Natalya Antipova
The Prime Minister and Chairman of the United Russia party yesterday addressed the party's 10th Congress, presenting a programme of the country's social and economic development through the year 2020. He promised to avert an economic shock, protect people's savings in banks, and the interests of shareholders in housing construction. These were just some of the measures proposed. The party will draw up its own action plan to fit the programme of Mr Putin's Cabinet. The "Government-Party tandem" is beginning to work, and the State Duma will pass the leader's proposals into law today.
The mood in Gostiny Dvor, where the party congress was held, was upbeat. The photo album "United Russia: Seven Years out of 100" was distributed for free among the delegates. To upgrade their political awareness, a booklet titled "President Medvedev's Plans. The Values and Goals of his First Address" was also offered for reading.
The Duma Vice Speaker Lyubov Sliska, said "I expect a surprise from our leader's report". "This is no place for surprises, this is not a show," noted the head of RUIE (Russian Union of Industrialists and Entrepreneurs), Alexander Shokhin, on a more sober note. "The main thing is that Mr Putin assumed the formal functions of Party leader for the first time." Indeed, Mr Putin chaired the meeting for the first time.
The Party leader appeared together with President Dmitry Medvedev, Tatarstan's President Mintimer Shaimiyev, Minister for Emergency Situations Sergei Shoigu, Moscow Mayor Yuri Luzhkov and State Duma Speaker and Chairman of United Russia's Supreme Council Boris Gryzlov.
As Dmitry Medvedev headed for the small white rostrum in the middle of the hall, he was greeted with stormy applause.
"United Russia is the leading political force in the country, in short, the governing party in Russia," he began. "This exalted position imposes great obligations, but it also opens up opportunities for vigorous creative activity."
The President thanked United Russia for its activities and stressed that the main task today is to overcome the negative consequences of the financial crisis.
"The state will meet its obligations to its citizens, and the party must be involved in this work as much as possible. State support for the people who need help must be at the focus of your activities. Today, your daily care for and dialogue with the people are more important than ever. I very much count on your support of the government's activities," he said with emphasis, adding, "The dynamics of our life is such that we cannot afford to postpone the solution of pressing problems, we must act now."
Mr Putin spoke in detail about what needs to be done to solve all those problems. As he headed for the rostrum, he carried a thick blue folder with the party emblem.
"The key question for our congress is to discuss the concept of the country's long-term development," Putin said, noting that the political conditions in the country had been created for that.
"We need innovative development, GDP growth, the development of the manufacturing industries, higher labour productivity, energy saving, stabilisation of the size of the population, and the creation of a large and active middle class. All these were the goals set under Strategy 2020. Its implementation is beginning "in a difficult period".
The crisis, which started as a financial crunch, "is turning into an economic crisis", and resembles "a natural disaster", and like any natural disaster, cannot be prevented.
"But what we could, and had to do, was to foresee such events and take proactive measures in order to survive the crisis with minimum pain and without great losses," the Prime Minister said.
Much has been done, but "far from all the problems have been solved in advance". Yet in spite of all these problems, "we are not going to give up our strategic plans and put them on the back burner".
"United Russia is the biggest political force in the country; it has a real say in the formation and activities of the bodies of authority at all levels," Mr Putin said, praising his fellow party members, but immediately went on to say that "the tasks of party structures do not always or completely coincide with the tasks of the government bodies". Some government officials, businessmen and politicians "became too relaxed" in the era when economic conditions were favourable. "Such an attitude is absolutely irrelevant," he said.
"You have set ambitious goals, and our party will do everything to fulfill them," said Mr Gryzlov, who took the floor at the rostrum, carrying a red folder with the party emblem.
Mr Gryzlov promised that United Russia would rewrite its programme to meet present-day realities and would commit all its resources to implementing Strategy 2020, supporting the action programme proposed by the President and the Government.
After these speeches there was a break during which the party members were discussing and commenting on what they had heard. Many of them wondered whether Mr Putin would stay until the end of the Congress, though not many hoped he would. They were right - Mr Putin did not stay. President Medvedev also left Gostiny Dvor, and the VIP guest seats previously occupied by Vice Premiers, ministers and governors were filled by rank-and-file party members.
United Russia legitimised its merger with the Agrarian Party, reelected the governing bodies (the issue of a new chairman was not raised, contrary to the rumours that had been circulating), adopted amendments to the Charter, and heard from foreign guests. In addition, Mr Gryzlov pressed a big black button to open a new portal with "broad opportunities", including the website odnopartiitsy.ru, which was made by analogy with odnoklassniki.ru.
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Vladimir Putin's proposals:
To preserve savings and investments
The Government will do everything to protect people's interests and will not allow a repeat of the economic shocks of 1991 and 1998. To this end, the Government will "pursue a judicious monetary policy, sustain a predictable national currency rate, consistently fight inflation, and fulfill its social commitments".
To pay wages, pensions and social benefits on time
The financial reserves built up in the previous years will ensure the stability of the Russian budget system in the coming years, regardless of global prices for oil and other traditional Russian exports. "It means that the wages of public-sector employees, pensions, and allowances - all these will be duly paid and the system of social guarantees will function normally". The Prime Minister emphasized: "We will not solve problems and ‘patch up holes' at the expense of the country's citizens; this is not an option."
The average pensions will increase by 50% in 2010, compared with 2008. By the end of 2009, the average size of the social pension must be no less than a pensioner's subsistence minimum. In 2010, the size of the labour pension will be up more than 50% compared with 2008, partly due to a fairer assessment of the pension entitlements of those who worked during the Soviet period. Thus, citizens who start saving toward their pensions after 2010 can count on a pension covering at least 40% of their earnings after they have worked for 30 years.
To increase life expectancy
It is necessary to increase life expectancy in Russia to 72-75 years. All citizens must have access to quality healthcare and education, and be guaranteed worthy pensions.
To protect the jobless
"I think it is necessary to increase unemployment benefits by 1,500 roubles, in addition to indexing them for inflation by 8.5%, as of January 1, 2009." This would bring the unemployment benefit to 4,900 roubles a month.
To save on taxes
The tax rebate for people buying housing will retroactively be doubled to 2 million roubles as of January 1, 2008, saving such families not 130,000 roubles, but up to 260,000 roubles on taxes.
To stimulate exports
The Government will stimulate the exporters of domestically produced commodities and uphold Russia's economic interests in the external markets. "We should make aggressive use of the instruments to promote and uphold our economic interests."
To ensure VAT refund and streamline its computation
The mechanism of the VAT refund must be radically revised. The current arrears on the VAT eligible for refund out of the budget must be minimised before the end of the year. Starting next year, the procedure for computing the VAT on advance payments will be streamlined and the depreciation premium will be increased to 30%. It was previously planned that the computation of the VAT on advanced payments was to be streamlined starting with 2009, and the depreciation premium was to be increased to 30% starting with 2010. Now, both measures will be introduced simultaneously starting January 1, 2009.
To remove barriers for business
A package of draft laws aimed at removing excessive administrative barriers for business is to be passed by the State Duma before the end of this year.
At present, a simplified taxation system for small businesses is based on a flat tax rate of 15%. To relieve the fiscal load on small businesses and provide further incentives for their development, the regions should be given the right to cut the tax rate by 10 percentage points, to 5%. "The rate may vary depending on the type of business and ‘other objective indicators'".
To raise labour productivity
To be truly competitive, labour productivity in key industries must be increased three- and even four-fold, and the share of innovative products in the total output should increase from current 5% to 25% or even 30-35%. At the same time, energy consumption in the economy must be reduced by at least 45%.
"Only an effective economy can guarantee worthy incomes and a high quality of life for our people."
To help defence industry
More than 50 billion roubles will be allocated to prevent the bankruptcy of defence enterprises. "It is necessary to take into account that defence industry enterprises have a long production cycle and their sources of financing are limited".
