* Russian official says WTO talks 'on track'
* Top adviser sees major inflows on capital to Russia
* Russia sees privatization as a means to spur competition (Recasts first paragraph; adds details, background, byline)
By Glenn Somerville
WASHINGTON, Dec 10 (Reuters) - A top Russian government economist said on Friday he hoped negotiations will be done by mid-2011 for Russia to join the World Trade Organization, a move the Obama administration has said it would welcome.
Arkady Dvorkovich, chief economic adviser to Russian President Dmitri Medvedev, also said the 2007-2009 financial crisis had pushed Russian authorities to speed reforms to make their economy more competitive and open to innovation.
"We are hopeful that by the middle of next year we can actually announce that all negotiations are completed" for entry to the WTO," Dvorkovich said.
He was speaking by satellite from Moscow to a meeting of the European Institute in Washington.
On Thursday, President Barack Obama voiced strong support for Russian membership in the global trade body and said the United States would make every effort see it happen.
"Welcoming Russia to the WTO would be good for them, but it would also be good for us and good for the global economy," Obama said at a meeting of his Export Council advisers.
BIGGEST ECONOMY OUTSIDE WTO
Russia has a $1.2 trillion economy, compared with the United States' $13 trillion one, and is the largest outside the WTO. Moscow wants to join by the end of next year and has largely resolved bilateral issues with the United States and the European Union.
Dvorkovich described negotiations as "on track."
Answering questions later, Dvorkovich played down concerns that large-scale capital flight was a continuing problem for Russia. He said that U.S. firms that had invested in industries as diverse as pharmaceuticals, energy and high technology were in fact planning to expand in Russia.
"We are expecting a major inflow of foreign direct investment over the next two to three years," he said.
He said plans were proceeding for privatizing some businesses in Russia, including some airports, and said that Russia sees privatization as a way to introduce more competition and transparency into its economy.
He said modernizing its financial system was a priority.
"We are working on the development of a financial center in Moscow to improve financial markets and financial services to our companies and our people and to provide better conditions to attract capital to Russia," Dvorkovich said.
He told another questioner the country was making major investments in "human resources," aiming to bolster education and the health-care system as part of a broader effort to increase productivity and said measurable progress was being made. (Editing by James Dalgleish)