FBIS3-14832 "drsov039_b_94043"
FBIS-SOV-94-039 Document Type:Daily Report 28 Feb 1994
RUSSIA NATIONAL AFFAIRS Political Issues

Paper Publishes Yeltsin's `Annual Message'

PM2502110194 Moscow ROSSIYSKAYA GAZETA in Russian 25 Feb 94 pp 1, 3-7 PM2502110194 Moscow ROSSIYSKAYA GAZETA Language: Russian Article Type:BFN ["Russian Federation President's Message to the Federal Assembly" "On Strengthening the Russian State. (Basic Guidelines for Domestic and Foreign Policy)," signed by Russian Federation President B. Yeltsin and dated the Kremlin, Moscow, 24 February 1994] [Text] Introduction Russia is now experiencing one of the most important stages in the development of its state system. At the end of last year its first-ever democratic Constitution was adopted by national ballot. Despite highly acute political struggle and spiritual turmoil, despite tremendous mental and physical weariness, Russian society found the strength to take a difficult yet crucial step on the path to renewal and stability. And that enhances its value many times over. It is the duty of all of us who are actually involved in Russia's destiny to make the most of this opportunity. Two years ago we began the painful but ultimately necessary and healing reform of the economy. With tremendous difficulty we moved away from the edge of the economic abyss into which the old system was irreversibly pushing us and began the slow and not always confident move toward recovery. Last year we momentarily looked into another chasm -- that of civil confrontation -- and recoiled in horror. We now have to do everything we can, and possibly more, to ensure that this never happens again. The Russian Constitution is not only a symbol of our striving for national accord. It is a real basis for establishing cooperation in Russian society, primarily between the branches of federal power. Among the thousands of highly complex problems facing Russia today there is none that can be resolved amid confrontation and mutual mistrust. The resumption of the implacable struggle represents the way to deadlock, and there will be no way out. For those to whom Russia's citizens have entrusted the governance of the country it represents the route to political disgrace, damnation, and eternal oblivion. The ideological vacuum that arose after the collapse of the old system is now being filled with futile disputes about the advantages of various "isms." Too often they become symbols of confrontation and hatred, signs of disaster. We must all realize that a state cannot be built on ideas that cause schism and polarization in society. It must be based on natural values and concepts geared to the whole people and to every person individually. Such as security, freedom, prosperity, and solidarity. Our strategic aim is to make Russia a prosperous country inhabited by people who are free, proud of their ancient history, and look boldly to the future; a country in which authority is based on law and does not oppress the citizen; a country with an efficient economy combining national features and world achievements. This aim is cherished and understood by all Russian citizens regardless of their convictions, political orientation, social and property position, age, and nationality. We will be able to achieve it if we rally around the common practical task of strengthening the Russian state. We have the main condition needed to perform this task -- the Constitution. It outlines the legal framework of a strong and stable democratic state. For us the main guideline in this work is the Constitutional formula -- Russia is a democratic, federative, rule-of-law, social, and secular state. We must strengthen the Russian state because strengthening the state means: -- reinforcing its institutions and establishing normal collaboration among them; -- creating a normal mechanism for its interaction with society; -- finding the optimum means for it to participate in economic processes; -- creating effective mechanisms to ensure and defend the rights and freedoms of every person regardless of nationality, religion, or social position; -- providing Russian citizens with confidence and tranquillity in their country, on the streets of its cities and villages, in their homes and apartments; -- securing a fitting place for Russia in the world community. Russia will not be strong unless it is united. The most lasting guarantee of the country's unity and the equality of the peoples inhabiting it will be the implementation of the principles of federative relations enshrined in the Constitution. Ordinary human values, respect for democracy and for the law will become ingrained if the state actively promotes the formation of a civil society, supports civil democratic initiative, shows farsightedness during the complex transitional period by supporting culture, science, and education, and establishes dialogue with various religions and faiths. A rule-of-law state must be strong in order to guarantee people's security, fight crime, and take the offensive against corruption. A strong state is the basis for continuing reform, overcoming the crisis, organizing the structural reorganization of the economy, and creating the conditions for its stabilization and development. Russia has an interest in ensuring economic, cultural, family, and ordinary human ties among the new independent states. A highly important condition for this is for each of these states to acknowledge the priority of human rights and the need to defend the interests of ethnic, cultural, and linguistic minorities. It is in Russia's interests to create favorable external conditions for the country's development. This must be achieved by a proper and friendly but at the same time firm and consistent foreign policy in which the desire for cooperation does not conflict with the country's national interests and Russian citizens' sense of national pride. The country is at a historical crossroads. One path leads to heedless political confrontation, the breakup of the state, and human tragedy; the other leads to constructive accord and awareness of the immutable aim, common to all without distinction of views or political stance, of strengthening the Russian state for the good of its citizens. We all need mutual understanding. It will be found if everyone, primarily the president, the Federal Assembly, and the government, is able to organize coordinated work. This Russian Federation [RF] president's message marks an important step in this direction. The message declares the head of state's political course. The president is not encroaching on the competence of any federal body of state power. At the same time the political, economic, and social guidelines contained in the message are a basis for evaluating the activity of all state bodies. In accordance with Point "F" of the RF Constitution and based on: a desire to ensure a more balanced and better-considered approach when defining the basic guidelines for domestic and foreign policy; the RF president's constitutional duty to ensure the coordinated operation and interaction of state bodies, I am sending the RF Federal Assembly my annual message "On Strengthening the Russian State (Basic Guidelines for Domestic and Foreign Policy)."
1. The Rule-of-Law State
1.1. The Constitution and Legislation
The Constitution adopted by national ballot 12 December 1993 created the preconditions for building a strong state in Russia. The new system of state power enshrined by the Constitution accords with democratic standards. The formulation of the Constitution took place amid the most severe political confrontation. That could not help having an impact on the legal quality of some articles. In the new political situation and on the basis of the adopted Constitution the continuation of stage-by-stage constitutional reform is a justified and lawful process. But it is at the same time important to act without haste, not to give in to the transitory political situation, and to take into consideration the practical experience that will be accumulated in implementing the provisions of the Constitution as society develops. The important stage of Russia's transformation into a democratic state is now coming to a close. A democratic system of power is being shaped on the basis of the Constitution. The institution of the presidency, whose powers are designed to strengthen the state system and defend constitutional values, has acquired new political and legal substance. The role and place of the government take new expression in the Constitution. It is an autonomous constitutional institution, capable of bearing full responsibility for the decisions it adopts. At the same time the government acts within the framework of the laws and edicts and in accordance with the policy of the president. In December 1993 a parliament appeared in Russia -- the Federal Assembly. Without developed parliamentarism, full-fledged democracy is impossible. The justice system will be renewed and reformed in the very near future. Its role hitherto has been far-removed from that which the judiciary should play in a rule-of-law state. The Constitution created a favorable basis for the interaction of all branches of power, primarily the president and the parliament. However, the Constitution only defines the legal conditions for the joint work of the president and the Federal Assembly. A desirable psychological climate for mutual relations is also essential. That is political culture. Annual presidential messages are one element in this. The message is not a directive, but nor is it a collection of good intentions. The president possesses sufficient constitutional potential to influence the state of affairs. A parliament respecting the president's powers will not put up artificial barriers to the implementation of the Basic Guidelines for Domestic and Foreign Policy. That is the accord which the people expect from the authorities. It is on this that the strengthening of our state and civil peace in the country primarily depend. The stability of society, the defense of its basic values, primarily human rights, and the safeguarding of Russia's national interests in many respects depend on how effectively the democratic power works, whether it is able to overcome the gulf between constitutional principles and real practice. One of the reasons for this gulf is that a deep struggle is still under way in society and the state apparatus between the supporters and opponents of a democratic system. A clash of interests is characteristic of any free society. But it is fruitful as long as it is conducted within a system of democratic values. That is a necessary restriction, and it must be the criterion for the legal assessment of any politician, any political organization, any state institution. In particular, we cannot in the future permit the activity of parties, movements, or other associations that encroach on the foundations of the constitutional system or advocate and sow social, ethnic, and religious enmity and hatred. Likewise, such anticonstitutional manifestations cannot be permitted under cover of a deputy's status or a state post. Disregard by the authorities of infringements of the constitutional system means either an inability or a reluctance to defend democracy by means of state coercion even though this be directly dictated by the Constitution. Another fundamental reason for the gulf between democratic principles and state practice is that, having renounced the command principle of exercising power, the state has not been able to fully master the rule-of-law principle. This has elicited such threatening phenomena as: -- an uncontrolled increase in managerial personnel in all spheres, which reduces the effectiveness of authority and distorts the whole system of government; -- flourishing bureaucracy, which is stifling the growth of new economic relations, distorting the state's social policy, and having an oppressive effect on people's social state; -- the involvement of officials at various levels of government in the political struggle -- which causes state decisions to be sabotaged; -- corruption, which has infiltrated the state and municipal apparatus; -- a dangerously low level of executive [ispolnitelskaya] discipline; -- lack of coordination in the work of ministries, departments, and other state bodies. It must be openly admitted that democratic principles of organizing power are increasingly being discredited. A negative image is developing of democracy as a weak, amorphous authority that does little for most people and primarily upholds its own corporate interests. Russian society has acquired freedom but has not yet perceived democracy as a system of strong state power which is at the same time wholly accountable to the people. It is therefore essential during the new stage to create and fine-tune the practical mechanisms of democracy. This problem can be resolved if we radically boost the effectiveness of state power, ensuring precise and unswerving observance of the Constitution and the laws, employing if necessary the mandatory attribute of authority -- state coercion -- based solely on the law. This is a problem of paramount importance, and it must be tackled by the joint efforts of the president, the Federal Assembly, the government, and other bodies of state power. It is necessary in the near future to formulate and adopt laws which establish clear rules for the functioning of state bodies, primarily executive bodies. They must make provision for effective mechanisms of supervision and accountability, making it possible to adopt legal acts which are really feasible and which thus eschew arbitrary interpretation -- legal acts which are economically costed and which incorporate concrete penalties for their nonimplementation. These include the laws On the Government, On Federal Executive Bodies, On Normative-Legal Acts, On Federal State Service, On the Basic Principles of Organizing Representative and Executive Bodies of Power in RF Components, and On the Status of State Duma Deputies and Federation Council Members. It is necessary to revise normative acts at federal, regional, and municipal levels with a view to radically reducing the sphere of operation of the so-called authorization [razreshitelnyy] principle and replacing it with the notification [uvedomitelnyy] principle. In the practical activity of executive bodies supervisory functions and officials' personal responsibility for failure to implement legal acts must be a top priority. The work of state bodies and officials must be assessed not only on the results of their managerial influence on the situation but also, first and foremost, on the standard of their implementation of legal acts and decisions of higher-ranking bodies adopted within their remit. In a rule-of-law state authority is associated with the law, which is a mandatory feature of such a state. Therefore the development of the law is a pressing avenue in a policy of strengthening the Russian state. The main role in this important matter is played by the Federal Assembly. It is necessary to single out the following as priorities in legal reform: -- the creation of effective legal mechanisms which guarantee the rights and freedoms of the individual and the citizen. Today the most urgent matters in this sphere are the Housing Code, the Code of Labor Laws, the Law on Public Measures, changes to the Law On Defense of Consumer Rights, and the Laws on State Social Insurance, On the Subsistence Minimum, and On Resolving Collective Labor Disputes; -- the development of the legal foundations of a market economy (primarily the adoption of a new Civil Code); -- the improvement of procedural, criminal, administrative, and other sectors of legislation designed to ensure the rights of the individual and of society and to protect them against organized crime, corruption, and other criminal manifestations. Those sectors of the law which are just beginning to develop or are lacking at present require particular attention. These being banking law, law on bills of exchange [vekselnoye pravo], tax law, corporate management law, information law, computer law, etc. Legal reform must be based on the following principles: -- systemic new legislation (the adoption of packages of legislative acts, the exclusion of duplicative acts and legal loopholes, etc); -- legal economy (the adoption of fewer normative acts, the use of methods of codifying legal acts, etc); -- the unity of the legal system (the establishment of a clear hierarchy of legal acts both at federal level and within the system of mutual relations with Federation components).
1.2 Judicial Reform
If a state has a strong judicial system, then the state itself is strong. It is strong because the legislative and executive authorities do not expend enormous amounts of effort on struggling for the implementation of their respective decisions, and they are delivered from the temptation to act by illegal means. The judiciary fulfills the main role in defending the law everywhere. Its strength is that it is devoid (at any rate it should be devoid) of any political interests. Its main and sole interest is the law as an independent value. In Russia today judicial institutions are fragmented, their jurisdiction does not yet extend to all legal relationships, and in many ways the legislative base of justice is obsolete and incomplete. The federal authority is thus faced with the pressing task of deciding how to carry out judicial reform as soon as possible. Its objective is the formation of effective justice operating on strong legal and democratic principles. Judicial reform should ensure: -- universality of legal protection (the chance of protection against any manifestations of arbitrariness or violence); -- access to justice; -- prompt legal protection for rights and legitimate interests; -- certainty that legal decisions will be implemented. Citizens' legal protection is weak. Many courts do not regard constitutional provisions as norms for direct action. For various reasons, citizens frequently refuse to exercise their right to legal protection. Judicial decisions, primarily in the civil legal sphere, are frequently not implemented and are ignored by those to whom they are addressed. The principle of the independence of judges and their subordination to the law alone has still not become the norm. A number of levers that can be used to exert pressure still remain in the hands of officials. Judges' working conditions, level of social protection, and day-to-day backup depend to a considerable extent on how well disposed the local leadership is. The interests of strengthening the state demand reform of the work of the RF Constitutional Court. Apart from resolving the issue of electing more constitutional judges, we also need to finalize and adopt a new law on the Constitutional Court as soon as possible. At the same time we should also take account of the defects of the previous law, which distorted the essential nature of this important democratic institution. We need to reform not just the competence of the Constitutional Court, not just the guarantees that its decisions will be implemented, and not just the status of the judges, but also the actual process of constitutional justice. We also need to adopt laws which enshrine these new procedural principles in criminal, civil, administrative, and arbitration proceedings, primarily the principles of an adversarial judicial process and the equality of the two parties. The jury system is one of the most democratic forms of legal procedure. The appropriate bodies should therefore summarize the results of the experiment begun in 1993 as soon as possible and submit proposals for the possible full-scale introduction of this institution into legal practice. We need a law on judicial administration which establishes general principles for constructing the Russian legal system and the particular features of legal regulation of the various subsystems of the judiciary. We should also restore progressive institutions such as justices of the peace and appeal proceedings. A pressing need has developed to isolate administrative justice as an autonomous subsystem. It should be composed of courts or the judicial offices of general courts with the purpose of examining cases relating to the legitimacy of actions taken by state and municipal organs and officials. In order to democratically reform the activity of the highest court within the system of RF general courts, we need a law on the RF Supreme Court. In order to create effective justice we need to adopt without delay a legislative act that establishes guarantees for state protection of judges, jurors, witnesses, victims, and other participants in the judicial process. Courts need to be fully financed. This is important not just in order to lift the prestige of the judiciary but also to ensure the courts' full independence of government bodies at all levels.
1.3 Protection of the Citizen, the Law, and the State
Strengthening the state is inconceivable without curbing crime. An enormous difficulty, however, is that a strong state is needed in order to combat crime effectively. The problem is so acute that it cannot be postponed. We are talking about a realistic assessment of the situation and the adoption of all possible measures to change it for the better. The unbridled growth of crime is creating a major threat to the state and society and to the life, health, and property of citizens. Crime currently constitutes a threat to Russia's national security. Over the last four years the overall level of crime has almost doubled. Dangerous trends in the dynamics and structure of crime have been getting stronger. The situation is complicated by the crisis which is also being experienced by the law-enforcement organs. Their professional cadre nucleus has been significantly weakened. All this is having a negative impact on crime detection and the prestige of the organs engaged in maintaining law and order, which in turn means that lawbreakers go unpunished and the criminal world increases its aggression. Recent measures have been taken that are designed to concentrate the state's efforts on this important area, and a federal program for combating crime in 1994-1995 has been prepared. Its objective is to establish additional guarantees for the protection of citizens' lives, health, and property and other rights, and also to ensure public safety and law and order. The implementation of these planned measures is dependent on appropriate financing, which requires the Russian parliament to make difficult budget decisions. However difficult the state's economic position, we need to do everything we can to satisfy the most urgent financial and material requirements of the bodies engaged in maintaining law and order. The Ministry of Internal Affairs is to adopt cadre and organizational measures to ensure the normal functioning of the law-enforcement organs. We need to free them from implementing functions and bureaucratic work that are alien to them, and we also need to break down departmental barriers and eliminate legal and organizational confusion in the activity of the law-enforcement organs. We need to form within the structure of the Ministry of Internal Affairs a rigidly centralized system of subunits for combating organized crime, and first and foremost we need to supply these subunits with the best cadres, hardware, and financial assistance. The interests of the fight against crime demand the implementation of a single legal policy by all bodies and officials empowered to carry out criminal prosecutions, be they examiners or investigators, prosecutors or judges. We need to ensure social protection for the personnel of bodies engaged in maintaining law and order, and at the same time we need to strictly monitor how far they measure up to professional and moral requirements. The effectiveness of the fight against crime presupposes consolidation of the legal base. To this end the Federal Assembly must examine and adopt an appropriate package of laws as urgently as possible. We need to find legislative solutions to a number of issues relating to the fight against organized crime and corruption, including: -- reinforcing criminal and other juridical penalties for all persons involved in organized criminal groups, particularly the ringleaders; -- widening the base of evidence; -- protecting those taking part in criminal trials; -- adopting measures to prevent the "laundering" of money obtained by illegal methods; -- adopting measures to prevent the emergence of organized crime within the state apparatus. These issues must be reflected in federal laws designed to combat organized crime and corruption and in the laws on the federal state service. We need to eliminate loopholes in the legal regulation of the fight against economic crime. First and foremost, there should be equal legal protection for all forms of property. We need acts designed to protect persons engaged in honest business activities, and at the same time we need acts on liability for dishonest competition and unscrupulous enterprise, false bankruptcy, misleading publicity, acquisition of credit by deception, violation of tax, customs, and licensing regulations, commercial bribery of people in unofficial positions, and computer fraud. We need to formulate a fundamentally new system for warning us about instances of lawbreaking and neglect among children, adolescents, and young people, and we need to set up a network of state and social organizations to ensure social protection and corrective behavior for this section of the population. We need a raft of measures to offer social assistance to people left without a permanent income or the means to survive. We need a legislative act that clearly regulates social rehabilitation measures for people released from jail. The active integration of domestic crime with the international criminal world requires us to strengthen cooperation between Russia's law-enforcement organs and those of foreign countries. Russian accession to appropriate international conventions as soon as possible could serve as the legal base for this enlargement. We also need to ratify the Convention on Legal Assistance and Legal Relations in Civil, Family, and Criminal Cases, signed over two years ago by the CIS heads of state in Minsk. The adoption of new Criminal, Criminal Procedure, and Criminal Enforcement Codes based on the principle of the priority of common human values are a measure that cannot be postponed. These codes should reflect the specific characteristics of new Russian statehood and stipulate proper protection for all its institutions.
2. Man in the Democratic State
2.1. Human Rights
The RF Constitution juridically guarantees the state's attitude toward human rights in line with contemporary perceptions of democracy and the principles of a civil society. Man and his rights and freedoms are a supreme asset. The recognition, observance, and protection of human and civil rights and freedoms constitute the state's main obligation. Power in a democratic state pursues neither the oppression of freedom nor external expansion. All its attributes of force are needed not for the self-assertion of authority but in order to ensure that every person is protected against all types of arbitrariness and violence, is conscious of his dignity, and plays the part of the state's equal partner. In other words, all the state's might must guarantee the safeguarding and protection of individuals' rights. The Constitution defines the path which must be followed by state bodies. Specifically, it is no longer permissible for bodies of state power and local self-government to ignore in their practical work the provision that the RF Constitution has a direct effect throughout the RF's territory. This makes it possible to base judicial decisions directly on the Constitution, including cases when current laws are either lacking or are at odds with it. The universally recognized principles and norms of international law and the RF's international treaties are a component of its legal system. Thus, state bodies and officials must organize their activity in compliance with international standards in the sphere of human rights and the legal protection of individuals. But, following the Constitution's adoption, the gap between it and the current legislation in the sphere of human rights and the protection of individuals widened. Edicts of the RF president have partly filled the legal vacuum in question, but they cannot and must not constantly replace the laws. Thus, the task of bringing legislation in line with the Constitution is on the agenda. With a view to normatively guaranteeing human rights, over the next two years it will be necessary: -- to elaborate and adopt the laws directly envisaged by the Constitution; -- to improve the federal laws currently in force; -- to elaborate and adopt normative acts establishing a mechanism for the implementation of federal laws; -- to bring the legal acts of the RF and the Federation components in the human rights sphere in line with the Russian Constitution.
2.2. The Safety of Individuals
A democratic state has no right to invade citizens' private lives, but it must guarantee each person's individual safety and the protection of his dignity. One of the most acute problems in the life of the state and society is the headlong rise in crime. This is one of the main factors hindering the implementation of reforms, and is alarming citizens as regards their lives and prosperity. The situation has become intolerable. Many correct words have been uttered about a war against crime. The results are far fewer. It is time to get down to specific deeds. The idea that the democratic power is incapable of imposing order is being firmly implanted in the public's mind. It is necessary to overcome this dangerous misconception. On the contrary, people must gain confidence that only the democratic state is capable of guaranteeing their safety. The problem of the safety of individuals must be solved immediately by applying effective legal, organizational, cadre, and financial measures. Russia's citizens also need legal protection against arbitrary rule by the state structures themselves. It is necessary to create a developed and accessible system of legal aid for the population. The level of the legal profession's [advokatura] development is an accurate indicator of the legal guarantees of human and civil rights and freedoms. It is necessary to legislatively guarantee the legal profession's independence and high standing and rule out any interference in its activity by bodies of state power. At the same time it is necessary to enshrine conditions for subsidized provision of various legal services to citizens in financial difficulties. It is incumbent on the state to show concern for the population's health by recognizing the intrinsic value of the health of each one of Russia's citizens. At the same time, the qualitative indicators of the state of the population's health have been steadily declining over the last 10 years. Demographic processes are developing negatively. Life expectancy is declining, the mortality rate is rising. There is a growing threat to citizens' sanitary and epidemiological safety. Only 60 percent of the population's needs for medicines were met in 1993. The government's minimum task in 1994 is to prevent any further decline of the volume of medical and medicinal services to the population by pooling the various sources of finance and concentrating them along the most important avenues of health care: accident and emergency medical services, intensive care and resuscitation, family medical practice, and provision of medicines. The reform of the medical services system is designed to stabilize and improve the situation in the health care sphere. Its objective is to satisfy the population's needs for high-quality and accessible medical and medicinal services and to create conditions promoting a healthy, active, and long life. The reform must primarily make provisions for: -- a structural restructuring of the sector and a transition to mandatory medical insurance for all citizens of Russia; -- support for the state and municipal health care systems. World experience shows that the introduction of medical insurance instead of a centralized health care system is the most rational and most reliable form of medical service. Under such a system, the patient's interests are protected not only by health care bodies but also by the insurance companies. Medical insurance is only just coming into being in Russia. Nonetheless, the initial experience of work by territorial funds of mandatory medical insurance has shown that the set amount of insurance contributions is clearly inadequate and not in a position to fully compensate the rising prices of medical and medicinal services for the socially unprotected population groups. The government will have to find a way to gradually raise the insurance contributions. High-quality treatment and preventive medicine are possible only on the basis of applying highly efficient medical technologies and the achievements of medical, biological, and technical sciences which require a modern production base. One of the important tasks of federal bodies of power is to promote its development by all possible means. It is necessary to involve on a large scale the country's enterprises, primarily those undergoing conversion, in the production of modern, high-quality medicines and medical equipment. It is necessary to retain duty-free centralized imports only for vitally important medicines which are not produced in Russia. These measures will provide serious support for our country's medical industry. The transformations in the health care system require legislative backup. In the near future the RF parliament will have to examine laws on the health care systems, on patients' rights, on medicines, on protection of the family, and a series of other laws. For a very long time our country practiced a feckless approach toward the creation of new production units and the construction of industrial facilities, using predatory methods for the utilization of our natural wealth. Nowadays people have to pay for these miscalculations. Vast regions in the country have become ecological disaster zones. The lives and health of tens of millions of people inhabiting these territories, as well as their flora and fauna, are under grave threat. A critical situation prevails in a series of places, especially in major industrial centers. The public is perfectly justifiably alarmed about the condition of the environment and is making fair demands for urgent specific work to improve the situation. The citizens' right to enjoy a favorable environment is enshrined in the Constitution. Therefore, it is the constitutional obligation of all bodies of power to create conditions promoting environmental recovery. It is necessary to be guided by the principle that ecological safety is a component of Russia's national security. The government has elaborated a series of immediate ecological programs, but their implementation is progressing extremely slowly. The effect of inadequate financing is felt. The Federal Assembly and the government will have to give serious attention to this problem. The ecological situation in many regions can be repaired by federal services exercising ecological monitoring, protecting natural resources, and regulating their utilization. For this purpose it is important to ensure that their work is not limited to just identifying violations and that they make full use of all the potential at their disposal. A decisive turnabout in environmental protection work must be ensured through a long-term state strategy for protection of the environment, whose main provisions were ratified in early February 1994 by edict of the RF president. Attention in it is focused mainly on: -- guaranteeing ecologically safe and stable development in conditions of market relations; -- protecting the environment (including alleviating the critical ecological situation in major cities and industrial centers and guaranteeing the population's radiation safety); -- ensuring the recovery and restoration of Russia's disrupted ecosystems; -- actively participating in the solution of global ecological problems. In line with this strategy, the government has been instructed to elaborate within two months an action plan for environmental protection in 1994-1995. This year the government has also been instructed to elaborate a concept of the RF's transition to a model of stable development ensuring balanced solution of socioeconomic and ecological problems. The complexity and scale of these problem demand constructive collaboration between federal and regional bodies of power, bodies of local self-government, entrepreneurs, and public associations. We will need a considered application of both economic and administrative regulators within the law's framework, developed legal backing, and pursuit of targeted socioeconomic, financial, and taxation policies.
2.3. State Support for the Institutions of Civil Society
Without a developed civil society, state power will inevitably acquire a despotic and totalitarian character. It is only thanks to the civil society that this power starts serving man and becomes a protector of freedom. It is a specific feature of the Russian situation that the foundations of a new democratic state are being laid in parallel with the establishment of a civil society. Since a democratic state cannot exist without a civil society, the state is objectively interested in supporting public institutions. This does not mean the state interfering in the life of civil structures or vesting state authority powers in public associations; it means selectively helping those civil society institutions which are capable of directly boosting the democratic potential of authority. The mass media have an invaluable role to play in shaping the civil society. The protection of their freedom is a strategic task. While this freedom exists, democracy is defended by one of the most important protective factors. The Russian mass media today are undergoing major qualitative changes associated with their transition to market tracks. Numerous problems have accumulated. Just as in the last two years, finances remain a key issue. Under no circumstances should the press be left without subsidies in 1994. It is necessary to gradually undertake the destatization of the mass media, primarily of newspapers and journals. The state authorities must hand their functions as founders over to editorial offices and journalists' collectives. It is clear that the state will be unable to cope with the financial maintenance of television and radio broadcasting companies. The package of presidential edicts on television and radio broadcasting issued in December last year defined the course of state policy in this sphere. It is important, however, to ensure that Russia's information area is not broken up and fragmented in the process of implementing practical steps. The state television and radio channel must be retained. The time has finally come to develop the legislative base of mass media activities. A law on the right of access to information must come first in this sphere. It is also necessary to prepare draft laws regulating the activity of television and radio broadcasting companies, especially since some sound work has already been done in this regard. One of the factors which complicate the formation of a democratic political system and a civil society is the weak and amorphous nature of parties and public organizations. There is the great inertia of interparty and intergroup struggle, in which the citizens' interests are relegated to the back burner. The Federal Assembly elections in December 1993 demonstrated significant shortcomings in the legislative backup for the activity of parties, public associations, and mass media during the election campaign. It is necessary to ensure that the next presidential and parliamentary elections are held on the basis of new and updated laws. It is equally important to define at federal level the main provisions of electoral legislation in Federation components. A special role will have to be played by the law on political parties which, in parallel with general democratic provisions, must boost the development of a multiparty system. It is important that this law should guarantee: -- the strengthening of the parties' role as main channel of political activity associated with the shaping of power; -- the creation of conditions encouraging the consolidation of parties and the formation of a stable party system; -- the orientation of party activity toward ascertaining and expressing the opinions of different strata of society. It is expedient to ensure that the law on political parties and the law on elections are coordinated and complement each other. Laws on elections ought to be elaborated on the basis of a critical interpretation of the experience of the first multiparty elections and the dominant participation of major political blocs in the elections. An important avenue of lawmaking should be the procedure for using the mass media both during the election campaign and in the period between elections. Here we cannot avoid a legislative regulation of television and radio airtime allocated for election campaigning. In this regard, the provision of free airtime by state-owned mass media must become one of the forms of state support for the multiparty system. It is expedient to utilize the experience accumulated during the last elections. The Information Arbitration Court, now the Court of Appeal, must sum up this experience and submit relevant proposals to the president. The adoption of separate legislative acts on parties and on public organizations (associations) will draw a line between political activity as such and the activity of organizations and citizens aimed at solving nonpolitical problems. This will bring public organizations into the implementation of the state's social policy. The state will have to partly finance the activity of public associations engaged in resolving priority social tasks. This will make it possible to partly ease the burden of the state and cut back the state apparatus. A considered and legislatively enshrined procedure for the use of state funds by public organizations will help to enhance the efficiency of their utilization. State support for public organizations must take the following forms: -- providing subsidies on a competitive basis; -- giving them the right to utilize state property; -- granting them tax concessions and full or partial exemption from payment for services rendered by state-owned enterprises. While helping, the state must have the right to monitor the utilization of any financial or other resources that have been made available. This mechanism must be embodied in laws on public organizations (on freedom of association), on trade unions, on noncommercial organizations, on charitable foundations and charitable activity. One of the signs of a developed civil society is the system of institutions of self-government. These institutions make it possible to impart a constructive meaning to people's free activity and link it with self-responsibility. This is precisely why the Constitution singles out a separate sphere of civic autonomy and activeness -- local self-government -- and lays down that bodies of local self-government are not part of the system of state power but function autonomously and are accountable to their population. But this does not mean that the state can completely distance itself from legally regulating the structure, functions, and powers of local self-government. It is impossible to ignore the fact that this is not only a sphere for residents' self-organization but also a specific level of power.
3. Federalism -- a Territorial Form of Democracy
3.1. The Integrity of the State and Regional Policy
Strengthening the state means above all the strengthening of its territorial integrity. The problem does not boil down merely to ensuring the inviolability of state borders and protecting the country from external threats. For all the importance of these tasks, what causes alarm are manifestations of the country's disintegration, and internal tendencies which threaten its territorial integrity. These misgivings are caused by the fact that the radical transformations in the economic and political spheres have coincided with the crisis of unitarism which has outlived its time. For Russia, which has begun democratic transformations, the only real method of strengthening Russia is the creation of a modern federative state. The task of the federal authorities is to find the kind of form of state structure such that the regions' natural desire for greater autonomy does not create a threat to the integrity of Russia. The first steps along this path have already been taken. The Constitution itself has been prepared with the direct participation of the components of the Federation. During the Constitutional Conference many contradictions were successfully eliminated and it proved possible to find juridical formulas by way of a compromise which have become the basis for further progression forward. The regions are actively arranging coordinating and managerial links with each other. A mechanism of "self-attunement" has begun to function thanks to which new socio-economic complexes, undivided by administrative boundaries, are beginning to take shape in Russia. Prototypes of interregional structures of management have appeared and these have taken over a proportion of the functions which previously used to be fulfilled by the unitary center. These are interregional associations whose activity encompasses the entire Russian Federation. The growth of the regions' autonomy and the reduction of the powers of federal authority do not signify a weakening of the state and do not create a threat to the country's unity. The constitution lays down the basis principles which guarantee: -- the immutability of the state's territorial integrity; -- the equality of the rights enjoyed by the members of the federation between themselves and with respect to the federal organs of state power; the unity of the foundations of the state system (observance by each region of such fundamental principles of statehood as sovereignty of the people, separation of powers, multiplicity of parties, and equal electoral rights of citizens). -- freedom of movement for people, for the dissemination of information, and for the movement of goods and money throughout the state's territory (internal administrative boundaries cannot be transformed into state or economic borders); -- the supremacy of federal legislation; -- the impermissibility of actions directed at the unilateral change of status of a component of the Federation. Like all the other articles of the federal Constitution, these principles are mandatory for implementation by the authorities and citizens in any region of Russia. In everything which does not conflict with these principles and which does not fall within the competence of the Russia Federation, the regions have freedom in regard to their own development. The time of the struggle of the regions with the "center" for their rights is receding into history. The Constitution has granted all regions of Russia broad rights. Those regional politicians who are still demanding powers are breaking through a brick wall right next to an open door. The chief problem is to proceed to the real assimilation of these rights as soon as possible. The broad handover of powers to regional authorities does not in any way mean that the federal authorities are withdrawing from the exercise of any influence whatsoever on the regional life of Russian society. On the contrary, under the new conditions there is a growing need for the development and implementation of the Russian state's new regional strategy. This task was set by the president back in April last year although its implementation was rendered difficult until after the constitutional crisis was overcome. The basic principles and aims of regional strategy consist in the following: -- overcoming sharp differences between regions in terms of the standard of living and levels of development; -- the development of interregional cooperation and the maximal use of the potential deriving from the regions' diversity; -- the use of methods of incentive and regulation and the renunciation of administration by injunction; -- the prosperity of citizens; -- the transition from narrowly economic toward broader -- societal and social -- goals; -- ensuring territorial fairness (no region must acquire any unjustified privileges). An important instrument for perfecting the fundamentals of federalism must be a law on the general principles of organizing the representative and executive organs of state power in the components of the Federation. In the political sphere direct elections of regional authorities are the guarantee for regional autonomy. Regional authorities must be subordinated not to the federal authorities but to the federal Constitution. The division of sources of taxation receipts among federal, regional, and local levels must become a guartantee for the economic autonomy of the regions. Then each level of state power will be really independent from the others. Citizens and enterprises can function as tax-payers. Ensuring the rights of local self-government is one of the most important conditions for preserving territorial integrity. The competence of its organs encompasses the satisfaction of the most crucial, everyday, vitally essential needs of the people which neither federal, nor regional authorities are able to provide. Local self-government has deep historical roots in Russian political culture, taking the form of the zemstvo. For the young Russian democracy local self-government can become an effective means of galvanizing citizens and a means of involving them in constructive political work which yields real practical results. It is precisely at the level of local self-government that various forms of the national-cultural developoment of the peoples of Russia can acquire pratical embodiment.. Federal power is faced with a very important task -- to strictly delimit the functions, rights, duties, and responsibility between the organs of state power and local self-government. At the same time their material and financial sources have to be divided. For this purpose it is essential to adopt a federal law on the general principles of organizing local self-government. Taking this as a base, the organs of power of the components of the Federation must adopt legal acts regulating the structure and powers of the organs of local self-government in their own regions taking account of national and local traditions. The president, the Federal Assembly, the Government, and the components of the Federation must participate in drawing up and implementing regional policy. Possibilities now exist for legislative and executive authorities to exercise a proper influence in this sphere. The appearance of the Federation Council -- the first "chamber of the regions" in Russia's history -- will help substantially to raise the standard of discussion of regional problems. This chamber has a big part to play in developing laws connected with resolving a whole range of the country's regional problems. Committes for Federation affairs and regional policy have been set up in both the Federation Council and in the State Duma. During the development of genuine federalism new problems will surely crop up and we have to be prepared to solve them. One of them is the possible growth of contradictions between the regions. Such contradictions existed before but they were resolved by administrative means from Moscow. But now, by an large, it will be the regions themseves which will have to overcome these contradictions. When an impasse is encountered the president will use conciliatory procedures and set up conference commissions to resolve disagreements between the organs of state power of the Russian Federation and the organs of state power of its components, and likewise between the organs of state power of the federation's components themselves. Treaties between the federal authority and the subjects of the Federation concerning the demarcation of areas of responsibility and powers operate as a most important mechanism for the self-attunement of federative relations. A treaty of this type has been signed with the Republic of Tatarstan. The regulation of relations between the federal authority and the Chechen Republic represents a special problem. The holding of free democratic elections in Chechnya and talks on the demarcation of powers with the federal authorities could become a basis for this. An immediate task is to draw up and adopt basic laws which will make it possible to convey the constitutional principles of the new federative relations into the real pratice of the application of the law. The following laws are necessary: -- on the principles of the demarcation of areas of responsibility and the mutual delegation of powers between the federal "center" and the components of the Federation; -- on the procedure for the admission to the Russian Federation of a new compnent or for the formation of a new component within its composition; -- on the procedure for changing the constitutional-legal status of a component of the Russian Federation.
3.2. Russia's Economic Unity
The divergent starting conditions and nonidentical economic policies of local authorities are intensifying the divergences between different regions, thus forming the potential for the disintegration of Russia. It is intolerable that, when coming into conflict with the Constitution, the authorities of the regions: -- limit the freedom of economic, scientific, technical, amd other contractual relationships between enterprisers of different components of the Federation; -- create obstacles to the movement of goods, financial resources, and to the movement of people across administrative boundaries of territories; -- violate the unity of the principles of taxation. Each region of the Federation is entitled to apply its own tactical methods when implementing the strategic tasks of economic reform. But no region has the right to use these methods in such a way that in fact they would cancel out the common goals, separate it from the Federation, and would inflict direct or indirect harm on other regions. The unity of the Federation's economic space is inviolable. In order to strengthen it, it is essential to ensure the priority development of a unified infrastructure (energy, transportation, communications, information science), and to provide for rigorous sanctions against regions which impede the transfer of taxes to the federal budget or fail to discharge other obligations to the federal organs. The federal authorities, finally, must take exhaustive steps to complete the process of the demarcation of state property both between the Federation's components themselves and also between the federal "center" and the regions. Russia's government should within a very tight timeframe make an inventory of the legal arrangements for the management of federal property located on the territory of the components of the Russian Federation, and of its material condition. The concessions which have been granted to certain regions, some of which are economically inexpedient or simply unfair in relation to the country's citizens living in other territories, ought to be revisited. A system is necessary based on unified criteria for granting concessions with regard to federal taxes and credits. It is essential to render support to enterprises working in accordance with federal programs and create incentives for the development of Russian interregional corporations. It is essential to ensure the unconditional fulfillment of the Constitution by sweeping away any regional barriers in the way of the movement of goods, money, and services. Regions cannot be the subjects of economic relations. Their authorities are not entitled to supplant the true subjects -- the citizens and enterprises -- merely because they are located on a territory which is administratively subordinate to the regional authorities. At the same time it cannot be allowed that the struggle against economic separatism should infringe the rights of the Federation's regions or should lead to the restoration of a unitary state. The course toward the handover to them of an increasingly large volume of powers must continue. Federal authority will undertake support for economically depressed regions through the Federal Regional Development Fund. The main source of money for the support of the weak must be the territorial rent which is emerging in a number of regions on the strength of more favorable natural and geographic factors, and also as a consequence of former preferential state capital investments. While ensuring the minimum necessary level of support for the systems of education and health care and for the institutions of the labor market, the federal authorities must not limit the autonomy of the regions in the choice of their own system of social support for the population adapted to local conditions. It is very important that the efforts of the federal organs of power should be supplemented by energetic and all-around activity by the components of the Federation. The general path for state influence on regional development is not to make direct transfers of money from the federal budget to the regional budget but to use these resources in joint programs on a parity basis. The development of small and medium cities, highway construction and so forth ought, for example, to be approached from this angle. The program for the development of small and medium cities that is with the government ought to be examined, taking this into account. A big role must be played by the territorial organs of federal executive power envisioned by the constitution. It is they that will shoulder the main burden in devising and implementing federal and interregional programs for the territories. Support will be needed for interregional associations operating for the purposes of economic integration. It is a question of the comprehensive utilization and protection of natural resources, regional programs and their financing on a shared basis.
3.3. Federalism and Interethnic Accord
The strengthening of the Russian state is unthinkable without accord among the peoples inhabiting it. A multitude of national problems has been engendered by the contradictory nature of two principles which, right from the beginning, were made the basis of the Russian Federation's state structure: the national-territorial principle and the administrative-territorial principle. This is being manifested clearly today when the redistribution of the functions and powers of the authorities between the federal organs and components of the federation is taking place. Under present conditions the historical necessity for their coexistence persists. At the same time the contradictions between them will be smoothed out on the basis of a new concept, enshrined in the Constitution, of the nation as a community of citizens [sograzhdanstvo]. The Constitution proclaims the self-determination of the Russian Federation on behalf of all its multiethnic people as the vehicle of the sovereignty and single source of authority in the state; and likewise the source of authority in the republics, krays and oblasts is their entire population regardless of nationality. The division of inhabitants into representatives of so-called "indigenous" and "nonindigenous" nationalities is unconstitutional and therefore inadmissible. The equality of rights and freedoms of all citizens regardless of their nationality, as provided for in the Constitution, must be strictly guaranteed. No ethnic group may possess an exclusive right of control over territory, institutions of power, and resources. The equality of rights calls for the necessity to adopt coordinated decisions which take account of the interests of the various national groups. The integrity of the state is based to a significant degree on maintaining the unity of the civic society and the preservation of the diversity of its ethnic components. This is why a democratic nationalities policy is vitally necessary. It must be aimed at solving the following most urgent issues: -- nationalities problems when building the federal state; -- the defense of citizens' rights and of the ehtnic, religious, and linguistic communities which they make up; -- the enthno-cultural development of the peoples of the Russian Federation; -- the prevention and settlement of interethnic conflicts. Above all the state is obliged to create conditions enabling the representatives of various nationalities to independently determine and implement their own social and cultural objectives and to form associations, unions, and other institutions of a civic society. In the economy this means above all the freedom of enterprise and equal rights of property for the citizens of all nationalities. In politics it means maintaining the national groups' diverse forms of self-government. The self-organization of ethnic communities which do not have their own national-territorial entities on the territory of the Russian Federation or which live outside the boundaries of such entities is possible in various forms of national-cultural autonomy. The legal foundations of their activity is to be determined by the government and Federal Assembly. The Federal, republic-regional, and local authorities are obliged to defend human rights in the ethnic sphere and give preferential support to the least protected ethnic groups. It is the state's task to preserve vulnerable ethnic cultures and communities, especially in the regions of the European North, Siberia, and the Far East. The pursuit of economic reforms in these regions must be accompanied by a package of measures to defend the rights of numerically small peoples, including: -- budget financing of traditional sectors of the economy and social sphere; -- the development of the social infrastructure of national settlements and the development of special forms of medical services and education taking into account the specific features of the way of life of numerically small peoples of the North; -- the preservation of language, culture, and traditional habitat. Priority state support is also essential for all ethnic categories of refugees and enforced exiles from zones of interethnic conflicts. Such problems are especially acute in the North Caucasus. This year will see the 50th anniversary of a tragic event -- the forced resettlement of many peoples of Russia from their native localities. Overcoming the consequences of a repressive nationalities policy is one of the priority tasks of organs of power at all levels. Interethnic accord, readiness for dialogue, and a quest for compromise are especially important in solving these very complex problems. The preservation and strentghening of the federative state depends directly on the national self-awareness of the Russians. In Russia Russians constitute the absolute majority of the peoplation -- 83 percent. They are not threatened by assimilation, a tendency to forget their mother tongue, or by the loss of their national originality. At the same time it is impossible to deny the existence of a number of problems which are being encountered by Russians especially in certain republics of the Federation and in regions bordering on zones of interethnic conflicts. The same basic principles of a democratic nationalities policy are being applied in their regard, to wit: -- national parity with other peoples on the territory of all components of the Federation, and in particular equality in the use of one's mother tongue in official relations and in social and cultural life; -- the right to ethnocultural self-organization; for example, by setting up regional-cultural associations on territories where Russians are in the minority; -- state support for programs for the revival of the regional diversity of Russian national culture and, of course, for Russian settlers. The state will strive to accept all migrant fellow countrymen and to give priority help in accommodating and finding job placements for socially unprotected groups of migrants and also for those of them who are headed for regions whose development is of special significance for the country. In Russia the Federal authorities have displayed sufficient reserve and prudence which have made it possible to avoid a situation whereby constitutional conflicts with a number of republics might develop into interethnic confrontation. The organs of state power have still to devise a concept of state policy for Russia for averting and settling interethnic conflicts. It must be based on the principle of the primacy of peaceful political means of resolving contradictions that crop up. At the same time the state is obliged to use all legitimate means, including force, to immediately localize armed clashes, to disarm illegal military formations, and to nip in the bud the activities of organizations and persons preaching ethnic strife and calling for violence. On the whole the policy of interethnic accord must occupy one of the leading places in the state strategy for the development of the Russian Federation. In order to implement this policy the following package of draft laws needs to be elaborated: -- on national minorities; -- on the status of national councils, rayons, okrugs, and settlements and on national-cultural autonomy; -- on the development of ethnic cultures and languages; -- on forced migration and refugees from zones of interethnic conflicts.
4. Toward A Social State Through Market Reform.
4.1. Reform Reserves
The economy of the transition period is always unstable. If a state is weak, instability grows, reform grinds to a halt, and economic activity is destroyed. In a strong state, stabilization is achieved more quickly, and reform creates the preconditions for economic revival. Unless the state is strengthened, Russia will find it impossible to overcome the crisis and implement a profound reform of the economy. Right now, the situation in the economy is highly alarming. Mutual nonpayments are bringing enterprises to a halt. Prices continue to rise. In January 1994 the rate of inflation rose again to hit 22 percent. People have not been paid for months. Social tension remains high. In August 1993 the government adopted an action program, which it is trying to carry out. The authorities of many regions, now in possession of sufficient freedom to effect market transformations in which millions of people are taking part, are taking vigorous action. However, the economic situation is not improving. An analysis of what is happening is required. Real economic reform in Russia was inevitable. Any deviation from the strategy of reform will place the country on the brink of catastrophe. The state's political line must be single-minded: There will be no turning back. The reform is intended to transform the economic mechanism in a radical manner, to render it efficient, and to make it work to people's advantage. Now, two years on from its beginning, it is possible to sum up the results, to compare the gains and the losses, and to define the reserves. The reform can be credited with the dismantling of the basic elements of an outmoded administrative system, and the switch to economic methods of regulation. The first stage of privatization, without which reform would have been impossible, is drawing to a close. Within a short space of time private ownership, almost wholly eradicated in past decades, has once again became a reality. There is evidence of changes in the economic psychology, the gradual adjustment of producers and consumers to market conditions. Economic activity, prices, and foreign trade have been liberalized. Business activity is moving from the state to the nonstate sector. A consumer market has started to function. Russia has a sizable foreign trade surplus. For the first time in many years grain imports have dropped significantly. There has been success in achieving the domestic convertibility of the ruble for current transactions, and in creating specific currency reserves allowing us to maintain vital imports and the minimum required payments against the foreign debt. Gradually, Russia is becoming integrated into the world economy. The results observed are considerable if compared with the situation on the eve of reform. They have been achieved primarily through the efforts of the millions of people who have accepted reform. Despite all the difficulties of the first years of market reforms, people do not want to return to the old ways. The results are modest if you think of what might have been, given normal political conditions and without major errors on the part of the authorities. The reform of the economic mechanism is far from over. Its reserves are significant, and they must be utilized in full in 1994: -- the institutions of a market economy; -- a system of state management; -- demonopolization; -- taxation; -- economic legislation. Upon completion of the check stage of privatization, a qualitatively new stage of this process will begin. An increase in investment activity, a weighty contribution to the structural overhaul, the creation of a competitive milieu, and the formation of a full-fledged stock market will become the central problems. Although Russia already has the bases of a market economy infrastructure, this infrastructure is distributed highly unevenly. In particular, the country does not have effective institutions guaranteeing the operation of markets for equipment, land, accommodations and other immovable assets, securities, and wholesale trade. The Federal Government and the regional authorities have no right to be indifferent to this. What is more, the institutional aspect of the reform must become the vanguard. The Federal Assembly will be acting correctly if it lays a firm legal base for Russian enterprise. The main thing is that it should be stable. The bodies of state power need to simplify considerably the procedures regulating private business activity. The complexity and inconsistency of regulation hinders the development of enterprise and nurtures corruption. Preferential state support is required by those entrepreneurial structures which are operating in priority areas of the reform. The Federal Program of State Support for Small Enterprise is to guarantee this in 1994. The most pressing tasks for 1994 include the formation of a modern system of accounting and the start of the far-reaching reform of the Central Bank with the aim of creating a Russian Federal Reserve System. Given that the actions of the Central Bank have key significance for the fate of the reform and wide sociopolitical consequences, the process of reforming it will be under the president's control. The year 1994 must become the year of the formation of Russian financial-industrial groups. It is for the government to monitor that they are set up on a strictly voluntary basis, and to guard against the resurrection of the old ministerial structures, the misappropriation of state property, and unjustified monopoly. Such institutions are capable of maintaining a sufficient level of investment activity and technological innovations, and of ensuring the concentration of resources in areas of growth and the necessary competitiveness both on the domestic Russian market and on the world market. The alternative is only too clear: The rapid suffocation of Russian entrepreneurial structures by the foreign multinationals, with the exception, perhaps, of those operating in the raw material sector. It is necessary to set in place without delay institutions guaranteeing the implementation of state structural policy. In the agrarian sector it is time for the government and the regional authorities to set up mechanisms to realize the right of private land ownership, and to help construct a modern banking infrastructure. A rational protectionist policy is required, protecting the interests of national producers but without perceptible damage to consumers. In 1994 it is necessary to begin a radical alteration of the entire system of state support for the agrarian sector. This does not mean meeting any financial requests from the sector, but instead a real reform of its economic mechanism -- this must be the main principle. The state has as yet failed to bring about the effective regulation of the economy, in particular the management of enterprises belonging to it. Owing to this, many enterprises to this day do not bear full liability for the results of their activity, hoping to get support from the budget even in the event of continuing with clearly inefficient production. Everybody knows where this kind of support leads -- to new spirals of inflation, the slowing of the structural overhaul, and a drop in economic efficiency. It is precisely for this reason that reform is not progressing as quickly as it might at the level of state enterprises. In place of the old links of the administrative system, new administrative structures have emerged and strengthened, many of which are by no means obligatory in market conditions. Although a bureaucrat no longer doles out plans and allocates funds, he is no less powerful insofar as he distributes centralized credits and investments, allocates export quotas, and issues licenses. As a consequence of this, not only is management efficiency lost but the economic base of corruption is reproduced. The government has been unable to impose the requisite order here. The de facto nonownership of property and the management "vacuum" in the state sector must be eradicated in 1994. Serious changes in legislation are overdue: the norms prescribed for an economy of centralized planning and economic accountability are now inappropriate. The state's attitude toward its own enterprises must be that of a proprietor. This will stop the squandering of state property to the advantage of the mercenary interests of certain economic managers, increase the efficiency of its utilization, and, by shedding nonviable production facilities, maintain the viable ones. The creation of a regulatory system for the market econmy is not a retreat but a move forward, a development of the reform, a strengthening of the Russian state. In a badly managed economy there will never be true market-based order. As before, its formation is hindered by loss-making monopolism. So deeply have monopoly structures taken root in the Russian economy that demonopolization will take some considerable time. The task in the coming years is to reform the monopolized economy -- this circumstance has to be taken fully into account. In order to make rational use of the antimonopoly reserve of the reform it is necessary to broaden the appropriate legislation and to demand greater accountability from the state bodies implementing it. The formation of a competitive medium will be aided by measures stimulating private enterprise and the formation of multiprofile companies, and by a well-balanced foreign trade policy protecting the economic interests of Russia, not by inefficient monopolist formations. The effective transformation of the tax system will help economic reform along considerably. It should be clear and stable, at least, for the duration a year. The number of taxes should be reduced, and the procedure for levying them should be considerably simplified. The changes to the taxation system must support the producers, particularly those working in the consumer market; they should also stimulate investment and prove highly effective for the economy as a whole. We should also think hard about bringing into play mechanisms that will make it impossible and disadvantageous to evade taxes. Massive attempts to conceal income from taxation are more intolerable. In the final analysis we must learn to collect everything that is due to the state. The budget will feel the benefits of such a policy immediately, and the budget deficit problem will become less acute. This is especially important inasmuch as it is becoming ever more difficult to resolve this problem by cutting expenditure. The government should put forward legislative initiatives that envisage shifting the center of gravity onto taxation of natural resources and real estate. We need to tighten up financial penalties for those who pollute the environment, without, however, undermining the competitiveness of Russian output on the world market. The substantial consolidation of tax breaks for capital investment and innovative activity is in the interests of production. We urgently need to make a breakthrough in the sphere of legal backup for market reform. Economic legislation lacks unity. Hitherto it has proved impossible to fully regulate legal relationships between the Federal Government and the regional authorities. The competence of state bodies at one level has not been demarcated. Draft laws slated for submission to the Russian president and State Duma in 1994 include the RF Civil Code, which includes a general and a specific section. Its adoption would create an all-embracing legal basis for a market economy, a society of civilized property owners, economic freedom for the individual, and partnership relations between the citizen and the state. The Civil Code embodies new principles of entrepreneurship, relationships between economic players, and other key reform issues. Draft codes on housing, labor law, joint-stock company law, and contractual partnership are being prepared. The same goes for taxation and agrarian legislation, and for changes and supplements to laws on bankruptcy, competition, limitations on monopoly activity, and the peasant (private farmer) economy. Of extreme importance are legislative acts regulating the circulation of securities, foreign investment, concessions, and the functioning of free economic zones. A new law on the banking system is also needed.
4.2. The Price of Reform and Ways of Reducing It
Economic reform is not painless and free of charge. Losses are inevitable, and the central political problem is to ensure that the cost of market transformations is not too great for society. We have not managed to achieve this. The high cost of reform is explained, first, by the unfavorable starting position. At the end of 1991 the economy was in an extremely grave state. The effective abandonment of the totalitarian system's mechanism coincided with the USSR's disintegration and the severing of economic ties. The consumer market was devastated even earlier, foreign currency reserves were exhausted. The production slump deepened. The ruble was washed out of circulation and barter flourished. By postponing necessary reforms for decades the totalitarian regime exacerbated all problems to the utmost and exhausted the national economy's durability margin. Russia inherited from the past a cumbersome production structure dominated by the military-industrial complex and monopolism, and exports geared to raw materials. Inflation began much earlier than 1992. This disease ravaged our economy for many years, taking the form of a universal commodity shortage, distribution by ration coupon, and waiting lines kilometers long. When price liberalization was launched, inflationary energy that had been pent up for years burst out. Second, the price of reform is determined by political circumstances. Two years of reform in Russia were accompanied by a most acute confrontation between the branches of federal power during which they weakened each other, and that means the state as a whole. The transfer of the struggle to the sphere of economic policy had very grave consequences for the country and especially for reform: weak legislative support for market transformations, delays in reform, accelerated inflation -- this is by no means a full list. Third, the downside of the reform was attributable to mistakes by the bodies of state power responsible for reform. The government took poor account of the consequences of some decisions, postponed the adoption of others, was slow to make considreed corrections to reform, and underused the reform's reserves. This was especially noticeable in recent months, when the government not so much advanced the reform as reacted to the problems arising. The pause in reformation became protracted. It is time to end it. The experience of the past two years shows that it is not only the reform itself that is turning into the well-known losses. Even greater harm is being done by delaying overdue amendments to the structure of the economic mechanism. One of the main ingredients of the cost of Russian reform is persistently high inflation, the endless rise in prices. This is inflicting enormous damage on the reform itself, the poulation's quality of life, and the economy as a whole. In conditions of unrestrained inflation the crisis is insurmountable. The capital investment situation remains extremely grave. The basis of the investment crisis is high inflation, as a result of which money is going not into production but into brokerage. There is practically no more budget investment, there is still no share market -- such is the inevitable combination of the transition period, the negative consequences of which for investment are perfectly clear. Because of inflation credit has become not only expensive but also primarily short-term. Consequently the future of Russia's economy is under threat. The inertia of the economic slump persists. In a number of sectors the real degradation and destruction of production is under way, with a fall in output in 1993 by 25 percent and more. High-technology machine building is in a very difficult situation. Some plants are surviving only by switching to production of technologically obsolete equipment, slipping to the level of the sixties. Although we are producing less than before, consumption of raw materials, fuel, and energy remains considerable. Efficiency is falling. The reality of the transitional period is that Russian industry could become a market industry, but one that is primitive and inefficient. Such a payment for market reform would be inordinately high. In two years of reform the government has simply been unable to elaborate an effective structural policy. This inaction will cost the Russian economy dear. Production is being greatly harmed by the crisis of mutual nonpayments. Not only the economy but also the social sphere is suffering, because hidden unemployment is increasing, wages are not being paid on time, and local budgets are failing to collect a considerable proportion of taxes. If we delay a solution to the problem, massive nonpayments will continue to promote the closure of enterprises and intensify the production slump. The social cost of reform proved to be very great indeed. On the one hand the reforms cannot be allowed to founder, which will merely intensify the difficulties being experienced by the people. On the other hand the threshold of social shock must not be exceeded. Otherwise the population's willingness to support market reform will come into sharp conflict with the fear of being crushed by it. The greatest fears are caused by poverty, glaring inequality, and unemployment. The country is suffering losses because of weak control over the export of resources and unfavorable foreign trade conditions. The general economic instability and deficiencies in foreign currency control are having the effect of leaving a considerable proportion of export earnings sitting in Russian enterprise accounts abroad. The state is obliged to reliably protect national interests. Otherwise citizens' confidence in any of its actions, including reformatory actions, is undermined. The cost of reform has proved to be high. The trajectory was correct but the flight was accompanied by serious mistakes. Not only the Russian economic mechanism remained largely expenditure-driven. Likewise the political mechanism. The failings of the reform and its reserves are clear. The most important task now is to make market transformations less onerous for society without reducing the pace of reform -- and even increasing it. Despite the fact that the rate of price increases is high, there are possibilities of restraining inflation. A monthly inflation level of 3-5 percent by the end of 1994 specified in the Government Program should serve as a guideline. If it is possible to reach this line and sustain it and make price dynamics predictable, according to current Russian standards such inflation could be considered acceptable. The aim is achievable only given joint constructive work between the Federal Assembly and government. Other prerequisites are: coordinated actions between the Finance Ministry and Central Bank in the sphere of credit policy, scrapping wasteful subsidies and support for unprofitable production facilities, cutting the budget deficit and setting its maximum size every quarter, swiching to deficit financing by placing the state's debt commitments in domestic and foreign financial institutions, and only granting credits to CIS countries which are secured on property and other assets. The slowing of the rise in prices will be assisted by a considered pricing policy in those sectors where monopolism is a natural characteristic and is attributable to the specific features of production, for example in electric power engineering and railroad transport. The prices race cannot be halted without a consistently anti-inflationary monetary and financial policy. But the government must also use other anti-inflationary levers, specifically any reserves in structural investment and taxation policies, and the mechanisms of social partnership. Any economic policy actions of the federal authorities must be tested for inflation safety. The maximum permissible level of inflation must not be exceeded. This requirement must be strictly observed. Otherwise intervention from the president right up to the use of his constitutional powers cannot be ruled out. The government will not find it easy to fulfill this requirement. Especially now, when it is faced with clearing debts to the defense sector, the agro-industrial complex, and budget-funded institutions, and repay debts to northerners. But if the government requires others to observe financial discipline then it must start doing so itself. Commitments assumed must be met. And greater responsibility must be shown in the future. Another serious problem is the setting in motion of mechanisms which make it possible to overcome the nonpayments crisis and to stop the closure of viable enterprises. It cannot be ruled out that, relying on the law, it will be necessary to take tough administrative measures against leaders of state enterprises who, while having funds available in accounts, refuse to pay suppliers and demand money from federal authorities. The nonpayments crisis is taking on a political hue and is becoming a threat to the country's national security. The president's actions will be commensurate with the situation. The lack of real action by the government and Central Bank on the problem of enterprises' mutual indebtedness is more inadmissible. We must introduce the elaborated scheme for clearing the state's debts to commodity producers and implement other planned measures. Let us hope they operate effectively and help break the chain of mutual nonpayments without fueling inflation. In 1994 we must start to register debts in the form of securities, to reorganize and revitalize economically insolvent enterprises, and in some cases to apply the bankruptcy procedure. This is especially necessary because, the government believes, the stabilization of the investment process can be expected this year. It is essential to halt the technological regression of Russian industry, to prevent this process becoming irreversible, above all in sectors which are highly competitive in the world market -- the aerospace, laser, and atomic industries, shipbuilding, space services, and those devising software programs. The government should clariy the prospects for the defense order and meet the financial commitments it has assumed without delay. The carefully conceived conversion of the defense complex is no less important. There are also other priorities, which are contained in the Government Program adopted 6 August 1993. If market forces alone are relied on, the solution of structural problems will be something for the distant future, an extremely expensive process associated with considerable expenditure on restoring what has been lost. An effective structural policy will help to reduce the costs of reform. The government must establish a uniform procedure for the granting of state support and strict control over how it is used. The distribution of centralized investment resources should be carried out on a competitive basis. The distribution of benefits on an individual basis must be kept to a minimum and regulated. This applies to both industry and agriculture. Under the Constitution, Russia is a social state. Therefore Russian citizens must be confident that the legislative and executive branches will exercise control of the observance of the individual's basic social rights. I am referring to the length of the working day, a guaranteed minimum income, the situation of the unemployed, protection for mothers and children, prohibiting the use of child labor, housing provision, the right to a vacation, etc. What is needed is a firm legislative base which specifies the state's duties and responsibility to citizens and the mechanisms for their implementation. Ensuring the requisite level of social protection will become an immutable requirement made of government economic policy. Only a state program which does not cause an intolerable reduction in basic social indicators must be adopted for implementation. If the government is incapable of ensuring compliance with the social rights of citizens enshrined in the Constitution, it means it is not working skillfully enough. The population's legitimate interests will be protected by the authority given to the president by the Constitution. The state's efforts should be concentrated on the following main areas. -- stabilization of the population's living standard; -- broadening of incentives for labor and entrepreneurial activity by economically active citizens; -- targeted support for the least protected social strata; -- a more equal sharing of the burden of the economic crisis among various groups of the population. It must be recognized that there is an urgent need for a package of documents relating to the social protection of the population, which will be based on the Law on the Subsistence Minimum and other enactments of the Federal Assembly. Every citizen of Russia must be ensured the necessary minimum level of goods and services. And this should form the basis for determining the level of the minimum wage, pensions, grants, and allowances. A unified system of social guarantees will thereby be built. Support for the needy, an effective income tax, and actions by the state to speed up the structural improvement [strukturizatsiya] of the consumer market, a review of concessions for certain enterprises and regions, and, needless to say, a reduction in inflation will be needed to reduce unwarranted differences in real incomes. Comprehensive reform of the system of social services is needed, making provision for social guarantees for the needy, along with the introduction of charges [platnost]. A switch to a two-tier system of pension provision is needed, whereby state pensions will be supplemented with payments from citizens' individual accounts in pension funds accumulating personal savings. It is necessary to create financial reserves in good time, using them to fully provision federal, regional, and other employment funds. The proper amount of unemployment benefit and other payments linked with the loss of jobs must be issued, and without delay. In 1994 employment policy will have to be considerably stepped up. Urgent economic measures may also be necessary in areas where the level of unemployment exceeds socially tolerable limits. The government must continue to provide gradual compensation for private savings wiped out by price liberalization. Mechanisms are needed to curb and delay the effects of inflation. The task must be performed not just because in early 1992 most holders of savings did not have the slightest chance of rescuing them from depreciation. The problem goes deeper than that, affecting the authorities' prestige and the degree of government and parliamentary responsibility for their predecessors' social pledges. The state and society cannot do without social partnership institutions which enable tasks to be performed on a national scale. This may include, for instance, the regular coordination of the positions of the government, entrepreneurs, and trade unions within the framework of a tripartite commission. The federal unification of foreign trade procedures, the abolition of unwarranted concessions for regions, sectors, and certain enterprises, and a move to the sale by tender of export quotas will help reduce the cost of reform. It is necessary to continue the policy of liberalizing exports as well as tightening up state control of exports of strategically important raw material and energy resources. A targeted state program providing incentives for science-intensive commercial exports will be needed. The government must step up currency control. Tough penalties are needed for offenders who illegally stash hard currency resources abroad. At the same time private holders of hard currency must be given state guarantees to protect them against having these assets confiscated or frozen. Russia will escape from the crisis and continue reform autonomously and develop economic relations with other states and international financial organizations on the basis of equality and national interests. The Federal Assembly and the government have much to do to ensure that investment in the Russian economy becomes more appealing to foreign firms. At the same time it is clear that the latter will refrain from major investment until stabilization is established and until Russian entrepreneurs start investing capital in the Russian economy. The Russian state must consistently uphold the interests of Russian companies on the domestic and world markets. Thus, in present conditions economic policy must be structured in such a way as to ensure that two strategic objectives are met, to whit: -- continuing reform and changing the actual structure of the economic system; -- reducing the cost of reform, i.e. combating inflation, structural crisis, poverty, unjust inequality, and enforced unemployment. In 1994 there will be tough sociopolitical restrictions and little freedom for maneuver. It is all the more necessary for the state bodies responsible for economic policy to pool their efforts. These must be concentrated on the main task -- the reform of the economic mechanism. Reform will gain a second wind if we energetically implement urgent institutional transformations, start a qualitatively new phase of privatization, lay the foundations for an effective system of state regulation, use the available reserves of demonopolization, reform taxation, adopt vitally necessary legislative acts, and provide the mechanisms for their implementation. It will then be possible with the help of a well-considered economic policy to steer the Russian economy between hyperinflation and a drastic decline in production, avoiding both, and render market transformations less cost-based. There is no other way to restore the economy than by continuing reform. Russian state bodies must do everything to ensure that 1994 is the year that sees the rate of inflation gradually drop, the fall in production diminish and come to a halt, vigorous structural transformations based on the removal of inefficient production units and support for points of growth, and the stabilization of living standards for the bulk of the population. This year the preconditions may be created not only for economic stabilization but also for the start of steady economic growth. Only a professional and responsible Federal Assembly and government can do this. That is precisely what the country expects of them.
5. From a Monopoly Ideology to Cultural Diversity
5.1 Development of Culture, Science, and Education
Russia's wealth lies in its unique spiritual and intellectual potential. At the most difficult points in our history, our inexhaustible reserve of spiritual strength has saved our country and allowed it to withstand and overcome inconceivable obstacles. But today problems in the cultural sphere are being felt more and more keenly. The totalitarian state ideology, whose mouthpiece was the CPSU and which held sway for decades, has collapsed. It has been replaced by the realization of a natural historical and cultural continuity; an understanding of the realities of the modern world and Russia's place in it; the value of the individual and his dignity; an effort to bring the state into line with human nature; and the restoration of natural proportion with regard to society and the individual. But these improvements signaling a return to spiritual health have still not been transformed into a system of social and cultural standards. The result of all this is that there has been a loss of moral reference points. This is manifested in: -- a loss of interest in questions of principle concerning our life in society overall, and in particular among the intelligentsia; -- an undermining of people's moral foundations, a dehumanization of life and culture, and an increase in extremism in literally all spheres of social activity -- from economics to culture; -- the destruction of a core world view, a readiness to believe in any random illusion, any speculative idea, and at the same time in nihilism and absolute nonbelief. All these trends are alarming, and the Russian State's main task is to overcome them. If this is not done it will not be possible to regenerate the country or the Russian people's dignity. It is time to recognize that culture cannot survive without the state's taking an active part in its future. During the whole of Russia's thousand-year history, culture and people working in the cultural sphere have not enjoyed so much creative freedom and political independence as today. But it is at this very moment that the problems of the "country becoming culturally impoverished," the "destruction of talent," and poverty among writers, artists, scientists, and museum and library staffs have reared their ugly heads. Creative people are becoming hostages to commercialization. Culture and art are beginning to lose their old role in public life. The vital issue for 1994 is the establishment of the best possible relations between the state and culture. The extreme positions which should be avoided at all costs are well known: -- freedom in itself is no guarantee whatsoever of flourishing creative activity; -- if cultural activities are even in part maintained under duress, they will sooner or later grind to a halt. Creativity and coercion are incompatible. No directives coming from above will genuinely be able to improve culture. Russia has a vital need for a national cultural policy. It is not a question of the relevant ministry or ministries having a program of measures or of the Federation components having a certain set of plans of action for culture. Cultural diversity never fitted into any framework laid down by government departments or into the administrative-territorial organization of the country's activities. The state should propose federal programs for preserving and developing national culture and stimulating its diversity. Our opportunities are limited in the context of the economic crisis. But the budgetary obligations which the state is taking on should be carried out. Society should know what proportion of the budget will be spent on culture, science, education, and public health. One task for the future is to go over in practice to a multichannel system of financing culture. The federal and regional authorities and the organs of local self-government should bear its costs. Charity may provide significant backing for culture, especially if the government is finally able to stimulate this by tax incentives. A law on charitable funds and charitable activities is necessary for this. Our immediate tasks include developing a legal base for culture, in particular providing a legislative definition of the legal status of cultural organizations. And preparing a draft law on noncommercial organizations. Its adoption will permit us to put the resolution of many acute social and cultural problems on a strict legal basis. In the context of privatization and the transition to new land relations, a task for the authorities at all levels is the conservation of historical and cultural monuments, historical complexes, reserves, archives, museums, and libraries. The cultural heritage is a special kind of state property which requires special regulation. It is necessary to elaborate and adopt laws protecting the cultural heritage of the Russian Federation's peoples and museums and their collections and to take the specific nature of culture into consideration in general laws. This affects first and foremost tax legislation, in which it is necessary to switch to a comprehensive system for supporting culture, people involved in culture, and their professional associations. It is necessary to make appropriate changes to the Criminal Code, the Code of Penal Procedure, and the Code of Administrative Violations, making provision for stiffer penalties for crime against the country's cultural heritage. Strengthening Russia's statehood is inconceivable without science's development, the sense of which is absolutely clear now: There has to be a natural integration of science and the new market conditions. It is a question of creating the conditions for introducing academic developmental work of an applied nature, of carrying out various types of scientific and scientific-technical work and services to help execute major projects. It is essential in 1994 to pay particular attention to the fate of the so-called science cities like Arzamas-16. Having at their disposal a unique scientific and technical potential, they can become centers for generating new knowledge, technology, and modern education, conduits for innovative technology to all areas of the national economy, a basis for developing state scientific centers and the conversion of industrial plants. The Russian Federation's system of scientific research institutes was created over many years through the work and talent of many generations of Russians and as a whole is very advanced. In a number of areas of knowledge, particularly technology, our science is falling behind world standards, but to a much smaller degree than in other spheres (agriculture and industry). However, changes are required in the forms of scientific management which developed in the context of the unitary state. They cannot be transferred to market conditions in their previous form. The basic aim of all restructuring in science is to create favorable conditions for the creative activities of primary scientific collectives -- not of institutions and departments -- and for free competition among different schools and tendencies. The scientific-technical revolution resulted in a serious overrating of the relative values of the material and intellectual components of the national wealth. It is intellect, represented among other things by the high technology of the technotron age, which is a decisive source of rapid industrial and agricultural growth. Without the development of fundamental scientific research as a matter of priority, this decisive source will dry up or will become less active. Fundamental theoretical research in the fields of philosophy, history, sociology, psychology, and law is needed to bring the humanities side of our culture up to a level worthy of the best traditions of Russian thought in the humanities and, in the present crucial period in Russia's development, to create a spiritual and intellectual basis for social change. The state must continue with the budget financing of fundamental research and fundamentally new technologies. Permanent state support for the universally recognized fundamental scientific research center -- the Russian Academy of Sciences (understood as a system of scientific institutes) -- is also required. It is important to adopt a law on science and scientific-technical policy. It is also necessary to elaborate legal measures which would make it possible to expand the inflow of funds from republic and other regional budgets for the financing of projects being carried out in the interests of republics and regions. Legislative acts on scientific research organization, on scientific and technical expertise, and a number of other topics must also be prepared. A regime of full public information is necessary in terms of the volumes and deadlines for the allocation and distribution of state budget funds at all levels, and also full and open accountability for all expenditure. Budget financing should be supplemented by competitive financing, which, in the face of a deficit of resources, will promise the most effective use of funds. While not underestimating the significance of broad international cooperation, all the necessary conditions (earnings, equipment, libraries) must be created for our scientists to be able to work efficiently in their own homeland. The situation in colleges and universities is no less difficult. Young teachers are leaving Russian institutes of higher education, the prestige of this profession is falling, and the socioeconomic position of scientific-pedagogical and research cadres has deteriorated sharply. Resolute steps to ensure more effective use of both the educational and the scientific potential of colleges and universities must be taken in 1994-1995 and not put off until the future, and the existing forms, as well as the integration of science and higher education, must be expanded. This applies to fundamentally new forms of mutual relations between science and institutes of higher education -- the creation of scientific education complexes and the preparation of joint scientific programs, projects, and text books for schools and institutes of higher education. The Russian higher education system must be given greater stability. Regional scientific educational programs must be funded on an equal basis from the state budget and territorial budgets. The active participation of local budgets in resolving questions of the development of the material base and the social protection of students and workers in higher education is required. Spiritual and intellectual perfection will not appear on its own. The reform of our society must presuppose the fundamental reform of the education system, starting with the aims of education, its economic foundation, and the running of the education system, and ending with the system of training and retraining specialists, the structure of schools, and the content and technology of education. The development of a modern society urgently and increasingly requires independence of thought and the ability to make decisions. The modern mass school is not geared to forming these individual qualities. Solving educational problems is impossible without improving the running of the education system. The following must be singled out especially: -- the implementation of a federal program for the development of education; -- the demarcation of the competence of educational administration bodies at various levels; -- the transition to state-public forms of administration; -- the use of flexible mechanisms of administration, envisaging the attestation of workers in education and educational institutions and the licensing of educational activity. A very important step has already been taken -- the Law on Education has been adopted. This law has unfettered the school and de-ideologized it. But it is precisely in schools, more than in any other sector of industry, science, or culture, that we are not yet ready for freedom and creative work. The centralized financing of the schools from the state budget has become an objective obstacle to their development. Obviously, even now some of the expenditure must be borne by the state budget. This primarily means capital construction. The other part should be covered by municipal funds. Russia does have experience of doing this. The practice must be revived in the law on local self-government. An enormous role in the funding of schools can be played by local educational funds and school boards of trustees if a sensible taxation concession system is drawn up. Fundamental changes are also necessary in running the education system. So far this work has been carried out by the actual administration workers in their own interests. The overall number of administrative workers per student has increased continuously. The new education system must be geared to the child, a more comfortable life for him, and his optimum development. Federal laws must be elaborated and adopted on: -- high school education; -- college and university education; -- further professional education; -- the privatization of state and municipal educational institutions.
5.2. Inter-Religion and Multiconfessional Dialogue in a Secular State
Russia is a state with a variety of religions; dialogue among them is one of Russia's traditions. Russia's history shows us experience of this dialogue, conducted both by religious figures and through contacts among believers from different religious groups. The experience of neighborly coexistence, mutual understanding, and mutual assistance among communities and spiritual centers of different religions and faiths is particularly important for us today. The experience of Russian state policy, developing as it does in a multiethnic, diverse religious environment, is equally important. For over 70 years Russian society lived in conditions of effective state atheism. However, the age-old people's principles were not totally destroyed. The revival of interest in religion is a fact of modern life. Consideration of this factor in the activity of state bodies and the maintenance of interreligious peace in the country are an abiding value and a long-term task. The actual rather than merely verbal renunciation of the policy of state atheism; religious dialogue; and proper relations between Russia's churches and religious associations is one of the conditions for civic peace and general conciliation in society. The legislative and executive authorities must do everything to preclude the very possibility of ethnopolitical conflicts developing into interreligious conflicts especially since, strictly speaking, none of Russia's peoples is entirely uniform in religious terms. State bodies at all levels must rigorously observe the adopted norms, which are designed to ensure genuine freedom of conscience in Russia, restore the justice with regard to Russia's churches and religious associations that was violated during the postrevolutionary period, and help normalize their traditional activity. At the same time it must be borne in mind that the church is separate from the state but not from society, with which it historically is closely interconnected. Special attention must be paid to the legal and property status of churches and religious associations, their centers, parishes, monasteries, spiritual education establishments, and other establishments.
6. Russia and Security in the World
6.1. Military Security
One of the most important aspects of strengthening the state system is to ensure the military security of the Russian Federation. The RF Armed Forces and other troops are designed to: -- defend the sovereignty, territorial integrity and other vital interests of the RF in the event of aggression against it or its allies; -- suppress armed conflict threatening Russia's vital interests and any illegal armed violence within Russia, on its State Border, or on the borders of other states in accordance with treaty commitments; -- conduct peacekeeping operations by decision of the UN Security Council or in accordance with the RF's international commitments. In view of the changes in the geopolitical situation a tremendous amount of work has been carried out on the organizational development of the Armed Forces: Combat strength has been determined, new groups of troops (forces) have been created, mobile forces are being formed, strategic, operational, and mobilization planning for the use of the Armed Forces has been completed, and the number of fully manned, combat-ready units and combined formations has been increased. As a result the RF Armed Forces are combat capable and by and large fulfill their assigned tasks. The main attention should subsequently be geared to military-legal reform, continued organizational development of the Armed Forces, and their in-depth reform. The fundamental principles of legal support for the Russian Army have already been created; however, some of the provisions are not in force owing to the lack of a mechanism to implement them and the lack of sources of funding. Amendments and addenda must be made to military legislation. Basic Provisions of Military Doctrine have been adopted for the first time in Russia's history as a normative-legal act, establishing the main guidelines for the development of the Armed Forces and other troops in the military-political, military, and military-technical spheres respectively. The adopted military doctrine effectively represents the concept for military security -- an integral part of the unified concept for Russia's national security. Military organizational development must be conducted in strict accordance with the Basic Provisions of RF Military Doctrine. Around 20 new draft laws will also have to be prepared and examined. On the basis of constitutional principles it is necessary to step up legal protection for Armed Forces servicemen and civilian personnel, military command and control organs, and troop units. Effective interaction among the appropriate structures of the Federal Assembly, ministries, and departments must be ensured in the interests of implementing military-legal reform. The formation of the Armed Forces in line with the new conditions must be completed in full in the period 1994-1995 and a base created for their in-depth transformation. In view of the special features of the RF's geopolitical position, reform of the Armed Forces is based on the principle of mobile defense -- the creation of relatively small but relatively powerful forces, ready for immediate use in areas where a real threat to Russia's security arises. The strategic nuclear forces will continue to be the main means of deterrence against war being unleashed. Experimental-design work will be vigorously developed in military-technical policy, making it possible to provide a suitable response to existing and potential military threats and military-technical breakthroughs [proryvy]. The tasks of ensuring the country's nuclear security and equipping the Army and Navy with state-of-the-art combat command and control, communications, reconnaissance, and radioelectronic warfare systems are regarded as being of paramount importance. The Program for Military Organizational Development is to be implemented in the immediate future. It is advisable to formulate and adopt a package of normative-legal acts defining the procedure for the implementation of military organizational development as a whole. In 1994 the withdrawal of troops back to Russian territory is to be completed in the main. This task is being performed in a systematic manner, taking the real situation into consideration. The troop withdrawal is, however, still considerably outstripping the pace of structural development for servicemen. It is necessary to ensure the rigorous implementation of the State Housing Program for Servicemen and Their Families. The government is assigned the main supervisory and organizational functions here. The planned reduction in manpower is being carried out. However, the manning problem remains one of the bottlenecks in military organizational development. It can only be resolved over the next few years by employing the mixed method of manning (by contract and draft). The reorganization of and force reductions in the Armed Forces are making it possible to change the structure of the military budget considerably and confer on it a greater social thrust. One of the most important tasks on the state scale is to ensure the prestige of service in Russia's Armed Forces. A person in military uniform must be perceived as the guarantor of security, stability, and order in the country. Strengthening the Armed Forces is an important task for all branches of power. Its resolution will require people to rise above party bias and standpoint and unite all the wholesome forces in society. Nor can the components of the Federation remain aloof from this work.
6.2. Russia Within the System of International Relations
The strengthening of the state system is an essential condition if Russia is to occupy a proper place within the system of changed international relations. The generally recognized principles and norms of international law form the basis of our foreign policy course. Russia respects the sovereignty, territorial integrity, and independence of other states, including, naturally, those of our neighbors, and demands the same of them. Within the framework of these universal principles we will protect our legitimate interests and, if need be, will do so with firmness and toughness. Any self-respecting state does likewise, particularly when the protection of human rights and people's honor and dignity is involved. The consistent promotion of national interests through openness and cooperation and the guaranteeing of favorable conditions for internal development and the continuation of reforms constitute the main goal of the Russian state's foreign policy in 1994. By virtue of its potential and its geopolitical situation and influence Russia bears special responsibility for maintaining stability in the modern, multipolar world -- a complex and unpredictable world. Skillful work is needed in squaring competing interests and simultaneously promoting our own. Global confrontation has disappeared into the past. For the first time in many years Russia has no military adversaries. The priorities in the sphere of our country's national security are eliminating centers of military conflict on Russia's borders, strengthening the arrangements governing the nonproliferation of mass destruction weapons and sophisticated military technologies, and enhancing control over the international arms trade while watching over Russia's commercial interests in this sphere. The enactment of the START II Treaty and the Convention on the Prohibition of Chemical Weapons is on the agenda. The ratification of these documents by the Federal Assembly will mark a major stage in the implementation of Russia's new military doctrine, particularly as the Agreement between Russia, the United States, and Ukraine on the Complete Elimination of Strategic Nuclear Armaments on Ukrainian Territory has already been signed. Relations with the new independent states on Russia's borders and the all-around development of the CIS are of paramount importance in foreign policy in 1994. This is a sphere of special responsibility and special mutual interest between Russia and its neighbors. Our country is bound up with them more closely than is usual with neighbors -- that is a reality which must be taken into account if we are to maintain control over economic and social processes and guarantee an acceptable level of security. In the preceding period we managed to avoid two extremes -- imperial attempts to restore the Union state by force, with redrawing of the borders, or attempts by Russia to sidestep the problems of the former Union. Thanks to this no tragedy occurred on the nuclear superpower's territory. However, alongside the traditional opportunities which bind our contries by invisible threads in all spheres, new problems for Russia also lurk here. The centers of conflict close to its borders and the protracted crisis of the economy and indeed of the actual state system in a number of CIS countries do pose a serious threat to our country's security. Practice shows that no one, apart from Russia, is ready today to assume the burden of peacemaking in the area of the former USSR. Nevertheless, the use of Russian peacemaking forces in CIS operations has hitherto been regarded with wariness in a number of countries. It is essential that this be changed. In all CIS countries where Russia is involved in peacemaking operations it is doing so at the request and with the agreement of its neighbors, on the basis of international legal documents, and in full keeping with the sovereign rights of states as enshrined in the UN Charter. And that is why it does not need to ask the world community each time for authorization for a particular operation, although active UN and CSCE assistance in terms of personnel and finance would make peacemaking in the CIS more effective. The year 1994 must see the start of practical implementation of the Treaty on Collective Security and the provision of backup for the activity of the CIS Collective Security Council. There is an urgent need to set up a Standing Consultative Commission on Peacemaking Activity in order to develop jointly with our partners practical forms and proccedures for cooperation in this sphere. The Federal Assembly should soon examine the draft law on the participation of Russian military contingents in peacemaking operations, including operations within the CIS, CSCE, and UN frameworks. Concern for Russians who have found themselves outside the bounds of the Russian Federation should invariably be at the focus of our attention in all spheres of relations between the CIS and the Baltic states. Wherever they live, our compatriots should feel themselves to be citizens who enjoy full and equal rights. The interests of Russians in the CIS and the Baltic states will only be guaranteed if internationally recognized standards in the sphere of hunman rights and the rights of national minorities are observed throughout the territory of the former USSR. A start has been made here. On Russia's initiative the Declaration on International Commitments in the Sphere of Human Rights and Basic Freedoms has been adopted in the CIS and a Commission on Human Rights has been established. The next step is to secure the signing by Commonwealth states of the Convention on Guaranteeing the Rights of Persons Belonging to National, Ethnic, Lingustic, Cultural, and Religious Minorities and to submit the draft Commonwealth Convention on Human Rights to the Council of CIS Heads of States. Its adoption is a sine qua non for the start of practical work by the CIS Commission for Human Rights. The elaboration of a Program for the Protection of the Interests and for the Support of Ethnic Russians Living Outside the Bounds of the Russian Federation is drawing close to completion. It is essential that the sources of finance and the mechanism for coordination at government level be clearly defined. Russia is not entitled to reduce the level of its activity in the question of guaranteeing the rights of minorities in the CIS and Baltic states. Russian representatives should continue persistently to raise this problem before international institutions and seek their participation in the defense of their compatriots. It is also essential to develop such cooperation with the CSCE high commissioner for national minorities. The formation of the CIS has been accompanied by a host of problems new and old. Nevertheless, a trend toward economic reintegration and deeper political cooperation has already emerged. The organization of joint defense, the joint protection of borders, the creation of a single information area, and the comprehensive tackling of problems of citizenship and the protection of migrants' rights are questions which must figure at the center of our attention. The economy is a particularly important sphere of cooperation between Russia and the newly independent states. The new mechanisms of economic collaboration are developing with difficulty and at a far slower pace than life requires. There are many disputes over the problem of national currencies. The possibility of introducing a single monetary system with Russia is under study in a number of states. The most active proposals concerning the unification of monetary systems are currently coming from the government of the Republic of Belarus. The unification of monetary systems is a highly complex process. A different level of prices has already taken shape in the new independent states. Marked differences in the methods of state management of the economy also exist. But all these problems can ultimately be resolved. The main difficulty is how to structure the management of the monetary system -- the actual circulatory system of the economy -- while retaining two governments, two national banks, two autonomous budgets, and two parliaments with equal and sovereign rights. Another important question is the following: What powers should a state entering into a unified monetary system with Russia on the basis of the Russian ruble voluntarily delegate in so doing; and will it not subsequently call for the revocation of those powers with damage to the other party? Finally, it is necessary to determine what level of political integration will guarantee the viability of the re-created unified monetary system. It is clear that unification of the monetary systems could be very costly for our country. However, in the future unification could not just bring advantages to Belarus but could also cover Russia's costs and bring it its own rewards in conditions where new political approaches are employed. The president and government will seek these political solutions and approaches in close cooperation with the Federal Assembly. Life goes on, and, regardless of the monetary basis on which settlements among neighboring states are structured, they should work toward a single economic area with observance of the principle of the free movement of goods, services, capital, and manpower. Special attention should be paid here to meeting the immediate needs of ordinary people: guaranteeing the unrestricted transfer of pensions and wages and the unrestricted exchange of currency when traveling. All these painful problems demand a well-considered but prompt solution. The president of Russia has been elected chairman of the Council of CIS Heads of State for the next six months. This opportunity will be utilized to the full to make Russian initiatives and step up the work of forming the Economic Union -- the Commonwealth's common market. The following items figure on the immediate agenda: -- concluding an agreement creating a multilateral free trade zone and a customs union and an agreement forming a mechanism governing payment and settlement relations and a payments union; -- ensuring the conditions necessary for the creation of the production and trade infrastructure of a common market (transnational associations and corporations, industrial and financial associations, brokerage firms, insurance companies, and joint banking structures); -- preparing agreements providing for the solution of the most acute social problems, incuding those regulating the processes of migration, ensuring maximum freedom of movement of the population across the new borders, and providing joint measures for their social protection; -- creating an Interstate Cooperation Committee in which Commonwealth member-states would vest a number of regulatory and control functions, particularly as regards the fulfillment of agreements. In accordance with the decision of the Ashgabat meeting, Russia has proposed to the United Nations that the CIS be granted observer status as an international regional organization in the UN General Assembly. It is essential to speed up the preparation of proposals on permanent links between the CIS and the CSCE and other organizations. This will not only strengthen the Commonwealth's general authority in the world but will also enhance the quality of its collaboration with the world community in ensuring security and stability. Strengthening the United Nations and adopting a model for reforming the organization which would transform it into the most reliable and all-embracing institution of international cooperation are priorities for Russia's multilateral diplomacy. Partnership has become a key feature of Russia's relations with other states. The new nature of ties with the West opens up favorable opportunities for more effective realization of Russia's interests in the sphere of security, the economy, trade, and business. Russia has joined the main international economic organizations. The next step is the energetic establishment of proper collaboration with them. Since the G-7 meeting in Tokyo Russian diplomats and financiers have begun participating in conferences of its experts. A G-7 mission has been set up in Moscow. But an effective mechanism for consultation with the West, particularly as regards consideration of Russian interests, has not yet been set up. This is causing increasingly appreciable harm not just to Russia but to our partners too. We have the opportunity today to achieve a qualitatively new level of cooperation between Russia and the G-7. The basic guidelines of the strategy of Russia's cooperation with the G-7 -- in both the economic and foreign policy spheres -- could be confirmed at the meeting in Naples. This strategy should clearly delineate the long-term plan for turning the G-7 into a G-8, starting with the sphere of politics. The elimination of COCOM this spring will be the final step in removing restrictions on Russian foreign trade links. The new international arrangements for controlling the trade in military and dual-purpose technology demands the direct involvement of Russia and the United States as major arms producers. It is essential to make full use of the new opportunities for Russia-U.S. cooperation in the political, economic, scientific, technical, and other sectors. Participation in building a greater Europe that is peaceful, unified, and democratic is one of Russia's main tasks in the European area. The next meeting of CSCE members in Budapest will be a landmark event in that direction. Russia has proposed and will contine to uphold its concept of pan-European partnership. The CSCE is required to be the main instrument in the political building of the new Europe, while in the military-political sphere the North Atlantic Cooperation Council must play that role. It could coordinate the work of the regional organizations -- NATO, the WEU, and the CIS -- in maintaining peace and stability in the European area and ensuring greater openness in military activity and in the sphere of the conversion of the military-industrial complex. Other elements of the concept include granting the countries of Central Europe cross guarantees by Russia and its West European partners and expanding the North Atlantic Cooperation Council by including the neutral states of Europe. Russia advocates a qualitative and quantitative approach to the problems of European security. We respect the sovereign right of states to enter into any alliances and the sovereign right of alliances to admit them. But our neighbors in Europe should also know our opinion: We are opposed to an expansion of NATO without Russia. On the basis of this principle, Russia supports the Partnership for Peace program as a means of pan-European partnership that is open to all states of the greater Europe. The practical study of the parameters of the agreement with NATO must be speeded up so that we not only do not lag behind other countries but are out in front, especially in establishing cooperation in the military sphere. Major bilateral documents have been signed with the majority of West European states. The task now is to fill the accords with the real content of practical collaboration while continuing regular top-level dialogue. It is essential to complete the preparation of the agreement on partnership and cooperation with the European Union. Stepping up efforts to form new relations with the states of Central and East Europe is an important area of Russian military policy in 1994. Experience shows that common interests in carrying out democratic and market reforms and traditional links among our peoples outweigh old grievances. Russia intends to continue to play one of the leading roles in seeking a settlement of the crisis in former Yugsolavia. The main thing here is to mobilize the political efforts of the world community to end the war in Bosnia and, as a first step, to consolidate safe areas, including in Sarajevo. In any event it must be clear that the Bosnian conflict cannot be resolved by selective support or punishment for one side or other. All sides must be persistently encouraged toward peace. The United Nations and its Security Council have a special role here. Taking account of the FRY's fulfillment of the UN demands for a settlement of the Bosnia conflict, Russia will seek the dropping of the sanctions against that country. Russia's mutual relations with the world are determined by its unique Eurasian status. In 1994 it is necessary to make use of the new opportunities for the development of cooperation with leading Asian states -- India, China, and Japan -- and with new partners -- South Korea and the ASEAN and Persian Gulf countries. The current level of mutual relations with China and the transformation of that country into one of Russia's main trading partners makes it possible to set the task of moving our relations to the stage of constructive partnership on bilateral and international political issues. Japan holds a special place in Far East politics. Russia intends to consistently work toward the conclusion of a peace treaty with that country on the basis of respect for each other's positions, the finding of mutually acceptable formulas, and the resolution of all contradictions, including on the territorial problem. This must happen with due consideration of Russian national interests and complete compliance with its Constitution, along the path of respect for and compliance with international law and commitments under international treaties. An immediate task is to make maximum use of the untapped potential in our cooperation and interaction with Russia's reliable partner, India. A central dimension of Russian policy in the Asia-Pacific region is the involvement of areas of Siberia and the Far East in international cooperation in the region. The continuation of our country's active role as one of the organizers of the peace process in the Near East is intended to promote its long-term national interests and the strengthening of its international influence. Relations with such promising regions as Latin America and Africa must be raised to a qualitatively new level. In general a new and graphically expressed inner philosophy has emerged in foreign policy recently. Cooperation structures in the Baltic, Black Sea, and Euro-Arctic regions have been created with active Russian participation. The objective is to activate mechanisms affecting the specific socioeconomic problems of vast areas of Russia. Through these mechanisms, while consolidating a unified state policy, federal organs must help the components of the Federation to realize their foreign economic interests. The experience of the past two years has shown that any discord, be it departmental or regional, in foreign policy ultimately damages state interests and undermines Russia's positions in the world. The new Russian Constitution put everything in its place. The coordination of Russian foreign policy in the context of national security strategy must be strengthened. The Federal Assembly must examine the following questions: -- the ratification of around 60 international treaties; -- the adoption of laws ensuring the effective functioning of the Russian foreign policy mechanism (a law on RF international treaties, a law on diplomatic service, and consular rules); -- the adoption of laws supporting Russian foreign economic relations (a law on the continental shelf and economic zone, a law on exports of weapons and military equipment); -- the elaboration of new laws or amendment of existing laws in the humanitarian field taking account of Russia's international commitments. The dual citizenship part of the Law on Citizenship must be brought into line with the Constitution. The status of foreigners in Russia must also be brought into line with international standards by the adoption of a corresponding law for this. The sooner we adopt laws meeting present and future requirements, the greater will be the extent of the cooperation with foreign countries which we need so much and the more appreciable will be the return from the enormous opportunities offered by foreign policy.
Conclusion
An enormous country like Russia cannot be transformed rapidly and painlessly. We need a flexible long-term policy taking account of world experience, national characteristics and traditions, the developing situation, and changes in public interests and sentiments. Such a policy has nothing in common with either conservatism or reformist dogmatism. What is needed is not to strive to achieve the impossible, not to dissipate forces but, on the contrary, to concentrate resources and political will on the key areas in order to achieve a breakthrough to something better. When reforming, things must not be left absolutely to their own devices. The Message proposes how to organize this work. The primary task is to build cooperation. The time of political confrontation is past. The country needs consistent, creative, joint work. In December 1993 tens of millions of people with differing views voted for the Constitution in a nationwide vote. In Russia today it is impossible to find a stronger base for achieving accord. The Constitution provides an opportunity to start a real process of unifying all society's constructive forces and to channel the energy which has hitherto been expended on confrontation and fragmentation, into benefiting the country and its citizens and strengthening the Russian state. Weak authorities will wreck reform and be unable to impose even elementary order in the country. But renewed estrangement between the authorities and people and their everyday needs must not happen either. Results can only be achieved if Russian people's enormous intellectual and spiritual potential and desire to live better are channeled into the nationwide cause of building [obustroystvo] Russia. The transformation of social life on this kind of scale demands self-restraint of everybody. But the authorities are obliged to start with themselves. The legal basis of future constructive accord -- the Constitution -- must be supplemented by the formation of a stable political structure and a tradition of political tolerance in seeking common fundamental values and resolving nationwide tasks. Joint work by all organs of power to implement the program principles embedded in the Program will make it possible to lay the foundation of such traditions. Russia needs social accord. This is why the Message takes account of the constructive propopals of parliamentary factions and other political forces and social organizations and of the views of academics, experts, and practicians in seeking the optimum way to extricate the country from crisis, strengthen the Russian state, and improve Russians' lives. It is in our power to make 1994 the year of the building of creative cooperation, the year of the birth of new political traditions, the year of emergence from the crisis. It is our task, we have the chance, not to miss the opportunities which are opening up.