On situation in the republic and main directions of social and economic policy in 2003

2002 was in many respects a turning point. Tatarstan is completing the process of harmonization of its legislation with the federal one, preparing an updated Treaty with the federal centre, looking for certain changes in the structure of the State Council, expanding the sphere of local self-government. All these will demand new forms of work of all levels of authority, including the Administration of the RT President.

Last year we amended the Constitution of Tatarstan. Now our main objective is to sign an updated Treaty between Tatarstan and the federal centre and later hopefully to complete the process of harmonization of the republican legislation with the federal one. The process of harmonization was necessary, but changed into a unilateral campaign - the laws of subjects were brought to conformity with federal, whereas infringements in the federal legislation itself were omitted, to put it mildly.

Thus some politicians keep their desire to come back to the unitary state, forgetting about the federal structure of Russia. In this connection we have to affirm that we always supported federalism and can not give it up.

Tatarstan as the most consecutive supporter of federalism carries the responsibility for preservation of democratic principles in the Russian society. From this point of view, an unchanged status of Tatarstan is in many respects connected with the understanding of necessity and inevitability of federalism in Russia. This is the price of the issue.

Mass media is still discussing the issue of legitimacy of the Tatarstan sovereignty. I must say that no serious scientific work and no author, including members of the Constitutional Court of the Russian Federation, deny limited sovereignty of states - federation subjects. The Constitution of the Russian Federation treats the republics as states, and it is well-known that all states have sovereignty. No matter what federation it is - USA or Switzerland, a federation subject is considered sovereign within the framework of its powers. It might be the time for Russia as well to recognize that the federation is constructed on the basis of shared sovereignty, i.e. on precise division of powers between the centre and subjects.

This year we shall have the elections to the State Duma, which should be approached in all seriousness. Not always our deputies vote in Tatarstan's interests. It can not suit us. Our active participation in the party "United Russia" is dictated by the necessity to assert Tatarstan’s interests at the decision-making stage by forming an influential deputy group from our republic in the State Duma.

Last year there were serious events in the sphere of interethnic relations. First of all, it is necessary to mention the population census which agitated many people. Without the consent of the republic and without taking into account the opinion of the World Tatar Congress, the federal structures divided the Tatar people into several groups and even singled out independent peoples.

The population census put the question of unity of the Tatar people. Tatars cannot be viewed as an unstructured mass, which might be pulled into pieces in order to create new peoples. There are indeed regional features of Siberian, Astrakhan and other ethnographic groups, there is confessional specificity of Kryashens, but every people has such phenomena, including Russian people among which it is possible to distinguish pomors, cossacks and others.

It is impossible to neglect the specificity of Kryshens or other groups of Tatars, it is necessary to do our best to satisfy their spiritual needs, but it would be a mistake to take any feature and especially religious distinctions as a nation-dividing principle.

In this connection, it is difficult to overestimate the role of the third meeting of the World Tatar Congress, which clearly supported the unity of Tatars. Scientists, public figures, journalists, media leaders should think of more effective forms of work to consolidate the nation.

The census in the republic passed with an active and responsible participation of the population. It showed that the population of Tatarstan increased by almost 4% compared to 1989. We are pleased by the fact that for 2002 the demographic situation in the republic improved significantly and we may expect a positive tendency in future.

It is impossible to overlook the issue of transition of the Tatar language into the Latin script. This decision was based on the resolution of the second meeting of the World Tatar Congress and conclusions of the scientists of the Tatarstan Science Academy. It is in agreement with article 68 of the Constitution of the Russian Federation, according to which the state "shall guarantee to all of its peoples the right to preserve their native language and to create the conditions for its study and development" and gives the republics "the right to establish their own state languages". By approving the amendments to the law of the Russian Federation "On languages of the peoples of the Russian Federation" the centre has actually broken its own Constitution and several international norms, in particular, the European frame Convention on minorities. Such a step can be considered an encroachment on the peoples' right of free development of language. We may discuss a question of timeliness of the transition to Latin, but not challenge this right. Moreover with such amendments the Federal Assembly interfered into the special powers of the federation subject. All these infringements occur in the situation of absence of clear national policy, meeting the norms of a democratic federal state.

Mass media with participation of the Education Ministry of the Russian Federation vehemently discuss the theme of introducing Orthodoxy as a school subject. Is it really possible to introduce religion as an independent subject in a secular, multiconfessional state? Who wanted to create this problem when the world already feels growing tension between different faiths? If such a decision is accepted, we shall have to introduce lessons of Islam, Judaism and other religions. Though it would be more reasonable to leave these to clergy, and at school to teach bases of world religions.

Preservation of the atmosphere of trust and mutual respect in the difficult situation of the last decade is the main condition of well-being and prosperity of Tatarstan, in which Muslims and Christians play a special role. It is necessary to remember that interethnic and interconfessional peace and consent are our precious possessions. They have a proven historical basis and are supported with purposeful political activity in the name of preservation of mutual understanding in society. Therefore in modern conditions, the responsibility of politicians, religious figures and journalists for any related word or action increases grows progressively.

The bills considered by the State Duma and developed by the Commission on differentiation of powers to the President of the Russian Federation assume further intrusion into the powers of subjects. If these bills are passed, an additional part of powers of subjects will pass to the centre, which is already overloaded with them, and other part will pass to the local government. Being aware of the way the Federal Assembly passes the bills, we should be ready for this variant.

Transition to self-government at the level of cities and areas seriously challenges all state authorities. Elections to the bodies of self-government should pass in the interests of people, not individual political groups or arrogant politicians. Such changes should not cause damage to the local economy and well-being of the population.

Mass media should be ready to changes in political life. Broadcasting company "Tatarstan - new century" is coming to be a full-scale channel and we need to support it in every possible way. State Broadcasting Company "Tatarstan" is successfully adapting for work under the new conditions. We are certainly pleased by the fact that new magazines and newspapers are being created in the republic.

Freedom of speech is our firm principle, our undoubted achievement. But it presupposes awareness of our influence and responsibility for the formation of the young generation. We get many indignant letters from parents who are worried about the education of their children. Most central TV channels broadcast horror films, forming the cult of violence and sex. Unfortunately, this is the feature of several our commercial channels, starting from the TV channel "Efir". The state can not ban such TV production, but the society and journalists in the republic can and should aspire to form moral norms in respect of traditions and confessional belonging of our peoples.

In 2003, our major task is to provide a decent level and quality of life of the republican population.

In January-December 2002, the real money income of the population of the republic exceeded 111% to the year 2001 (in the Russian Federation in general – 109%). Average wage amounts to 3855 rubles and grew by 27,5% compared to the last year.

Unfortunately, echoing the general trend throughout the Russian Federation, in 2002, the arrears of wages did not come down despite all taken measures. Unlike the majority of regions, in our Republic the arrears of wages mostly fall to the share of the industrial sector, with half of it in the agroindustrial complex. According to the decision of the Russian Federation Government, in the near months, the agricultural sector will carry out a procedure of debt restructuring – we have to take all benefits of it. It is necessary to increase the individual responsibility of employers if they fail to observe the wage payment terms. The controlling and supervising authorities, trade-unions should exercise all measure of legal control over the negligent employers who violate the labor legislation with regard to the timely wage payment.

In 2003, the system of wage payment in the budget sphere will be reformed. Regarding this issue, the reformation will be coupled with the increase of payments and changes of the wage tariffs. An average wage in the Republic will grow up to 4,650 rubles.

Successful implementation of the pension system reformation launched in the Republic in 2002 is one of the main priorities of our social policy. An average pension increase this year is predicted at 260 rubles.

In 2003, Russia started the reformation of its housing sector. In 2003, the system of financing of the housing sector is to be changed and targeted address housing subsidies are to be set up with the use of personified (name/nominal) citizens’ accounts. The approaches in the sphere of tariffication of the housing services should also be changed with the view to establish economically valid rates of expenses regarding all kinds of services.

It is also important that all decisions in the sphere of housing reform should be made with allowance for the population paying capacity. A standard amount a family pays for housing services is established in Russia at the rate of 22% of the family income. In Tatarstan, at the expense of the budget compensation this standard will amount to 16%.

During the reform, the Ministry of construction, architecture and housing, administrations of cities and regions should focus on the quality of services. The Kazan administration bears a special responsibility as it was chosen among several other cities of Russia to become an experimental field for the housing reform.

In the sphere of construction the last year is marked with the beginning of exploitation of the bridge across the Kama and the base complex of the Nizhnekamsk Refinery.

In 2002, more than 1,5 mln square meters of living space were built in the Republic. According to the Program of liquidation of decrepit housing, 340,000 square meters of new living space were commissioned, including 210,000 sq. m in Kazan. In 2003, within the framework of this program the 4,917 of families need to be provided with comfortable dwelling, including 3,547 families in Kazan.

The positive results of the program implementation are also worthy of mentioning. The Republcan Government should take all the necessary steps in order to finish successfully this unique program in 2004.

Simultaneously, the program of mortgage housing building is to be prepared already during this year as well. This program should be available to the population with average level of income.

The long-awaited Kazan 1000 anniversary is approaching. Taking the prospective scales of construction buildings into account, we are pressed for time. That is why I would like to focus the attention of the Republican Government and Kazan Administration at the necessity of maximum concentration on the priority objects, as well as improvement of roads, yards, houses, facades of buildings. At present, the restoration of the Theatre of Opera and Ballet named after M. Jalil is unsatisfactory regarding both – speed and quality. The most important social object is an interregional clinical center of diagnostics. It is also necessary to speed up the priority works within the framework of preparation to the 200 anniversary of Kazan State University.

In 2002, the gross regional product rate increased by 1% in comparison with the year 2001. By results of 2002, the industrial enterprises of the Republic produced the commodities to the sum of 218,6 billion of rubles, production growth within the comparable prices amounted to 100,8 %.

The fuel industry enterprises still possess the most considerable weight in the overall volume of industrial production in the Republic. In order to rise efficiency, the majority of leading republican enterprises aim at reducing the production expenses, also within the framework of the energy-saving Program. As of the end of the year, the profit of industrial enterprises was 31 billion rubles, 86,8% of the 2001 profit. In conditions of new federal tax legislation and growing tariffs all regions have decreasing profit.

Without taking the fuel industry into account, the amount of profit increased by 14,6 % in comparison with 2001. This means that the price conjuncture of the oil market had a considerable influence on the year’s results.

According to the preliminary data, unprofitable enterprises make about 4% of the total volume of industrial production. But many of these enterprises produce consumer goods. We must work with such enterprises and support them.

In 2003, the growth rate of the industrial production volume is forecasted at 103,5%. This growth will be characteristic of chemical and petrochemical enterprises - "Nizhnekamskneftekhim", "Nizhnekamskshina", "Nefis-kosmetiks", "Kazanorgsintez", "KAMAZ", "Alnas", "Zavod Elekon", "KAPO im. Gorbunova", "Zavod im. Sergo", "Kazan Helicopeters ", "Kazankompressormash", "PO Tatspirtprom" and several other enterprises. "Tatneft" also has an opportunity to increase considerably its sales volumes. Evaluating the possibilities of further progress of industrial enterprises, it is necessary to continue reforming the organizational structure, creating short- and long-terms development programs, new approaches to financial flows and staff management, marketing policy, purposeful production expenses decrease.

Primarily, it concerns such enterprises as "KOMZ", "Almetievsky Trubny Zavod", "Santekhpribor", "Tatkhimpreparaty", "Melita", "Safian", "Spartak", "Kazansky textil", "Zelenodolsky Fanerny Zavod" etc.

The production volume growth is important, but is not a final goal. The main task at present moment is to receive a maximum profit which may be carried out only by the enterprises with competitive goods and commodities. As before, the development of agro-industrial complex in 2002 was among the main economic priorities of Tatarstan and allowed achieving stable results in agricultural production.

Tatarstan ranks among three leading regions of the Russian Federation by the level of grain, meat, and milk production. The total grain harvest was 6 million tons with the productivity of 35,4 centner per hectare. The meat production grew by 3,5 % in comparison with 2001, milk production - by 9% and eggs production - by 5,1%. Food and food-processing enterprises were developing steadily.

Today our major task is to organize the agricultural business by means of resources-economy and to reduce production prices.

We should further radically change the forms of management and property. The property should be largely private, with a real owner of land and other means of production.

We have to pay special attention to further extending peasant farms, which in 2002 produced 74% of vegetables and 85% of potatoes. They gave one half of meat production, 42% of eggs and 36% of milk.

One of the most important instruments of purposeful state assistance to the development of economy is the Federal Target Program “Social and cultural development of the Republic of Tatarstan up to 2006”, which was adopted by the Russian Federation Government in August 2001. As a result of its implementation, a gross regional product increase is supposed to exceed 20% in comparison with 2001. The supplementary work places will be provided, the payment in budget will grow at all levels.

In 2002, the Federal budget gave 100% of the provided funds for the implementation of the Federal Target Program. The Republican budget financing of the Program amounted to 137%. On the contrary, a part of the Program providing for the implementation of commercial projects at the expense of participating enterprises inner sources and bank credits has been implemented only by half. In 2003, the Cabinet of the Republic should analyze thoroughly all the parts of the Program and accomplish their unconditional practical implementation by all participants.

As a result of the privatization held in the Republic, the number of state enterprises - subjects to privatization is approximately 2,000 or more than 75% of all. Thereby, the Government of the Republic still remains a prominent owner and shareholder, still owns the control stock of enterprises shares and plays a leading role in the basic economy sectors.

In this connection, the issue of the effective use of the state property becomes crucial.

According to the data of the inspections held by the Control Board of the Presidential Administration of Tatarstan, 164 stock companies in 2001 had clear profit, but only 48 enterprises made a decision to pay dividends to the state share holding.

Today, the state ownership of the Republic of Tatarstan includes 1100 state unitary enterprises and 650 state share holdings. The Government of Tatarstan should adopt a list of state unitary enterprises and share holdings of stock companies, which are of strategic importance and remain part of the state ownership. Their number does not exceed 100. With respect to all other enterprises, the managing decision should be made with regard to their privatization, reorganization, liquidation, insolvency procedures launching (wherever is necessary) , as well as realization of the state share holdings.

Another priority is creation of a republican system to involve economically idle lands into practical use and turn them into an inner reserve for financial recovery.

The Republic has accumulated certain experience of the real-estate professional management, which should be further perfected.

The Land Code of the Russian Federation entered into force and marked a fundamentally new phase of the market changes in the land sphere.

Owing to the republican legal base, which was prepared in advance, we succeeded to achieve good indexes in land privatization. 23,600 hectares of the total value of 1,4 billion rubles (the plan previewed 150 million rubles) were bought by privatized enterprises and real estate owners. The number of land owners increased by more than 3,000 (today their number exceeds 1 mln).

The task for 2003 is to complete formal re-registration of the rights of land ownership and rent, to continue delimitation of the State land ownership.

The major task of the state policy is the stepwise solving of the urgent problems concerning small-scale business development. It is well-known, that a simplified taxation system for the small-scale enterprises and individual businessmen, whose profit amounts to no less than 15 million rubles, was launched since the beginning of this year. The new legal acts on licensing and small-scale enterprises examination rules are implemented since February and April of the last year. This is aimed to support the small-scale business and to debureaucratize state administration. The system of small-scale business crediting is gradually arranged, both State and banks are engaged in this process. 10 million rubles are used for the short-term and other credits of businessmen in 2002. 9,000 credits were given. There is no lack of credit resources in the Republic, investments from the population amount to 21 billion rubles. During the year period they increased 1,5 times.

The protection of business and property from the red tape, natural and local monopolies, large-scale enterprises still remains a crucial issue. Any ownership should be inviolable, and its protection is a duty of authorities and bodies of justice.

In current situation, the focus on quality is the only possibility to succeed in the world of intensive competition. Only 58 enterprises of the Republic had certified their quality systems according to the ISO-9000 international standards. It is insufficient for us. At present it is the certificate confirming the compliance of the work of enterprise with the international standards, that serves as determining factor to conclude contracts and is an effective instrument to insure the quality demands.

2004 should become a key-year in adjusting the Tatarstan economy to the innovation way of development. The Ministry of Economy and Industry, other ministries and departments in cooperation with the Academy of Science of Tatarstan as a research-coordinating body should fundamentally change the character of their activity and channel their efforts onto the acceleration of the scientific results use in the prime economic sectors.

In recent times, the volume of the machine-building and metal-working production in the Republican industry exceeded 40%, and in 2002 amounted to 23%. The enhance of the competitive engineering production output is to be become one of our major tasks, which is absurd without innovations.

For these purposes we need to engage the small-scale innovation companies, scientists, students, who have perspective projects and ideas, which have no access to the equipment, production area and financing and thus may not be implemented. In order to create an optimal infrastructure for their activity, we shall create an innovative and producing technical park “Idea”, which will include an internet-center containing the library of various scientific publications, a target training system and production internship of student and young scientists, etc.

Information and telecommunication technologies provide the realization of the citizens’ rights of access to the world achievements and media resources, such services as distance education, telemedicine, electronic commerce, Internet and cable TV, etc. Therefore, in 2002, I gave a task to create the “Bases of the State Policy of the Republic of Tatarstan in the sphere of Informatization and Communication for 2003-2007”. In January 2003, this document was approved by the Security Council of Tatarstan. The work is planned for 5 years and intensive implementation will start this year.

The social-economic development forecast for Tatarstan for 2004 will be drafted starting this May. Regarding the medium-terms development of the Republic, the growth of the gross regional product at no less than 3% should be previewed, as well as the decrease of the inflation level from 12% in 2003 to 10% in 2004.

The budget policy priorities for 2004 include continuation of the activities launched in 2003 and aimed at extending the taxable base and budget expenses optimization.

The inspections of 2002 revealed no-purpose and unpractical use of the budgetary by certain ministries, departments, municipal and regional administrations for the sum of 1 billion 150 million rubles.

The inspections held by ministries and departments revealed a number of violations in the observance of procedures of products purchases for state needs: the legal norms were not always observed properly, although they regulate a competitive auction system; the purchases from a single source predominated. Serious violations were revealed in the organization of the state purchases in the Ministry of Education. According to the results of the inspection, two deputy ministers were dismissed. There also were numerous misuses of local budgetary funds in the process of concluding state and municipal contracts in cities and regions. We expect that the Government of the Republic, Ministry of Finance and Department of Treasury will not allow such violations in future. When we consider budgetary expenses, even the State Council may not stay apart.

During 2002, the overall assets of the republican bank sector increased almost by 42% and amounted to 63 billion rubles.

The total sum of credits grew 1,4 times and by January 2003 reached nearly 40 billion rubles. By the overall credit sum and quantity of credits to economy Tatarstan holds the leading position in the Volga federal district.

The volume of the consumers credits to citizens, including young families, increased 2 times during 2002 and amounted to 3 billion rubles.

Special attention should be paid to the mortgage crediting market development, simplification of the process of consumers credits allocation and adoption of international financial accounting standards by our banks.

The Presidential Decree of November 19, 2002 approved the Federal Program of “Reform of State Service of the Russian Federation (2003-2005)”. The State Council of the Republic adopted a new law of Tatarstan “On State Service”. The Republican Commission on reform of state service headed by the Prime-Minister of the Republic was created as well as inter-department working group headed by the Head of the Presidential Administration.

According to these documents, heads of ministries, departments, municipal administrations should guarantee that state officials meet relevant requirements.

The problem of specialists remains sharp and unfortunately affects various sectors of economy. In recent years, the number of university and high school graduates increased, but very few of this specialists start working at enterprises. There is a lack of engineering professions skilled workers. Therefore, we have to consider the experience of “Nizhnekamskneftekhim”, “Orgsintez”, “KOMZ”, “Vostok”, as well as “Kazan Helicopters” and “KMPO”. These companies create the departments of leading universities at their enterprises.

Speaking about the activity of the highest executive body – the republican Cabinet, we should mention its professional efficiency. However, its strategic decisions often lack proper preparation and legal validity.

With regard to the forthcoming State Duma, Republican State Council and local elections of 2003-2004, delegates of all levels should be especially active and efficient in all spheres of social life and within their constituencies.

It is too early to speak about the Presidential elections of 2006. There is only one thing to tell those, who hurry things up: the road is very long, it is easy to stumble and fall. In order to avoid it, everyone has to concentrate on his responsibilities and carry out his part of work in interests of the whole multinational people.

Life poses problems of ever growing importance and complexity. We may be confident that we shall successfully solve them, having the trust and support of our industrious people.