Murtaza Rakhimov : Our goal is prosperity of people and augmenting of creative potential RB

President RB Murtaza Rakhimov has taken the floor at today’s 12th meeting of State Council-Kurultay-RB with the annual Message to the deputies of State Council RB. The Message is called “Our goal is prosperity of people and augmenting of creative potential RB”. The text of the Message is given briefly below:

“Dear deputies! In accordance with the article 87 of the Constitution RB I am addressing myself to you with the regular Message. The constitutional practice of the Messages makes up 15 years and every previous Message was approved in definite conditions, peculiar for that time, that strategy and tactics of the solutions offered. 2009 is not an exception too. We are working in the period when the country and the Republic face powerful manifestations of the global economic crisis. We are not able to predict all its after-effects either at the global or at the regional levels. This is not just the problem N1 for Russia and every region in its staff but serious challenge for the authority. No ready receipts against the crisis exist in the world so our resoluteness and coherence of our actions acquire paramount importance.

I would like to say that the crisis sharpens the question concerning straightening of efficient management system. For Russia the tying of strict power vertical with the corresponding horizontal line in the regions plays the vital role. This combination determines the final strength of the state. This optimal combination of vertical and horizontal systems may be called real federalism, a sort of public contract. The unity of the country is based on Russian patriotism, based in its turn on patriotism of “small motherland” of every region, on national cultures, languages and traditions.

We can overcome the global crisis only with the help of joint efforts and at that realization of strategic solutions of economic and social character is running in our regions, cities and villages. Today we especially need mutual trust between authority and population, between federal center and its regions. Our future depends upon potential and capacities in the regions, upon deliberate distribution of competences between the center and the federation subjects. The essence of our strategy is that uniting the efforts of the state and our society we are able to overcome the crisis not just with the minimal losses and with preservation of our main achievements and social guarantees but with new strength and new quality of economic progress. Republican economics must leave the crisis renovated and stably moving towards innovational way!

Dear friends!

The margin of safety and competitive advantages play important role in solution of new tasks and Bashkortostan possesses enough such advantages. This is first of all powerful scientific, industrial, agricultural and personnel’s potential, stable financial system and well-developed consumer market plus very favorable geographic position, external economic relations and high investment and credit ratings.

All abovementioned is proved by the results of our progress in 2008. This progress is characterized by preservation of stable tendencies. The gross regional products has exceeded 800 billion rubles – this is by 8,1% more than in 2007. Industrial production has grown up by 9,2% and by this showing Bashkortostan demonstrates better dynamics than in Russia on average during more than four years. The growth in agricultural production makes up 3%. We’ve gathered the record harvest in 2008 – more than 5 million tons of grain.

The volume of building works has increased by 4,4%. 27,9 thousand flats with the total area 2 million 352 thousand square meters have been built up. This is the best result for the last 19 years. By this showing we are found on the first place in Volga federal district. The retail trade turnover has grown up by 19,1% and here Bashkortostan also leads in Volga federal district, staying in the Top 10 of Russian regions. The external trade turnover balance makes up more than 9 billion USD and this is 19,7% more than in 2007.

In a whole the situation in economics and social sphere RB allows us having very substantial margin of safety, successfully withstanding the present crisis phenomena. Structural reforming, diversification of economics, launching new productions and mastering new technologies contribute to that. The food security of the Republic is quite stable and the needs of local population in the main foodstuffs are covered by local producers. We are actively working on opening new workplaces within the frames of numerous investment projects, such as the erection of the transformer plant, the plant for production of ceramic tiles “LASSELBERGER”, launching new capacities at joint-stock companies “UFANEFTEHIM”, “POLYEF”, “Caustic”, “Soda”, “SALAVATNEFTEORSINTEZ”, “SALAVATSTEKLO” and others.

Our Republic is well-experienced in “handmade mode” economics management at the beginning of 90s and during the default 1998. That time we’ve managed to adapt ourselves to new methods and conditions and to provide stable economic growth and raising of people living standards.

Today we are again facing such problems as inflation, recession, payment delays and unemployment and the Government is already undertaking certain steps to smooth all possible crisis after-effects. These steps are directed to solution of the following tasks: reduction of production expenses, including energy-saving; growth of production output; establishment of new productions especially in agricultural processing, tanning industry and timber cutting; the rise of efficiency and optimization of state investment programs, providing preservation of housing building rates, the level of transport infrastructure and housing-communal services; participation in federal programs and projects.

The necessity to inform our citizens and employers about undertaken anti-crisis measures stands on the first place because the vote of confidence to authority is the most important condition for efficient work and every chief has to understand it clearly.

The parameters of budget-2009 are determined with the purpose to support all social obligations of the state financially irrespective of all external factors and circumstances. In the current situation we intend to collect 11 billion 800 million rubles from federal exchequer into Republican budget in total complexity but the crisis demands mobilization of al resources – state and private ones.

The strengthening of the measures on preservation of stable balance in our budget system is becoming the key direction in our budget policy, first of all due to monitoring of qualitative criterions of its stability and strict interrelation between our real abilities and final goals. All abovementioned requires absolute observance of financial discipline and creation of efficient audit system for financial management in real sector of economics.

The approved integrated plan of actions, aimed at support and stabilization of the Republican financial system in 2008-2009 presumes perfection of budget and tax legislation, fulfillment of earlier assumed budget obligations and the plan of Republican consolidated budget incomes, optimization of expenses. All these measures have to provide precise execution of earlier set budget parameters.

The prior tasks in bank sector are preservation of financial stability and basic services for Republican economics. At the end of the last year our bank sector has become aware of the negative influence of the global crisis in full measure – difficulties with attraction of liquidity in financial markets, drop of trust from population etc. But the measures, undertaken by us, were able to stabilize the situation in the bank sphere. But the sector is still facing certain problems. In this connection the National Bank RB has to alter the plan of actions on realization of the bank sector strategy development.

The crisis processes demand elaboration of anti-crisis measures in financial activity of economic agents and it is expedient to support only those enterprises, which actively participate in these actions. Our ministries have to organize the activity of the commissions on financial recovery of the enterprises, found under their patronage.

President of Russia mentioned in his Message to Russian Federal assembly that we had to stay on the leading edge of innovations in all spheres of life. Bashkortostan pays serious attention to this issue. We’ve approved the regional strategy and the goal-oriented program on support of innovations and development of innovational structures. More than 40 regions and towns RB are running their own similar programs.

Attraction of new investments is becoming of paramount importance. Bashkir authority approved the plan of private-state partnership and the basics of cluster policy, the concept of investment system. We introduced certain preferences for foreign investors. 70 big projects at the cost of approximately 524 billion rubles and 636 municipal projects for the sum of 83 billion rubles are found under development in Republic of Bashkortostan now and it is extremely important to put all these objects into exploitation in the nearest future.

Five largest enterprises RB are included into the all-Russian list of 295 system-forming organizations, which may figure on state support at the expense of the federal exchequer: joint-stock companies “BASHNEFT”, “UFANEFTEHIM”, “UMPO”, “BASHKIRENERGO” and others.

Unemployment remains one of the most painful problems in Republic for today, though its level was always low. At the beginning of March 45 thousand people were registered as unemployed. In order to decrease the intensity in the labor market the plan of actions is approved and it will be financed both by federal and Republican budgets. All ministries and departments have to join this work and Bashkir Government has to coordinate their activity in this direction.

Business community has to raise its contribution to economic development of Bashkortostan too. In October 2008 there were more than 116 thousand small business companies and enterprises in the Republic and 284 thousand people were busy with small business undertakings – i.e. every fifth employed citizen RB. But the sum of works and services, produced by them, made up 125 billion500 million rubles or 16% of the Republican volume. This level doesn’t meet our expectations and we observe no expected inflow into local budgets. We have to provide qualitative breakthrough in this sphere. The Republican program on small business support doesn’t contribute enough to population business activity and we’ve reached the decision to increase its financial constituent. More than one and a half billion rubles will be directed by federal exchequer for support of private economic initiatives and the order of access to these means will be substantially simplified.

Agriculture plays very important role in life of our Republic as one of the main granaries for the country. Its state in many respects determines the foodstuff security of the country and social stability in the society. Bashkortostan is the leader by cattle livestock, horse livestock and in production of milk, horse milk and honey. The Republic holds the second place in the country on production of potato, the third place on meat production and the fifth one on production of eggs and by livestock of she-goats and sheep. We have to make these positions even more solid! State support of our agriculture has made up about 8 billion rubles in 2008 – 1,5 times more than in 2007! In 2009 we intend to preserve this level.

Situation in building sphere is also becoming threatening. This sphere also faces the crisis, crediting of developers and already running projects is falling down. Toughening of hypothec credit policy makes allocation of finances for housing building more difficult. In these conditions prior attention should be paid to activity of the basic building organizations. We have to provide more regular activity of our main building organizations.

We have to expand our contractual relations with other Russian regions and special attention should be paid to cooperation of Bashkortostan with Hungary, Germany and the Great Britain, with CIS countries.

Dear deputies!

Much is done in Republic of Bashkortostan for intense development of social and cultural spheres. Every year we direct more than a half of our supply to erection of schools, hospitals, culture houses and training centers. Our main goal is the increase of people prosperity and living standards. I’d like to underscore that in spite of the crisis all social programs should be performed in full volume and within the frames of the available resources it is important to preserve that level of state support for families with scanty means, families with many children, invalids and elderly people. These questions have to be under strict control of local-government and state bodies as well as of public organizations.

Protection of people’s health and the rise of medical services quality and accessibility are the prior tasks in our politics. We approved and launched the concept of health protection development and financing of the medical branch in 2008 made up more than 23 billion 700 million rubles. It means that the volume of means, allocated for health sphere, has grown up nearly two times for the last four years!

I would like to say once again that in a whole and in conditions of the crisis we intend not just to preserve but to raise the level of social support for people, working over formation of our future potential.

We are facing very difficult year ahead and taking the development of the global crisis into account we have to undertake the measures on saving budget means but at the same time we have to provide fulfillment of our social obligations. The support of business undertakings demands special attention. We have to accelerate its further development and to remove the administrative obstacles on its way.

Dear participants of the meeting! Dear compatriots!

These are just few, the most important aspects of our work. After the meeting is over, you all will be provided with the full text of the Message and the summary report of the Republican Government.

I would like to emphasize once again that no retreats are admissible on all directions of our state policy. The tasks for 2009 can be fulfilled only with the help of our joint efforts. It is high time for operative and non-standard steps, high activity and social initiatives. I believe that Bashkortostan possesses everything possible to overcome the crisis. In the past we often faced even harder trials but every time we managed to find the way out becoming even stronger. I am sure same will happen this time!

Thank you for attention”.