VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN

Media Review

20 november, 2009 17:56

“Vedomosti”: “Political economy: A task for boss”

The President's Address has left a very strange impression. A jumble of men and horses on the battlefield, as they say. He gives a rather negative appraisal of the heritage received from his predecessor and vaguely dreams of smart technologies, even interplanetary travel. He speaks about the ridiculous issue of time zones in Russia and promises long-awaited tax relief for charity organisations. He claims that, despite the real situation, we have an absolutely full-fledged political system and even more... It seems the text was automatically compiled from the pieces of different subjects.

The President's Address has left a very strange impression. A jumble of men and horses on the battlefield, as they say. He gives a rather negative appraisal of the heritage received from his predecessor and vaguely dreams of smart technologies, even interplanetary travel. He speaks about the ridiculous issue of time zones in Russia and promises long-awaited tax relief for charity organisations. He claims that, despite the real situation, we have an absolutely full-fledged political system and even more... It seems the text was automatically compiled from the pieces of different subjects.

However, despite the record 100-minute length, the Address misses many burning issues such as local government, the law enforcement situation and media freedom. I do not even mention the real mechanisms that would make the declared cosmically huge objectives achievable. And the main thing, no direct address to the "M generation," as Mikhail Khodorkovsky says, which is the only one able to make the modernisation U-turn.

So is it another move of the kind where all the steam goes for the hooting? If yes, do we need to prepare that in 2012 Medvedev will, at the instigation of a new (new old?) president, take up the post of Head of the Constitutional Court of the Russian Federation, an honorable position for a professional lawyer?

Another option: Medvedev saw his Address as the first step to enable his power with real force that he (and we all) needs for the country's modernisation. There are some facts supporting this assumption. Firstly, the growing number of the president's direct orders with defined and not very distant deadlines.

Until January 15, 2010, the government (V. Putin in charge) must:

- make proposals on a new approval procedure for investment projects that would help make timely decisions (within three or four months), taking into account the power of top officials (heads of top executive bodies) of Russian constituent entities to supervise this procedure and their responsibility for results.

Until February 1, 2010, the government (V. Putin in charge) must:

- draft an action plan to establish a financial system that would meet the requirements of innovative development and economic modernisation;

- take additional measures to support consumer lending and expansion of residential construction;

- take concrete measures to stop waste of associated petroleum gas.

Until March 1, 2010, the government (V. Putin in charge) must:

- draft regulations to improve the quantity and quality of the state's presence in commercial activity, taking into account the programme's completion until 2012;

- make proposals to the Russian president on the procedure and deadlines for converting state corporations into joint-stock companies working in the competitive environment, and also deadline proposals for the life of other state corporations.

I cannot say anything about time zone changes (no instructions have been given by the president yet) but the abovementioned objectives, if successful, could make a good foundation for a new economic direction. Next March, Medvedev and other experts will see if the government is ready for such a challenge. And it will become clear whether Vladimir Putin, who was assigned responsibility for all these achievements, will act as his big boss wishes.

We should not, of course, build sandcastles and believe that with this economic foundation the country will start crawling out of the crisis. This measure is necessary but not sufficient. Nothing will change unless a radical reform of the government is undertaken. Medvedev mentioned nothing about it.

In any case, February and March will be a kind of a landmark. Medvedev will have only two options, depending on the suggestions of the government. Should the draft documents really be what is now necessary to modernise the economy, he will have to have the courage to modernise the political system as well, if he wants success. Should the government (voluntarily or not) get off with some insignificant runaround, the president will have to either replace his cabinet with a more functional team or put up with the formality of his post, which will increase chances of unexpected shock from which Russia risks failure to emerge as a unified state.

Yevgeny Gontmakher, Doctor of Economics, Professor

http://www.vedomosti.ru/newspaper/article/2009/11/20/219327