I thought you might be interested in President Putin's State of Russia address. It continues to be interesting to watch the evolution of the country... a continued push towards sustainable and reasonable economic growth gets sidetracked every now and then by a need to control... it is generally believed that Putin wants to continue to gain investments in the country, but it is clear that he does not want to be a "western" nation. Some thoughts / summary of his speech from the Chamber of Commerce appear below.
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PRESIDENT VLADIMIR PUTIN'S ANNUAL ADDRESS TO THE FEDERAL ASSEMBLY THE KREMLIN,
12:00, APRIL 25, 2005
Mironov: Esteemed members of the Federation Council and deputies of the
State Duma of the Federal Assembly of the Russian Federation,
I hereby declare open the joint session of the two houses to hear the
Address of the President of the Russian Federation to the Federal Assembly of the
Russian Federation. Vladimir Vladimirovich, I invite you to present the Address of
the President of the Russian Federation to the Federal Assembly of the Russian
Federation.
Putin: Esteemed Federal Assembly, esteemed citizens of Russia,
In the 2005 Address I will deal with a number of fundamental ideological
and political issues. I believe that at this stage in the development of Russia
such a conversation is necessary.
The most urgent of the social and economic tasks facing us, including
concrete national projects, were named in the previous Address. I intend to
elaborate on them in the Budgetary Address and in a number of other documents. And
I would urge you to consider last year's Address and this Address to the Federal
Assembly as a single program of action, as our joint program for the next decade.
I consider that the main political and ideological task is the development
of Russia as a free and democratic state. We frequently utter these words, but the
underlying meaning of the values of freedom and democracy, justice and legality
are seldom treated in a practical way in our life. But there is the need for such
analysis. Objective, quite complex processes in Russia tend to increasingly become
a subject matter for energetic ideological debates, and they concern particularly
freedom and democracy. One can hear quite often that as the Russian people kept
silent for ages, freedom is not customary for them and allegedly not needed, and
for that reason, our citizens allegedly require constant parental control.
I would like to bring those who see it this way back to reality, to what
we really have. To that end, let me again remind you how modern Russian history
emerged. First of all, it is necessary to admit -- I have already spoken about it
-- that the Soviet Union's collapse was the biggest geopolitical catastrophe of
the century. For the Russian people, it was a true drama. Tens of millions of our
compatriots and co-citizens found themselves outside Russian territory.
The epidemic of disintegration spread to Russia itself. The savings of our
citizens were devaluated, and old ideals were ruined. Many institutions were
disbanded or reformed hastily. The country's integrity was impaired by terrorist
intervention and the Khasavyurt capitulation that followed.
Oligarch groups, while having unlimited control over information flows,
served exclusively their own, corporate, interests. Large-scale poverty was
regarded as a norm. And this was happening against the background of a grave
economic decline, unstable finances and paralysis of the social sphere. Many
believed at the time that our fledgling democracy was not a continuation of
Russian statehood, but its total collapse, that it was a protracted agony of the
Soviet system.
Those who thought this way were wrong. Particularly at that period very
important events were taking place in Russia. Our society was developing the
energy of self-protection and the will for new, free life. In those difficult
years the people of Russia was faced with the challenge of simultaneously
upholding the state sovereignty and to choose unmistakably a new vector in the
development of its thousand-year history. A daunting task had to be solved of how
to preserve our own values, not to fritter away unchallengeable achievements and
reaffirm the viability of Russian democracy. We had to find our own road to the
building of a democratic, free and just society and state.
Speaking about justice, I mean of course not the notorious formula "take
away everything and share it equally among all," but the opening of broad and
equal opportunities of development for all, success for all, a better life for
all. Ultimately, it is through the assertion of just such principles that we are
to become a free society of free people. And in this connection, it is worth
recalling how, historically, the aspiration for freedom and justice was being
formed in Russian society, how it germinated in social consciousness.
First of all, Russia has been and will be a major European nation. For
centuries the ideals of freedom, human rights, justice and democracy worked out
through much travail by European culture have been a determining value benchmark
for our society. For three centuries we, together with other European peoples
passed hand-in- hand through the reform of Enlightenment, the difficulties of the
emergence of parliamentarism, the municipal and judiciary powers, and the
formation of similar legal systems. Step by step moved together toward the
recognition and broadening of human rights, universal equal suffrage, awareness of
the need to take care of the poor and the weak, to emancipate women and toward
other social gains.
Let me repeat, we did all this together, lagging behind in some areas, but
sometimes outstripping the average European standards in some areas. I am
convinced that for modern Russia the values of democracy are no less important
than the quest of economic success or social wellbeing of people. First, it is
only in a free and just society that every law-abiding citizen has the right to
demand solid legal guarantees and protection of the state. And undoubtedly
ensuring human rights and freedoms is critical both for the development of the
economy and for the social and political life of Russia. The right to be elected
or appointed to a public position, as well as the right to get public services,
public information should be ensured equally for all citizens of the country.
Anyone who has breached the law should know that penalty is inevitable.
Second, only in a free society, every able-bodied citizen has the right to
take part in competition on equal terms and freely choose partners and earn
accordingly. Everyone's incomes should be determined by one's labor and abilities,
skills and efforts, and everyone should have the right to dispose of what one
earns at one's own discretion, including by handing it over to one's children. So
the observance of the principles of justice is directly linked with equal
opportunities. In turn, this should be ensured by no other party than the state.
Third. The Russian state, if it wants to be fair, should provide
assistance to those who cannot work and those with low incomes, disabled people,
pensioners, orphans to make sure that they live worthy lives and that the basic
benefits should be accessible to them. All those functions and duties are directly
vested in the state by society. Finally, a free and fair society shall have no
internal borders and restrictions on movement, while it should also be open to the
rest of the world. This gives citizens of our country the opportunity to use the
riches of human civilization in full measure, including the achievements of
education, science, world history and culture.
Particularly our values predetermine our willingness to ensure growth in
Russia's state independence, the strengthening of its sovereignty. We are a free
nation, and our place in the modern world -- I would like to particularly
underscore this -- will only depend on how strong and successful we are.
(Applause.)
I focused on those key and generic notions in detail to show how those
principles should be reflected in our everyday life. I believe that those moves
could be taken in at least three directions. First, measures aimed at developing
the state. Second, the strengthening of the law and the development of the
political system, increasing the efficiency of the judicial system. And thirdly
and finally, the development of the individual and the civil society as a whole.
First, about the State. You know that over the past five years we had to
address the difficult tasks of preventing the degradation of state and social
institutions. At the same time we had to lay the foundations for development for
years and decades ahead. We were clearing the logjams together and were gradually
moving forward. In this connection, the policy of stabilization was in fact a
policy of reacting to the accumulated problems. That policy has on the whole
justified itself, but by now it has exhausted itself. It should now give way to a
policy that is forward-looking. And to this end we need an effective state.
However, in spite of the many positive changes, this truly central problem has not
yet been solved. Our bureaucracy is still to a large extent an isolated and
sometimes arrogant caste which sees the civil service as a variety of business.
Therefore, the number one task for us still is to make state administration more
effective, to ensure that the gove!
rnment officials strictly abide by the law and provide quality public services to
the population.
It has been a feature of recent times that the dishonest part of our
bureaucracy, both federal and local, has learned to turn the achieved stability to
its own advantage, to serve its own selfish interests. It has come to use the
favorable conditions that we have finally achieved, the new chances, for
increasing, not public, but their own wellbeing. By the way, party and corporate
bureaucracies are behaving no better than the state bureaucracy in that way. And
if today, now that prerequisites have been created for serious and large-scale
work, the state succumbs to the temptation of simple solutions, the reactionary
bureaucracy will gain the upper hand. Instead of a breakthrough we may get
stagnation, while the potential of civil society is not tapped and corruption,
irresponsibility and incompetence will rapidly grow throwing us back to the path
of degradation of the economic and intellectual potential of the nation, the
growing separation of power from the interest!
s of society and a reluctance of the state apparatus to heed the demands of the
people.
Let me repeat that we cannot be satisfied with the present-day reality.
Having freed the biggest media outlets from censorship by the oligarchs, we have
failed to protect them from unhealthy zeal of some bosses. While directing the
law-enforcement bodies to wage a just battle against crime, including tax crimes,
we see every now and again crude violations of the rights of entrepreneurs and
quite often outright racketeering by government bodies.
Many public servants believe that it will always be this way and that
those flaws are particularly the result. Perhaps they will be disappointed to hear
that it is not our plan to hand the country over to ineffective and corrupt
bureaucracy. (Applause.)
We proceed from the assumption that having developed democratic procedures
in the country is not just a must. This is also beneficial in economic terms.
Being in a responsible dialogue with society is politically expedient. Therefore,
Russian public servants today should learn to speak with the public using the
language of cooperation, the language of public interest, dialogue and real
democracy, rather than commands. This is our fundamental position and we will
stick to it. (Applause.)
The next in significance objective, a major objective, in the sphere of
state construction is the strengthening of the federation. The main goal we are
looking to attain is building an effective state within the existing borders. You
know that some territorial units have tended to unite recently. This is a positive
trend, and it is important to make sure that it does not turn into yet another
political campaign. It is necessary to bear in mind that territorial units tend to
unite not for the sake of just uniting. This is done for the sake of optimizing
government, for the sake of more effective socio-economic policy and, eventually,
for the sake of improvement of living standards of the population.
Naturally, the process of unification of territorial units of the
federation is a complex thing. But otherwise, in certain cases - - note, not
always and not everywhere, but in certain cases, we will not be able to
concentrate the state's resources for governing a vast and unique in its
composition territory. Actually many territorial units in this country are
complex. The problem of distribution of authority among their government bodies,
primarily in the tax and budgetary sphere, has constantly emerged. However, so far
all the energy has been going into arguments and approvals, and sometimes into the
settling of accounts in law courts, including the Constitutional Court. And this
is happening at a time when new opportunities have presented themselves and the
need has arisen to implement a whole number of major national projects.
You know the specific examples very well. The on-going merger of the
Krasnoyarsk Krai, the Taimyr and Evenki Autonomous Okrugs is called upon to help
develop new fuel deposits and providing power for the eastern parts of Siberia.
Clear-cut and efficient administrative decisions should tap the benefits of largescale
investments in the development of the Russian territories.
I consider the third serious task to be the conduct of an active
policy of liberalization of the entrepreneurial space. I would single out measures
to stabilize civil process, a dramatic broadening of the scope for free enterprise
and the sphere of applying capital. First, measures should be taken to strengthen
the civil process. I have already said that in the near future we are to reduce to
three years the period during which deals can be legally declared null and void.
This period at present is ten years. The suggestion is already the subject of a
broad discussion and therefore I would like to stress again the motives behind
this proposal. The inviolability of private property rights is the bedrock
foundation for the conduct of any business. The rules that the state follows in
this field must be clear to everyone and, also very important, they should be
stable. This makes it possible to plan normally the conduct of business and the
life of everyone who is deve!
loping his business. It enables citizens to conclude agreements, securely and
without fear, on such vital issues as the acquisition of housing or its
privatization which has by and large taken place in our country. This provides an
incentive for the acquisition of property and the expansion of production.
At the same time, one cannot treat with indifference those who broke the
law in effecting their deals. Of course, the state should react to this. But I
have to say that three years is also a long period which fully allows interested
persons and the state to settle their relations in the law court. Let me stress
that the three-year statute of limitations has been the longest in our legislation
over the past hundred years. Ten years is an unjustifiably long period proceeding
from economic and legal considerations. Such a period creates a lot of uncertainty
and is a disincentive above all to the state. Not just to the state, but also to
other participants in this process. By the way, we have submitted relevant
proposals concerning amendments to legislation to the government of the Russian
Federation. Unfortunately, there has been no reply so far, but it is only
necessary to correct one word in one article. Please, speed up formal procedures.
(Applause.)
Second, it is necessary to help citizens to legalize, in line with a
simplified procedure, housing which they actually own, namely garages, housing,
gardens in various cooperatives and communities and relevant land plots.
(Applause.) This procedure for legalization should be as simple as possible for
citizens, and the issue of relevant documents should not present them additional
problems. By the way, this will offer such opportunities as lawful inheritance,
obtaining bank loans on the security of this property.
Third, it is necessary to encourage inflow of capital accumulated by
citizens into our national economy. It is necessary to permit citizens, in line
with a simplified procedure, to declare the capital accumulated by them in
previous years. This procedure should only have two preconditions: the payment of
a 13 percent income tax and depositing relevant money amounts with Russian banks.
They money should work for our economy, in our country, rather than hang about in
offshore zones. (Applause.)
Let me focus on yet another objective, a system making objective, in my
opinion, in the sphere of state development. It concerns the activities of tax and
customs agencies. I believe that checking the observance of tax and customs
legislation should be their priority, rather than performing some or other plans
for collecting taxes and tariffs. Obviously, fiscal agencies in any country should
verify that taxes are paid properly. But it would be reasonable to admit that in
the past years our tax system was in the making. Time and law enforcement and
judicial practices were required for us to get clear answers to lots of questions.
Fiscal agencies should not overlook violations of the law. Certainly they
should not overlook them. Still, it is necessary to find ways for repaying back
taxes that would observe the state's interests, while not ruining the economy and
not driving business into the corner. Tax agencies have no right to terrorize
business by going back to the same problems again and again. They should work
rhythmically, timely react to breaches, while paying their main attention to
checks related to the current period. I believe that all the above measures will
help stabilize civil circulation, add new guarantees for long-term business
development, and eventually give businesses more freedom and result in the state's
fair attitude to business.
Finally, yet another important issue. Russia is extremely interested in
large-scale inflow of private, including foreign, investment. This is our
strategic choice and strategic approach. But in reality, investors have often
faced restrictions which have been explained by all sorts of reasons, including
national security considerations. But this is not properly arranged in legal
terms. This uncertainty creates problems for the state and investors. We should
clearly define economic spheres where the interests of the strengthening of
independence and security of Russia prompt us to make sure that national,
including state, capital controls them. (Applause.)
I mean certain infrastructure facilities, enterprises working under the
state's orders, mineral deposits of strategic significance to the country's
future, to future generations of Russians, as well as infrastructure monopolies.
It is necessary to develop and secure in legislation a system of criteria defining
restrictions for foreign capital in terms of its participation in those sectors of
the economy. At the same time, it is necessary to define a list of sectors or
facilities which should not be expanded and should not be interpreted so as to
expand it. This approach has been used by many countries with developed market
economies, and we should also use this approach.
While retaining this control and restrictions in a number of economic
sectors, we should on the whole create favorable conditions for private capital
coming to any attractive sectors and, I think you will share my view, we have to
admit that for the time being too little has been done in this respect. I repeat,
all those decisions should be made at the legislative level. The goal is obvious:
investors certainly don't need riddles and puzzles. Their money will only go where
there is stability and where the rules of the game are clear and understandable.
This approach would be fair both with regard to society and the state which is to
defend its long-term interests thinking years and decades ahead about the
development of the country.
Esteemed colleagues,
A necessary condition of the development of democracy in the country is
the creation of an effective legal and political system. But democratic procedures
cannot develop at the cost of law and order, hard-won stability and sustained
implementation of the chosen economic course. I see this as proof of the
independent character of the democratic path we have chosen. Therefore, we will
move forward considering our own, internal circumstances, but by all means
proceeding from the law and from constitutional guarantees.
To be sure the authorities should not abuse the administrative levers at
their disposal and it is their duty to explore ever new possibilities for
strengthening real democratic institutions in the country. To deny one's own
people, to deny ourselves the ability to live according to democratic laws means
not to respect ourselves and our fellow citizens, it means not to understand the
past and not to see the future.
"State power," wrote the great Russian philosopher Ivan Ilyin, "has its
limits, stemming precisely from the fact that it is power that imposes itself on
man from outside. All the creative states of the soul and spirit, envisaging love,
freedom and good will are outside the jurisdiction of state power and cannot be
prescribed by it. The state cannot demand from its citizens faith, kindness and
convictions. It may not dare to regulate scientific, religious and artistic
creativity. It must not invade the ethical, family and daily life and, without
extreme need, to restrain economic initiative and economic activities of people."
Russia is a country which has chosen democracy by the will of its own
people. It has itself embarked on this road and, abiding by all the universally
recognized democratic norms, it will itself decide, in the light of its
historical, geopolitical and other features, how to implement the principles of
freedom and democracy. As a sovereign country, Russia can and will independently
determine for itself and timeframe and the conditions of its movement along that
path. (Applause.)
However, consistent development of democracy in Russia is only possible in
a legal and legitimate way. Any extra judicial methods of fighting for national,
religious or other interests contradict the very principles of democracy. The
state will react to them in a legal, but tough manner. We need the kind of law-
enforcement bodies in which a decent citizen would be proud to work, and people
would not cross to the other side of the street at the sight of a uniformed man.
Those who regard their own material gain and not upholding the law as their main
goal have no place in the law- enforcement system. Therefore, the motivation of
the people serving with the law-enforcement bodies should be above all to provide
quality protection of the rights and freedoms of citizens.
And finally, if some sections of Russian society continue to perceive the
judiciary system as a corrupt system, it would rule out any talk about effective
justice.
On the whole, I should note that organizing the fight against crime in the
country calls for a fundamentally new approach. Corresponding decisions will be
prepared. Strengthening of law and order is inseparable from removing the sources
of terrorist aggression on the territory of Russia. Over the past years we have
made many serious steps in fighting terror. But we should not entertain any
illusions. The threat is still very strong. We are still taking very serious
punches, criminals continue to perpetrate egregious deeds aimed at intimidating
society, and we should have the courage to continue the work to eradicate terror.
It is enough to show a sign of weakness, spinelessness, the losses will be
incomparably greater and they can culminate in a national catastrophe.
I expect energetic work to strengthen security in southern Russia, to
consolidate freedom and justice there. The conditions for that are the development
of the economy, the creation of new jobs, the building of social and production
infrastructure facilities. I am in favor of the holding of parliamentary elections
in the Chechen Republic this year. They should provide the basis of stability and
the development of democracy in the region.
Let me note that already there are considerable prerequisites in the North
Caucasus region for a faster-than-average economic growth. It has some of the best
transportation infrastructures in Russia, quality manpower, and the number of
people wishing to engage in entrepreneurial activities there, according to opinion
polls, is higher than the average Russian indicator. At the same time, there is a
much higher share of the shadow economy and economic crime. In this connection,
the power bodies should not just strengthen the law- enforcement and judiciary
systems in the region, but promote business activities of the population.
We should pay as much attention to other strategic regions in the Russian
Federation, meaning the Far East, the Kaliningrad Oblast and other border
territories. It is necessary to concentrate the state resources on expanding the
transport, telecommunications and energy infrastructures, including the creation
of transcontinental corridors. These regions should provide the basis for the
cooperation of Russia with the contiguous states, with our neighbors.
Esteemed Federal Assembly,
Very soon, on May 9, we will mark the 60th anniversary of the Great
Victory. That day can rightly be regarded as the day of the triumph of
civilization over fascism. The common victory made it possible to uphold the
principles of freedom, independence and equality of all the peoples and nations.
To us, it is obvious that victory had been achieved not only by force of arms, but
by the fortitude of all the peoples that were at the time living in the union
state, and the cohesion of people against inhumanity, genocide and the claims of
one nation to goad other nations.
Meanwhile, the horrible lessons of the past dictate our imperatives today.
Russia, linked as it is with the former republics of the USSR, linked with
independent states today by a shared historical destiny, by the Russian language
and the great culture, cannot stand aside from the general striving for freedom.
Now that independent states have been formed and are developing in the post-
Soviet space, we all want to measure up to humanistic values, to the broad
potential of individual and collective success and the hard- won standards of
civilization, standards that can deliver common economic, humanitarian and legal
space.
In upholding Russia's foreign policy interests we are interested in
the development of the economy and the strengthening of the international
authority of our close neighbors. We are interested in synchronization of the pace
and parameters of reform processes in Russia and the Commonwealth states, and we
are ready to borrow the truly useful experience of our neighbors and share with
them our own ideas and our results.
Our goals in the international arena are crystal clear: the security of
our borders and the creation of favorable external conditions for addressing
internal Russian problems. We are not inventing any novelties, but we seek to use
everything that has been accumulated by the European civilization and by world
history. It is also not open to question that the civilizing mission of the
Russian nation in the Eurasian continent should be continued. It consists in
democratic values, multiplied by national interests, enriching and strengthening
our historical community.
Besides we find particularly important getting international support in
ensuring the observance of rights of Russian compatriots abroad. This is not a
matter for political or diplomatic haggling. (Applause.) We hope that the new NATO
and EU members in the post- Soviet space will really show their respect for human
rights, including the rights of ethnic minorities. Those have no right to demand
that others should observe human rights, who do not respect, do not observe or
cannot ensure them themselves. (Applause.)
We are also ready to be effective partners with all countries in dealing
with global problems -- from looking for effective responses to the worsening of
the state of the environment to space research, from preventing global man-made
catastrophes to preventing the spread of AIDS, and naturally pooling efforts in
the struggle against such challenges to the existing world order as international
terrorism, crossborder crime and drug trafficking.
A few words on priorities in the development of civil society. Vitte wrote
once that the state was not creating so much as compensating. The real creators
are all citizens. Rather than obstructing independence, it is necessary to promote
it in any way and provide assistance. This is still topical. I believe that we
should first and foremost ensure the rights of citizens to objective information.
This is a most important political issue and it is directly related to our state
policy on the principles of freedom and justice.
In this respect, I am pinning certain hopes on the draft law on
information openness of state bodies, which is being debated now. It is important
to have it adopted as soon as possible. Its realization will let citizens get more
objective information on the activities of the state apparatus, will help them to
protect their interests.
I would like to speak today about another, quite concrete problem, namely,
what should be done for national television to take account in full measure of the
most pressing requirements of Russia's civil society and ensure its interests. We
have to create guarantees that Russian state television and radio broadcasting
will be as objective as possible, free from the influence of any particular
groups, and reflect the whole range of social and political forces existing in the
country. (Applause.)
I propose to enlarge the powers of the Public Chamber in ensuring civil
control over compliance by TV channels with the principles of freedom of
expression. (Applause.) To this end a commission may be created within the Public
Chamber from people who command respect in the professional community who would
make sure that broadcasting policy is independent and that qualified personnel is
hired. And to this end I am planning to submit to the State Duma corresponding
amendments to legislation. Besides, access to the media should be given to all the
parliamentary factions. (Applause.) I am sure that the proposed measure will
enhance the quality and objectivity of the information that our society gets
today, it will intensify cultural life and enable every citizen, even if he lives
in the remotest part of our country, to share in all the achievements that are so
plentiful in the present-day world.
And finally a few words about the guarantees of the activities of
political parties in parliament. I believe that every faction should have equal
opportunities to express its positions on the issues being discussed, to make its
proposals, to offer its judgment on key issues of the nation's development, to
have its representatives in the governing bodies of committees and commissions, to
seek the inclusion in the agenda of the themes and problems that interest it. I
also believe that it is necessary to pass a corresponding law on the procedure of
parliamentary investigations. (Applause.)
In addition, in order to further strengthen the role of parties in forming
state power, I suggest that the State Council discuss the issue of adjusting the
new procedure of investing with powers the chief executives of the subjects of the
Federation. The President of the country might propose as a candidate for the post
a representative of the party that has won regional elections. (Applause.)
Esteemed colleagues,
Speaking about the fundamental problems of the development of the state
and the civil society, I cannot help touching upon some concrete issues whose
solution is long overdue. I am profoundly convinced that the success of our policy
in every sphere of life is closely connected with the solution of very acute
demographic problems. We cannot resign ourselves to the fact that Russian women
live almost ten years and Russian men almost 16 years less than in Western Europe.
Meanwhile, many of the present causes of death are not only preventable, but do
not even call for particularly high expenditure to prevent. In Russia, nearly 100
people a day die in road accidents. The reason for this is well known and we
should implement a whole range of measures to overcome this appalling situation.
We keep coming back to the issue of the state of the healthcare service.
Ways of improving the situation in the sphere are the subject of an active ongoing
discussion. Without anticipating the final decision, I am sure that we
should first of all ensure that medical care is accessible and of high quality, we
should revive prevention of disease as the tradition of the Russian medical
school. (Applause.)
Let me specially focus on another topic, a complex problem for our
society. The effects of alcoholism and drug addiction. Of alcohol poisoning alone,
particularly poisoning with alcohol surrogates, about 40,000 Russian citizens die
annually. They are mostly young men who upkeep their families. But this problem
cannot be resolved by bans. Our activities should result in the recognition by the
younger generation of the need to live a healthy life, engage in physical culture
and sports. Every young individual should realize that a healthy way of life is
his personal success.
Still, while looking through budgetary problems for next year, the
government's investment programs, I could not see there any intention to deal with
this problem at the federal level. Clearly, in terms of legislation, this is a
problem for the regional and municipal levels. But without appropriate support
from the federal government, it will be impossible to resolve this problem.
Please, make relevant amendments. (Applause.)
Yet another national problem. A low birth rate. The number of families
having one child only tends to grow. We need to increase the prestige of
motherhood and fatherhood. We should create conditions that would be favorable for
giving birth to children and bringing them up. By the way, I would find it
reasonable to repeal the tax on inherited property. (Applause.) The thing is that
the wealth worth millions is hidden somewhere in offshores anyway. It is not
inherited here. But as for a small country cabin, one has to pay so much for it
one cannot afford quite often. (Applause.)
I also believe that growth in the population should be accompanied by a
reasonable immigration policy. We are interested in an inflow of skilled, legal
labor resources. Quite a substantial number of entrepreneurs in Russia have used
the advantages of illegal immigration. The thing is that an illegal immigrant
having no rights is particularly suitable for unlimited exploitation. By the way,
those are particularly dangerous in terms of legal offenses.
But we should not only be concerned about reducing the scope of the shadow
sector. We should be concerned about real benefits for the whole Russian state and
society. Eventually, any legal migrant should get an opportunity to become a
citizen of Russia. We cannot delay such problems.
Measures aimed at creating conditions favorable for giving birth to
children, reducing the mortality rate and streamlining migration should be taken
simultaneously. I am convinced that our society can resolve those problems and
gradually stabilize Russia's population. (Applause.)
It is necessary to draw the line under other problems accumulated over
years. This primarily concerns salaries to teachers, doctors, culture and science
employees and army servicemen. They should at long last feel the benefits of
economic growth in the country. They are responsible for new generations of
Russian citizens to grow healthy and educated people retaining traditions and
spiritual values of their ancestors.
They are the people who set modern standards for the development of
society, take part in formation of Russia's current and future elite. They keep
the country's cultural and spiritual heritage and it depends on the quality of
their work, not less than done on economic growth, what country we will live in
tomorrow, what level of freedom, justice and democracy we are going to have in it
and how safely the country is defended.
Still, the real level of work pay in those sectors is still lower than at
the end of the 1980s, and average wages of those on the government's payroll are
substantially lower than average wages in the country. Out of 18 rates in the
unified tariff rate, 12 are below the subsistence level. That is, the risks that
those working in organizations financed from the budget may find themselves in the
poverty zone are very high. This humiliating position makes it impossible for
those people to work effectively and creatively.
I believe that in the coming three years it is necessary to increase
incomes of those on the government's payroll by 1.5 times at least in real terms.
That is, in the coming years their salaries should grow at least 1.5 times faster
than consumer prices. (Applause.)
This concerns the required minimum below which we cannot, we should not,
we have no right to go. Therefore, we will be able to bring average work pay in
the government financed sector closer to average work pay in the country. But is
necessary to bear in mind that regional authorities are responsible for fixing
salary rates and paying salaries timely to the bulk of them. It is necessary to
arrange interbudgetary relationships in such a manner that territorial units of
the Russian Federation should also be able to increase salaries in the government
financed sector at a faster pace. (Applause.)
At the same time we should be aware that simply raising wages is not
enough to solve the problems of the public sector. The need is long overdue for
financial solutions and mechanisms that would provide an incentive to the social
sphere organizations to achieve effective results.
Financial policy therefore must be an incentive to making social services
more accessible and improving their quality.
And finally conditions should be created for attracting investments into
healthcare, education, science and culture from other than state sources. Let me
also stress that the tasks set in the previous Address for modernization of the
education and health spheres must be addressed, but with maximum care. (Applause.)
Reorganization need not become an end in itself. (Applause.) The main
thing is the quality of services, I should stress, their accessibility to the
overwhelming majority of citizens, and their real impact on the social and
economic processes in the country.
Speaking about our value benchmarks let me touch upon what I consider to
be one more important theme. I am referring to the standard of public morality and
culture. A high business reputation has always been a worthy guarantee in striking
deals, and human decency, a necessary condition of participation in the life of
society and the state. Russian society has always condemned immorality. Indecent
behavior has always been publicly condemned.
In Russia, law and morality, politics and ethics have traditionally been
recognized as close and related concepts. In any case their interconnection was a
declared ideal and goal. For all the abuses, the standard of morality in tsarist
Russia and in the Soviet times was a significant scale and criterion of people's
reputation both in the workplace, in society and in day-to-day life.
One can hardly deny that such values as friendship, mutual help, trust,
comradeship and reliability have over the centuries been unassailable and
permanent values in the Russian land. (Applause).
Professor Petrazhitsky, the noted Russian theoretician of the state and
law, noted that the duty to help the needy, and to regularly pay due wages to
workers were first and foremost ethical norms. Let me note that this was written
in 1910. I think that without following moral standards universally accepted in
civilized society, modern business can hardly count on being recognized as
respectable. It will hardly become respected, and not only in the world, but, far
more importantly, inside its own country. Many difficulties of the present-day
Russian economy and politics are rooted in the problem of mistrust of the well-todo
class on the part of the overwhelming majority of society.
It should also be noted that official corruption and growing crime are a
consequence of lack of trust and moral strength in our society. Russia will only
become prosperous when the success of every individual comes to depend not only on
his or her standard of wellbeing, but on his or her decency and culture.
My fellow citizens, esteemed Federal Assembly,
Our country is shortly to mark the jubilee of the Great Victory. We gained
it at a tremendous price, at the price of huge and untold sacrifice. Soldiers in
the Great Patriotic War are rightly called soldiers of freedom. They delivered the
world from man-hating ideology and tyranny, upheld the sovereignty of our country
and defended its independence. (Applause.)
We shall always remember this. Our people fought against slavery, they
fought for the right to live on their land, the right to speak their native
language, to have their own state, culture and traditions. They fought for justice
and freedom. They upheld their right to independent development, they gave a
future to our Motherland. It depends on the present generations -- on all of us --
what that future will be like. Thank you. (Prolonged applause.)
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