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Subject: Catch Up With USA and Leave It Behind?
CCCP    5/17/2003 8:39:41 PM
State of the Nation address: President Vladimir Putin urges the country to make a great advance It is not accidental that the Russian Government felt very much nervous on the eve of President Putin's State of the Nation address. A speech delivered by Vladimir Putin seriously disagrees with the "stable" relaxation of Mikhail Kasyanov's Cabinet. As the President says, forming of a government is possible with the help of the parliamentary majority, which in its turn sounds rather threatening for the prime minister and other members of the government. The President called for economic mobilization. To tell the truth, the government headed by Mikhail Kasyanov didn't mention this objective within the whole period of the term. President Vladimir Putin called the economic situation in the country difficult. In his words, against the background of success achieved within the past years, some people think that all problems of the country are settled, the future of Russia is successful and predictable and the only problem, as people may think, is that economy must go up 4 or 6% a year. The President emphasized: "I would like to say it is not so. Although Russia's economic foundation has become stronger, it is still unsteady and weak. The political system is not sufficiently developed, the state machine is ineffective, majority of industries are noncompetitive." What is hampering the successive economic growth? At the beginning of his State of the Nation address, Vladimir Putin said he hoped Russia would become a country "with safely protected rights of property, where people can work honestly, where they can earn money without fear and any restrictions." Thus, the President admits that none of the aspects is being completely realized in the country. And this is the actual state of things, indeed. At the beginning of the speech, Vladimir Putin said that rescue of the economy from bureaucracy shackles was one of the main objectives. After three years of Putin's presidency, there are no economic sectors that feel free and valuable because of bureaucracy. At the same time, Vladimir Putin said he hoped that Russia would soon take strong positions among economically advanced and influential states of the world; he said that decisions and actions taken by the authority must be focused on this very objective. "This is a qualitatively new objective and higher degree for the country. This is a degree that Russia failed to reach before because of other pressing problems. Now we have an opportunity to stay on this degree and we must use the chance," said Vladimir Putin. As the President says, Russia has achieved some progress in the economic sphere. "Russia's GDP increased by 20% within the three years. Investments in the capital stock increased by more than 30%. Export of goods increased by 25%, including export of machines, equipment and transport vehicles that went up by more than 70%. It is for the first time within 50 years that Russia acted as an importer of grain, not exporter." However, this is not enough. Russia President Vladimir Putin set the political elite of Russia some super objectives that must be carried out quickly and energetically. The President thinks that first of all Russia must ensure full convertibility of the ruble. At that, the President emphasized that "this is to be not only domestic, but also foreign convertibility of the Russian currency, not only in current transactions, but also in capital ones." Last year, the Russian ruble was one of the world's strongest currencies: the gold ruble's value equaled to the dignity of the country, the president says. Second, Vladimir Putin thinks that GDP doesn't correspond Russia's economic potential. "We must at least double the gross domestic product within ten years," Vladimir Putin says. In his words, this large-scale objective demands a deep analysis and specification of the economic policy approaches. Economy is to register an increase of more than 7% every year to double GDP within ten years. The President thinks that "Russia has every possible condition for realization of this objective." What is more, he says the country has opportunities to start large-scale construction of modern and strong economy that will result in formation of an absolutely competitive state. It is obvious that correct tax structure and flexible approach of the authorities to taxation seriously make for economic development. President Putin thinks that it is necessary to develop and introduce a strategic tax system that could be adequate to economy of the country not within a year or two, but longer. "It is for the first time that the government has switched from the annual to medium-term planning in the taxation policy. A program of taxation changes for the next three years has been recently approved. This is a correct and important step. Now we should go further and develop the outlines of a taxation system that might be effective in Russia w
 
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DrCruel    RE:Catch Up With USA and Leave It Behind?   6/29/2003 11:50:16 PM
Russia will never catch up with the US. Instead, entrepreneurial Russians will flock to the US, set up their own "RussiaTowns" here in al our major cities, then send hard Western cash and consumer goods back to their relatives at home. No one in Russia will ahve any incentive to work. That's what it looks like from my vantage, anyway. You heard it here first.
 
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Thomas    RE:Catch Up With USA and Leave It Behind?   7/1/2003 3:21:43 AM
No way. The Russian economy is, at the moment, kept up by overpriced oil. If demand wavers - and it will - then.... When the Russian nuclear threat potential is gone - about the time the Raptor goes into service for real - no more consideration for the selfpity of Russia!
 
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Soylent Green    RE:Catch Up With USA and Leave It Behind?   7/1/2003 6:50:29 AM
Yup. No way. No way that I can see anyway.
 
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Shaka of Carthage    RE:Catch Up With USA and Leave It Behind?   7/1/2003 9:06:41 AM
Maybe they have discovered "cold fusion"?
 
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American Kafir    RE:Catch Up With USA and Leave It Behind?   7/1/2003 11:00:58 AM
It's interesting to note that Putin seems to be quite clearly aware of the nature of the problems facing the Russian economy, but his solutions seem to be so much wishing into one hand and sh*tting into the other and marveling at which hand has filled faster. You can't tax your people into prosperity. He needs to address corruption itself, not its effects.
 
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Soviet Spetsnaz    RE:Catch Up With USA and Leave It Behind?   7/3/2003 7:39:52 PM
Russia has reformed it's economy, and the U.S has not. Russia was the world biggest growth economy for 2 years in a row while the west was in recession. The USA is more dependent on its allys than Russia.
 
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Yamauchi    RE:Catch Up With USA and Leave It Behind?   7/7/2003 12:43:38 AM
Good luck on getting an 11 trillion dollar economy.
 
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NewGuy    RE:Catch Up With USA and Leave It Behind?   7/7/2003 12:22:45 PM
"Russia has reformed it's economy, and the U.S has not." This is simply an indication of the fact that Russia *needed* to reform its economy to survive -- the US does not. "Russia was the world biggest growth economy for 2 years in a row while the west was in recession." "A moot point -- for Russia to catch up with the US economy, Russia would have to have its largest growth in history for 24+ years straight while the US economy would have to decline every year for 24+ years straight-- that simply is not going to happen. "The USA is more dependent on its allys than Russia." Perhaps part of Russia's economic problem is that it needs more "allies" with which to be inner-dependent with? If you are not part of the world economy then you will suffer. Having allies is not a weakness: it is a strength. Please explain exactly how the Russian economy will catch up with the US economy -- there frankly is no known economic theory, based on the current or forseeable world situation, that can support such a statement. NewGuy
 
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Soviet Spetsnaz    RE:Catch Up With USA and Leave It Behind?   7/7/2003 7:44:11 PM
One answer: Russia's intregration in the EDF. Btw, I didn't meant its a bad thing having many allies. I meant depending on them is. You know, be close to your friend, but even closer to your enemy.
 
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ghostship    RE:Catch Up With USA and Leave It Behind?   7/7/2003 7:54:10 PM
Good luck with that Russian daydream ! Better start thinking about those terrorist in your backyard before you go after the STATES.
 
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