| Existing economic mechanisms only achieve the
very narrow goal of maintaining the present [economic] level,
but fail to provide for medium-term economic growth. In terms
of solutions to the main problems facing the country, the economic
system has been in a state of decline and has been slow to curb,
despite current growth, the country's problems that have been
snowballing .
The structural imbalance in the economy has been growing. Despite
relatively satisfactory growth rates for the past three years,
GDP still amount to only 75% of GDP in 1990. The apparently perceptible
20% investment growth in 2000-2001 has been hampered by equipment
obsolence. (The average age of equipment is 18 years: in addition
35% of equipment has been operational for over 20 years).
The country has to date failed to develop an efficient banking
system and financial market: consequently we have witnessed no
investments in this market. The Central Bank, Finance Ministry,
Pension Fund and even Russian citizens dispose of fairly significant
financial reserves. However, existing economic mechanisms fail
to transform these resources into investments.
Furthermore, the general situation in the country could not
be termed investor-friendly. Xenophobia and nationalism have gradually
evolved from latent phenomena into overt aggression. Government
draft laws submitted to the Duma for adoption this autumn, that
call for a review of all existing subsoil licences, also demonstrate
"stability" in the country. Finally, one of the top
managers of the largest oil company in Russia and the world simply
disappears in broad daylight (Ed. this is a reference to the kidnapping
of Sergei Kukura, financial director of Lukoil).
The existing economic system can maintain at a modern level
only 25-30% of the population of the country and one large city
- Moscow. The rest of the country and citizens - about 70-80 per
cent - live the same lives as in the past.
Another mini-budget presented by the government for the next
year fails to even start resolving the main problems: reform of
the security system, education, health care, army, housing and
the communal services sector, incomes, a fall in unemployment
and a halt to the demographic decline. It is crystal clear that
these problems are not simply stagnating: the situation in all
these sectors has been deteriorating.
Nevertheless, we assert that it is possible to render tax and
budget policy more efficient, even with present capacities, to
profer hope to entrepreneurs, increase budget revenues and finally
find additional resources to cater to the social needs of the
people. We have submitted our proposals to the President and the
Government.
In general the country does have a chance. But it depends on
the political will of the President, rather than oil prices.
For ten years we have been reading "The Moscow Times".
Your paper has a distinctive voice, you are both clever and objective.
You are trying to treat the most painful and acute problems of
the country with care and understanding. "The Moscow Times"
would appear to be the most professional political newspaper in
Moscow.
See also:
Budget
for 2003
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