Prime Minister Vladimir Putin held a working meeting with Acting President of Ingushetia Rashid Gaisanov
Transcript of the beginning of the meeting:
Vladimir Putin: Mr Gaisanov, as is well known the situation in the republic remains difficult, not in the very least in connection with the continuing terrorist raids. Much has been said about the problem, but we should stop talking and start working on it. In fact, we are working and will continue working on this problem, and we have attained some results, as we all know.
But today we will highlight other issues, such as the socio-economic development of the republic. Ingushetia, like the other North Caucasus republics, has not been affected by the crisis as severely [as other Russian regions]. But nevertheless the situation is difficult, above all as regards employment.
Let us discuss this issue. Yet I have read official statistics on socio-economic development and seen an increase in the gross regional product. Mr Gaisanov, you have the floor.
Rashid Gaisanov: Mr Putin, thank you for finding the time for this meeting.
I would like to thank you for the support you have always provided to Ingushetia in the past and now, following the assassination attempt against President Yunus-Bek Yevkurov on June 22.
Indeed, today's socio-political situation remains settled, but looking at crime, as you said, things are complicated. But we are working and monitoring the situation, and will continue working.
Today, socio-economic issues have come to the fore. The issues we face are hampering socio-economic development. The low level of economic and social development is complicating the situation in the republic.
In our view, of key importance in this sphere is the decision taken by the federal centre to draft, approve and implement federal targeted programmes of socio-economic development of the republic.
Only such embracing, comprehensive methods can help solve the acute problems facing the republic in the current situation. I am referring above all to the high unemployment rate. Unemployment rate has always been high in the republic - I mean during the Soviet era - but not as high as now.
Other problems concern the shortage of schools and hospitals, and depreciated utilities infrastructure. All of these problems call for emergency measures.
Despite the global [economic] crisis, the authorities and you personally have decided that this programme must be approved. This decision is very important to us.
Vladimir Putin: Still, how did you attain growth in the first half of the year?
Rashid Gaisanov: The base is low, and industrial production...
Vladimir Putin: It was over 7%, right?
Rashid Gaisanov: Mostly thanks to trade.
Vladimir Putin: You mean the services?
Rashid Gaisanov: Yes, services. However, industrial production fell by 20% in 2008 compared to 2007 when it decreased by 30% compared to 2006. We have reported an improvement in the oil sector, above all thanks to better management and hard work. Investments have increased, mostly due to budget allocations.
Vladimir Putin: Can you report on the fiscal capacity?
Rashid Gaisanov: Ingushetia is the most heavily subsidised republic in Russia; subsidies account for over 90% of our funds.
Vladimir Putin: Do the subsidies you receive from the federal centre cover all of your current needs?
Rashid Gaisanov: They do, but other issues arise. We are appealing to the Ministry of Finance [to resolve them], which has always helped us. You decided at the last government meeting that additional financial assistance should be provided to the republic. We are thankful for this. Acting in compliance with our programme, we are trying to lower the amount of subsidies by nearly 30%.
Vladimir Putin: Which projects are the most promising?
Rashid Gaisanov: Our construction sector holds the best promise. As for the agrarian sector, we should primarily develop food processing. Oil production remains lucrative, but companies in this area are now finding themselves in financial difficulty.
We would also like to invest more in human capital assets, [looking at statistics on] our birth rate and our young professionals... By the way, thank you for allocating seats at Russian higher schools, 740 this year - a very good figure.
Many graduates from universities will return to the republic, but many others will remain in other Russian regions. We must improve the professional standards of our personnel.
Vladimir Putin: Do you have wage arrears in the public sector?
Rashid Gaisanov: We had, but it was literally a few million roubles. They amounted to slightly more than 4 million roubles on July 1, but we have repaid them by July 20.
