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В.Путин.Прямая линия.24.12.01.Part 1

Live with President Vladimir Putin - Hot Line (excerpts)Part 1
December 24, 2001
Moscow, Vladivostok, Yekaterinburg, Kazan, village of Kazache-Malevany (Krasnodar Region), Kaliningrad, Novosibirsk, Murmansk, Rostov-on-Don, St Petersburg

Прямая линия с Президентом России
24 декабря 2001 года
Москва, Владивосток, Екатеринбург, Казань, хутор Казаче-Малеваный (Краснодарский край), Калининград, Новосибирск, Мурманск, Ростов-на-Дону, Санкт-Петербург

SERGEI BRILEV: The year is drawing to a close. Are you pleased with its results?

VLADIMIR PUTIN: To answer that question we have to recall what goals we set ourselves at the beginning of the year, in January.

We faced several tasks. Basically they were as follows.

First, sustaining the positive trends of the Russian economic growth and using that as a basis to improve the well-being of the people and create conditions for positive national development in the medium term.

And if we look at what we have at the end of the year, the results are as follows.

We planned an economic growth of 4%, and it turned out to be 5.5%. The final figures will be known late this year and early next year.

Industrial output has increased by 5.2%, and agriculture has performed even better. In general I would like to congratulate our agricultural workers because this year they set a record of sorts. And I am not speaking about the grain harvest, which is 83.7 million tons this year. We havent had such a harvest in years. And if you look at the dynamics, they are even more impressive: three years ago we had 48 million tons, two years ago 55, last year 64.5, thats about 65; and this year 83.7, almost 84 million tons. But what is more important is that according to experts (but that will probably need to be verified) the yields per hectare have been the biggest in the whole history of Russia.

Now for the main thing, peoples incomes. The picture is as follows.

Incomes have been growing steadily since last year. Last year they grew by 6% and this year by 6.5%. Average wages, and I stress, average wages, increased by 2021%.

Let me note from the start that the growth has been less for the military and the public sector employees. In general, our economy employs 60 million people, of whom 10 million are employed in the public sector. Public sector employees had only one 20% increase in January this year, but this year we have been paying back wage arrears for previous years. The federal budget has earmarked twice as much money for that purpose than last year. Early in the year, in January, wage arrears to public sector employees stood at 3.5 billion rubles. They have now dropped to 1.5 billion.

The number of unemployed has dropped significantly from 11.1 to 8.9%, that is, by one and a half million people. In short, the figures are significant.

The Central Bank has increased its gold and currency reserves. The ruble has grown stronger, although we have failed to meet the targeted rate of reducing inflation. It is lower than last year but it falls short of the budgetary target.

All that has apparently brought about a psychological change because we still have a positive birth rate trend. While the demographic situation overall is negative, the birth rate has increased. It shows that the so-called planning horizon has increased for the government, for individual companies and for individuals and families.

Of course, there are a lot of outstanding problems and peoples living standards are still very low, if you look at pensioners, it is still very low. Having said that, the pensions have increased by a record 23% this year. I am giving you real figures because the formal figures are still higher, 40-50%. But the real figure adjusted for inflation is a 23% growth of the incomes of pensioners. Even so, living standards remain quite low. But the trend is very positive.

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