Address of the President of the Republic of Tatarstan, Mintimer Shaimiev, to the State Council

The current state of social development is being influenced by the beginning of global crises at financial and stock markets. We have a growing understanding of the fact that after a period of relatively trouble-free international economic development we are entering time of tests and challenges.

Systemic changes in the work of international institutions and the basis of international financial and economic relationships started having significant effect on internal and external policies of various countries and regions.

It should be noted that negative tendencies of the global economic crisis couldn’t have been foreseen and accounted for when developing “Strategy 2020” – the program of social-economic development of the Russian Federation – and moving towards three-year rolling budgets. Thus the November 5th Address of Russian President Medvedev to the Federal Council of the Russian Federation is first of all a set of systemic measures in response to new challenges both within the country and on the international arena, where Russia has weight as one of the leading states of the world.

Tightening economic conditions define the need to introduce some changes in the long-term development programs of our republic and periods of their implementation. At the same time I would like to stress this will not alter our long-term development priorities. First of all, we are committed to developing into a fully democratic state with high standards of living, based on a civil society with large middle-class and economy based multitudes of industries, which is to be well integrated into all-Russian and International economic systems. Even if currently there is a rather significant crisis effect, we define the prospects of the republic as quite optimistic. The basis for such confidence is successful large-scale social-economic programs implemented in the republic in recent years that proved relevant and vital. In current conditions it is especially important to preserve and further increase the already achieved development potential. We must foresee and within our authority and means timely react to all changes, fully using our competitive advantages. The people of Tatarstan should know that authorities are taking adequate measures, which will continue to be strengthened by concrete deeds. This should also be reflected in the forecast of social-economic development for coming years and the three-year budget that is now being considered by the State Council of the Republic of Tatarstan.

Despite significant external challenges we have faced lately, it must be noted that the passing year was generally characterized by quite a stable development of our country. The political process by and large was defined by the elections of the President of the Russian Federation. It marked the end of defining new configuration of the structure of state authority. Providing constitutional guarantees for freedom of the personality and further democratic development of our society was the first priority, providing social and political stability and continuity was the second one.

Tatarstan had a significant input into this process, as over 79 percent of the electorate on the second of March 2008 voted for Dmitry Medvedev. Such high commitment of the population allows setting objectives and resolving issues of a large scale.

It will not be an exaggeration to say that Kazan winning the right to hold the 27th International Summer Universiade in 2013 is a result and at the same time a symbol of Tatarstan’s many achievements. This decision opens up a new stage in the development of our ancient capital. This Universiade will also serve as a dress-rehearsal for 2014 Olympic Games in Sochi.

I am confident that implementing these set plans will significantly raise Kazan’s attractiveness as one of the prospective cultural, sports and tourism centers of the country, making the capital and our republic in general closer and better known and understood for the entire International community.

Today Tatarstan confidently reached the orbit of federal and International cooperation as a republic capable to initiate very serious, ambitious projects. This was aided by establishing constructive relationships between the republic and the federal center and other regions of our country which are based on trust. Tatarstan is one of the most consistent advocates of federative relationships, a reliable pillar of the multi-ethnic federative Russian state.

Events in the Caucasus once again underlined the importance of the 1994 Agreement “On delimitation of jurisdictional subjects and mutual delegation of powers between bodies of public authority of the Russian Federation and bodies of public authority of the Republic of Tatarstan". The principles set in the Agreement opened up the path towards peaceful, constructive development of relationships within Russia in the critical period and for the future as well. The renewed 2007 Agreement "On delimitation of jurisdictional subjects and powers between bodies of public authority of the Russian Federation and bodies of public authority of the Republic of Tatarstan " that was signed after diligent conciliatory work established significant pre-conditions for further development of our republic.

External relationships and interregional cooperation is becoming an increasingly important factor of the republic’s development. We are stressing not widening international contacts, which we have, but making our contacts more efficient. By strengthening international cooperation in traditionally priority directions – partners from CIS countries, Europe and Central Asia – the Republic of Tatarstan becomes a participant of globalization processes, bringing significant input into implementation of the new Concept of foreign economic policy of the Russian Federation

2008 was marked by such events as visits to Tatarstan by the President of Tukrmenistan, G..Berdymukhamedov, the Prime-minister of Azerbaijan, A.Rasi-zade, as well as the meeting of the President of the republic with the King of Saudi Arabia, that of Prime-minister of Tatarstan with the government of Kuwait and a number of other meetings and contacts with high-ranking officials of a number of leading countries. Diplomatic corps and other official representatives of many countries started expressing increased interest in the republic. Kazan hosted such large events as International forum on Investment issues, jointly prepared with Euromoney financial group, the 16th International scientific conference of the Academy of Sciences of the Islamic World, the International investment conference for the first time organized jointly with the Islamic Development Bank. The results did not oblige us to wait long: Kuwait -Tatarstan investments company which is to concentrate on attracting foreign capital from the countries of the Arab world into the republic is to begin working soon. These unique opportunities must be used both within the framework of the Organization of the Islamic Conference, and the Strategic vision group «Russia – the Islamic world». We must work together with the Islamic Development Bank on making our joint International investments conference in the republic a permanent event, enlarging the circle of its participants to the maximum. The conference might become a special image-making event for Tatarstan.

At the threshold of the 27th Summer Universiade, I believe it would be proper to initiate hosting in the republic in 2009-2012, among others, a series of international youth forums, such as a festival of the youth and students of CIS and Baltic states, international forum of sport journalists, etc.

To touch the economy, prospective work is being done by JSK “Tatneft” on oil-extraction and servicing in Iran, Syria and Libya, a number of large joint projects with participation of leading International companies in the sphere of petrochemistry, mineral fertilizers, innovative projects by JSC “KamAZ” and some other companies. A number of significant projects is implemented with our partners from the European Union and Asia-Pacific, also at SEZ “Alabuga”. We need to strengthen direct contacts with leading regions of the developed countries. We are assured in the fruitfulness of such an approach on the example of diverse cooperation with Saxony.

Noting some progress in trade-economic cooperation with the CIS countries we must underline that our leading companies, with active support of the government authorities of the republic, must not only be present at CIS markets, but take leadership in their segments. We already have such examples.

Interethnic and interfaith harmony is continuing to be the corner-stone, the basis of our social well-being and development.

The State concept of the ethnic policy in the Republic of Tatarstan, adopted in 2008 by the decree of the President of the republic is a concentrated embodiment of Tatarstan experience and our aspirations. It is directed at guarantying social and political stability, development of interethnic harmony traditions, religious tolerance and ethno-cultural enrichment of people residing in the republic.

This document differs from the possible analogues because key approaches of the republic’s ethnic policy were tested against time, thus proving their viability. The Assembly of the people of Tatarstan plays an important role in public life. This is supported by the changed organizational principles, primarily – the work of its local branches and representative offices. Heads of municipalities need to pay great attention to this important segment, because ethnic consciousness and social well-being of our citizens depends primarily on how the issues of ethnic development and inter-ethnic relationships are being dealt with locally.

Today the Tatar world and Tatarstan cannot be viewed separately. Decisions adopted at the 4th Conference of the World Congress of Tatars set main objectives for ethno-cultural development and consolidation of the Tatar people for the next years. The executive committee of the World Congress of Tatars, together with the Federal ethno-cultural autonomy of Tatars of Russia, must continue its efforts in organizational strengthening of the ethnic cultural movement, promoting better understanding of its importance. Preserving ethno-cultural identity of the people, their mother-tongue, system of ethnic education, unique culture, as well as raising young generations to value traditions and customs of ancestors are key elements of the well-being for any nation. Our acts should be guided by these values. Dear deputies!

Analysis shows that we currently, I underline – currently, do not have significant basis for rethinking our expected forecasts: in general enterprises function quite reliably, measures on raising liquidity of the banking sphere are being taken. At the same time, today we are witnessing significant decreases in capitalization of the enterprises and some related anxiety in main sectors of the Russian economy. Individual large enterprises of the country, among them some of ours, are now facing significant drops in demand for their production. As you know, during last years social and economic development of the republic was faster than overall in the Russian Federation. Main development results for the current year are expected to be positive as well.

Economic upturn of the last years would have been impossible without adequate inflow of investment into the economy of the republic. Ratio of investments to Gross regional product for last 3 years reached 28.4 percent, throughout the country – 21.2 percent. During the same period foreign investments grew by the factor of 3.5, reaching 1.68 billion USD. At the end of 2007 the Republic of Tatarstan was sixth among the subjects of the Russian Federation by amount of investment into capital assets.

This year we managed to reverse the tendency of decreasing share of added value in the production of goods and provision of services. It grew at a rate of 10.4 percent in comparable prices. This is a foundation for establishing financial basis for increasing the income for population and implementing social programs.

Another reserve for increasing value added is in replacing imported goods and services by the local ones. Despite favorable structure of foreign trade balance, its disproportional growth (over 40%) and the structure of imports represent potential threats. This is especially true for machine-building – this industry has both subjective and objective inertia. Work on new developments and new production will not be made easier even if I say that it is time to start undertaking large-scale projects. Crisis is not an excuse, we have to think about the days to come.

We should be aware that at times of crisis developed regions suffer most. This is also true in our case. Not to mention oil prices going down, we, as a republic exporting lots of petrochemical and machine-building products, can loose much as a result of downturn in world economy. We take billions in loans from international and domestic banks when Implementing large investment projects. Certainly, our large companies, together with the government of the republic and the federal authorities are undertaking all measures to soften possible consequences. We’ll have to slow down, sometimes put on hold, and avoiding beginning construction of new objects without express need. Every construction request will undergo a study, and decisions will be made by the Prime-minister or, upon his proposals, by the President of the republic. Programs previously adopted by the State Council and the Government, might be rescheduled based on financial possibilities. I foresee a possibility that developments in the financial situation and implementation of the first half 2009 budget might lead to proposals by the President of the republic to correct individual development indices.

Addressing the tasks ahead will need most serious concentration. Economic crisis requires Tatarstan to demonstrate not only flexibility and ability to support the achieved quality of life of its citizens, but also the capacity to meet current challenges with adequate and effective measures. I am confident that we will succeed because we are well-educated, hard-working and united. Bez belemle, eshchan haem berdaem! (In Tatar) We can – Bez buldyrabyz (In Tatar). Thank you for your attention!

Ightibaryghyz oechen raehmaet! (In Tatar).