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Д.Медведев.Послание Федеральному Собранию РФ.12.11.09.Part 3

Presidential Address to the Federal Assembly of the Russian Federation.Part 3
November 12, 2009
The Kremlin, Moscow.
Dmitry Medvedev delivered his Presidential Address to the Federal Assembly.

Послание Федеральному Собранию Российской Федерации.
12 ноября 2009 года
Москва, Большой Кремлёвский дворец

We have been providing direct support during the crisis, direct subsidies to Russian companies, and this money comes to more than 1 trillion rubles now. In the future, we will provide such support only to businesses that have clear plans for raising effectiveness and carrying out high-technology projects. Ineffective companies either have to go through a financial cleanup procedure or leave the market. Protecting them by setting up high trade barriers cannot continue forever. Production can develop only when we have real competition. Russian consumers need to have access to inexpensive quality goods. The task for Russian companies is to learn how to produce them.

I note in particular the successful implementation of the state programme for agriculture sector development. As a result, agriculture is showing higher growth than any other sector, even during the crisis period. We will continue our rural support policy. We have all the right conditions for making agriculture one of our economic growth leaders for the years to come, and this in turn will improve the quality of life in the countryside.

Of course, the best anti-crisis policy is to encourage private demand. Some steps have been taken in this direction, but this is still not enough. I instruct the Government to draft additional measures for supporting consumer loans and expanding housing construction.

There have been many proposals for increasing investment in infrastructure. This is understandable. Infrastructure in our country suffers from a lack of financing. But so long as basic order has not been brought to this sector and construction is carried out using vastly exaggerated cost estimates I think that spending more money on these projects would be a luxury we cannot afford. I instruct the Government starting next year to introduce new procedures for tenders in this sector, including using electronic technology, and to bring the technology and costs of building roads and other infrastructure sites into line with world standards. We should examine the possibility of using the relevant European Union norms in order to draft more rapidly our own construction regulations, because this is something that has been dragging on for too long here.

We have paid a lot of attention to supporting the financial system over these last months. The banking system is in a satisfactory condition today, taking the crisis year into account of course. Lending is starting to grow again and the amount of overdue debt has stabilised. Now that inflation has come down and the currency market has stabilised interest rates are also gradually starting to fall. The Central Bank is now playing in full its part as lender of last resort. But from the innovative development point of view the financial sector is still weak. It has insufficient capitalization and is not able to provide a full range of needed services to our people and companies. The Government should present a programme of specific measures for improving the financial system and making it able to meet the demands of our economys modernisation.

I think that overall, the Government, the Central Bank, and the regional authorities, with the support of legislators at all levels, have succeeded in stabilising the situation in the economy and social sphere.

But I hope that everyone here realises that this revival on the markets is still very weak and unstable. The most dangerous thing now would be to start telling ourselves that all is well. We need to continue carrying out our anti-crisis programme and be ready to act fast to take additional measures.

Deputies and members of the Federation Council,

We have a duty to heed the lessons of recent events. So long as oil prices were growing many, almost all of us, to be honest, fell for the illusion that structural reforms could wait and that what was important now was to make maximum use of the high prices. The priority was on pushing ahead the old raw materials economy, while developing unique technology and innovative products was the subject of only random individual decisions.

But we can delay no longer. We must begin the modernisation and technological upgrading of our entire industrial sector. I see this as a question of our countrys survival in the modern world.

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