14 April 2004 13:05
Russian premier stresses need for less poverty, management change
Moscow, 14 April: One of the priorities for the Russian government in coming years is to solve "pressing social
problems" which hinder progress on guaranteeing economic growth and cutting poverty in half. Poverty in many
regions has acquired "entrenched forms".
These statements were made to today by Russian Prime Minister Mikhail Fradkov at a meeting of the Federation Council,
during which Fradkov told senators about measures to improve government performance and about targets for the
country's socioeconomic development.
At the moment over 20m Russians live below the poverty line. In addition, some 30m "can in effect be classified
as poor". There are also concerns about the incomes of the so-called "working poor", who live
"dangerously close to the poverty line". In this regard, the government is placing certain hopes on the
reduction of the single social tax to 26 per cent [from 35.6 per cent], which should "stimulate a rise in
salaries".
Social benefits for poorer citizens should be converted into monetary payments. Only by doing this will people be
able to receive all they are entitled to in the form of state social help, Fradkov said. He added that benefit payments
lack "social justice". "The capabilities of the regions vary," he explained. [Passage omitted]
Fradkov stressed that Russia needs a more active youth policy. Among possible measures in this area, he proposed
going back to old practices such as construction brigades and various types of sporting events for young people. He
added that "young people are our resource, which we must treat as our competitive advantage". [Passage
omitted]
The modernization of management systems should be a key element in the work of the government, the prime minister
said. He stressed that "the ideology of management is changing". Previously, there was a tendency to look to
natural resources as a source of growth. Now it is vital to find "other resources for economic growth".
Fradkov said that, in particular, this entails management using the financial sector, innovations and human capital,
while maintaining safety standards.
The government is examining the possibility of producing three-year budget plans, Fradkov noted. He added that this
issue will be discussed at the government meeting on Thursday [15 April]. He said the cabinet was looking at the
possibility of "moving to medium-term budget planning".
In solving the problems of the Russian economy it is necessary not only to create new elements, "but also to get
rid of old and obsolete elements burdening the economy with superfluous costs and outmoded production", Fradkov
said. He told the senators that only about 50 per cent of the capacity of the processing industry was being used and
that the average age of plants was over 20 years.
In order to increase Russia's competitiveness on world markets it is vital for the government to "to create
the most favourable conditions for the development of new businesses in the country," Fradkov said. He went on to
stress that "growth is being lost today both because of unnecessary interference by the state in the economy and
because companies' access to resources for growth is restricted".
Mikhail Fradkov pointed out that large companies, which "deal with this issue independently", are able to
cope more or less successfully with these problems. However, small and medium-sized businesses need help, the prime
minister said.
[ITAR-TASS news agency] |
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