nothing useful. Soviets were one of the richest people in the world, yet they could buy nothing with their money.

You can buy the same things in Russia as you can in other countries.

 

[below_freezing]

You can buy the same things in Russia as you can in other countries.

in soviet times, at least, russians were restricted from imported goods and despite their wealth, still had to wait in lines to buy.

currently, goods can be imported, but wages have fallen since the collapse of the soviet union.

 

[Chinese-Dragon]

I wonder is Russia is thinking about increasing their manufacturing capabilities?

 

[Markus]

Ok, so after Obama its Putin's turn now to let everyone know as to how China and India will become magnets and gobble up everything in the future.

 

[Tractor]

I wonder is Russia is thinking about increasing their manufacturing capabilities?

I also wonder Putin is thinking about increasing their manufacturing capabilities for produce more tanks and more fighters.

 

[SandsofTime]

Russians have capability to pull this off. Unlike America, democracy in Russia is more authoritarian so they can get unpopular but necessary measures passed more easily. Wage corrections are required as world economy becomes more uniform. This is the right step to take, unlike Americans who would prefer to gobble more debt and take ineffective measures before reality catches up with them. All power to Ruskies.