Industrial output in April dropped by 8.1% compared with March, but at least unemployment is not growing as fast. The latest statistics were presented to the Prime Minister at the Cabinet meeting yesterday. But Vladimir Putin looked further ahead. The question that engaged his mind was how the country would develop in the future. It was decided that development would be driven by small business and new technologies.
The Cabinet meeting began with an exchange of current information. This time the news was good.
"For the first time in the last six months we have positive data for the labour market, Deputy Prime Minister Dmitry Kozak broke the good news. In the last three weeks the number of people registered with employment agencies has been gradually going down."
"Let us hope that it is at least partly the result of our efforts," Mr Putin noted approvingly. "But the situation is still complicated, there is no reason to relax".
It is necessary to think about the future. Putting out a fire is one thing but building something from the ashes is a very different thing. All the hopes rest with small business: in developed countries it contributes at least 50% of the GDP, in this country it contributes less than 20%. The small business that we have today is mainly retail trade and it hardly ventures into other areas. Renting space is expensive. Connection to power supply and other infrastructure networks is still more expensive. Considering all this, competing with majors is impossible. These problems, according to the Minister of Economic Development, Elvira Nabiullina, will be addressed by the Programme of the Development of Small and Medium-Sized Business in 2009-2012, which was discussed at the meeting of the Government Presidium yesterday. Small business will now have access to state contracts and will be exempt from certain taxes. That would cost nearly a trillion roubles, of which 700 million will go to promote entrepreneurship. Perhaps a massive advertising campaign would encourage some people to open their own business.
The Government also counts on new technologies that would diminish our country's dependence on commodity exports. The other day President Dmitry Medvedev said that practically nothing has been done in the way of technological modernisation. Indeed, he said, there is a danger that we will lose what we have.
"Russia controls about 40% of the world space launch markets, is a key participant in the International Space Station (ISS) and some other major projects, Vladimir Putin reminded the Cabinet yesterday. But there is no room for complacency. It is a very dangerous illusion that having a solid space legacy we can easily keep our place among the leaders."
It is necessary not only to preserve but also to strengthen our competitive advantages in the space area, the Prime Minister believes. How? By developing the Plesetsk and Vostochny space launching sites, creating modern rockets and a new generation of manned spacecraft. All this would enable Russia to increase its share of the world space launch markets by 8-10%.
"Carrying others' payloads, usually hi-tech payloads, is not all we dream about, our potential is much larger, Mr Putin stressed. Russia cannot, must not and will not confine itself to the role of a space carrier".
To this end Mr Putin proposes to "have the Russian space industry face the Russian client and consumer." There are plans to speed up the launching of new satellites to make the communications, broadcasting and weather-watch networks more reliable and technically sophisticated.
Anastasia Savinykh
