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We Live in a Mythical
State(Extracts from a speech in Tolyatti)
By Grigory Yavlinsky, Chairman of the
Yabloko Association
The electoral campaign has demonstrated yet
again that we live in a strange mythical state. We have come
to regard the bankruptcy of state finance as a sign of normal
state management. We are being asked to believe that the economy
is undergoing a slight upturn. At the same time our state's
finances are bankrupt, we have a conventional state budget
and conventional state rule. Our state institutions are in
such a lamentable state that they are incapable of collecting
taxes and controlling finances.
In a bid to retain power, Yeltsin's circle created a party
of governors. They explain to the people that this is the
party of a real "right" power. Why don't they honestly
admit here that although 62% of Russia's budget is being spent
in federation subjects, nobody knows how federal money is
being spent. However, everyone knows about the scale of corruption
in the regions.
I, for example, don't know how we can resolve the problem
of corruption in the current circumstances. First and foremost
I don't know, as I don't perceive any attempt by the authorities
to take steps to resolve this problem.
There are ways to replenish state finances. For example,
regulation of problems at customs. Our country loses annually
$3.75 billion owing to unregulated customs' regulations between
Russia and Belarus. Now we plan to sign a Union Treaty with
Belarus in the near future. This is much more than any IMF
loan. And now we will also have to face the task of strengthening
our already common borders, whereas expenditures are likely
to be financed from Russia's budget.
But I know how difficult this is to do: not a single decision
on issues related to the customs authorities can be taken
without overcoming serious resistance. The people with interests
connected to the customs authorities hinder any attempts to
install order here.
In general we have observed strange things in issues connected
to certain individuals interested in some sectors of our economy.
Today Russia's government is in such a state that it has to
conduct negotiations with the country's largest financial
and industrial corporations, so that the latter fulfil their
fiscal obligations.
We know too well that the issues of tax payments are being
resolved on a case-by-case basis. Instead of complying with
effective legislation, agreements are reached by the government
and the largest corporations on who to pay and how much tax
they need to pay.
I think that we need to create a uniform tax system, which
would inter alia encourage our black economy to become legalised.
But the black economy constitutes about 70% of Russia's economy.
We propose a potentially extremely rapid resolution of the
problem of the black economy, as we cannot expect to make
further progress otherwise.
Russia still survives at the expense of its natural resources.
These resources accounted for 75% of the Soviet Union budget.
The situation has not altered radically since then. We must
make the science and technology branches the main resource
of our future economic development: high precision machine-building,
the instrument-making industry and aircraft building. Only
then will we be able to become one of the most developed countries.
Only them will we be able to resolve the problems of the education,
free health care and public security systems. (Extracts from
a speech in Tolyatti
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