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В.Путин.Послание ФС РФ.16.05.03.Part 5

Annual Address to the Federal Assembly of the Russian Federation.Part 5
May 16, 2003
Marble Hall, the Kremlin, Moscow

Послание Федеральному Собранию Российской Федерации
16 мая 2003 года
Москва, Кремль, Мраморный зал

For the first time in the last fifty years, Russia went from importing grain to exporting it. Since 1999, exports of Russian foodstuffs have tripled.Exports of oil, petroleum products and gas rose by 18 percent, and Russia today is one of the worlds biggest energy exporters.Information technologies have developed at a fast pace. The new economy is on the increase in Russia with its output growing at a rate of 20-30 percent a year. The number of people in the country with telephones has gone up considerably, and the number of mobile phone users has doubled every year and has now reached almost 18 million. Estimates show that around 10 million people in Russia use the Internet.These figures show that it is possible for us to achieve balanced economic growth based on both traditional sectors and modern technologies.This growing economic potential has brought improvements to the lives of tens of millions of people. Thanks to this economic growth, almost four million people have left the ranks of the unemployed and found new jobs over these last years. The new opportunities to work and earn a living have also meant there have been fewer and not such large-scale strikes. Almost 900,000 people took part in strikes in 1997, while in 2002 that figure was down to less than 5,000. And this result has been achieved at a time when trade unions are becoming more, not less active.Real personal incomes have increased by 32 percent. Three years ago, the average pension came to 70 percent of the survival minimum set for pensioners, while last year it reached the survival minimum level.Finally, per capita consumption rose by almost a third over the last three years. Last years per capita consumption result was not just higher than that of the crisis year 1998, or than that of pre-crisis 1997, but was higher than at any time in Russian history.Of course, this list of dry figures might seem not very comprehensible, but I am sure that you understand what these figures mean. These results represent considerable resources that have become genuinely accessible for millions of our citizens. These resources have helped improve peoples living standards, given them better healthcare and made it possible to find solutions for the complex social problems the country faces.But at the same time, despite these positive changes, we are forced to admit that the economic results we have achieved are still very, very modest.
First, we still have a quarter of our citizens with incomes below the survival minimum. A quarter of the countrys population!Second, our economic growth is still very unstable. In 2000, industrial output rose throughout the whole year, but in 2002, it showed an increase only for a total of six months and as a result, unemployment began to rise.Third, the economic growth rate is slowing down. In 2000, we enjoyed growth of 10 percent, but by last year the growth rate had slowed down to only slightly more than 4 percent. A lower growth rate inevitably also slows down the rate of social development and prevents us from resolving many of the other problems we face.We also must recognise that Russia owes its economic growth above all to the favourable world economic situation over recent years. An unprecedented improvement in foreign trade conditions for our economy gave Russia considerable economic advantages and brought in significant additional revenue. Part of this money was spent on improving living standards for the population. Part of it was invested in the Russian economy, and part of it went towards servicing our state foreign debt. We have reduced this debt by a quarter. Finally, these additional revenues also helped us build up our reserves, those of the Finance Ministry, the Central Bank, and the Central Banks own gold and currency reserves that have now reached a record figure of $61 billion after totalling only $11 billion three years ago.I think it is clear that without these revenues, without this favourable foreign economic situation, our social and economic development results would have been a lot more modest. And we must not forget that this kind of favourable economic situation cannot and will not last forever.In this respect I would like to draw your attention to another problem. The states total annual social spending commitments now come to 6.5 trillion roubles. This is almost double the countrys consolidated budget. Over the years, the executive and the legislative authorities have promised people far more than the Russian economy can actually deliver.

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