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Russia's New Government Faces Onerous Economic Tasks

Russian Prime Minister Mikhail Fradkov on Wednesday vowed to continue pushing forward reforms and improve competitiveness of the national economy, which seems to be a formidable mission for the newborn government. 

The new premier made the announcement a day after President Vladimir Putin presented a drastically reduced cabinet, which is expected to expedite economic and social reforms in his widely expected second four-year reign.

 

Fradkov stressed the need to get rid of Russia's heavy dependence on oil, while continue reaping the benefit from the profitable business.

 

Russia has seen its economy on the rise in recent years thanks mainly to the high prices in the international energy market. However, the economic revival can not mask the long-standing structural problems in the country's economic system.

 

Fradkov suggested focusing more on the development of high-tech industry, and the government is considering setting up a renovation mechanism to support the growth of the sector with preferential treatment in budget and taxation policies.

 

Eliminating poverty and improving people's living conditions, a goal set by Putin and reaffirmed by Fradkov, will be the new government's top priority. The incumbent president has also instructed the government to take up social reforms to solve long-term problems in the medical care, education, housing and pension systems.

 

Further regulating economic order and fighting against corruption to facilitate more legal and standard economic activities will be another pressing task challenging the government.

 

Fradkov has pledged to crack down on corruption and put government work under the supervision of the public. Fradkov's background as a police and tax chief is believed to help him fulfill the formidable mission.

 

Moreover, regulating taxation system and the exploitation and use of natural resources with legal instruments, as well as promoting the agricultural development, will also be high on the government's agenda.

 

Observers here noted that Putin has made big headway in maintaining social stability and stable economic growth over the past four years and seems determined to pursue a substantial reform in his next term.

 

The incumbent state leader has vowed last year to double Russia's gross domestic product in ten years, improve people's living standards and alleviate poverty, a formidable task that requires the new government to make breakthrough in tough reforms in the upcoming four years. 

 

(Xinhua News Agency March 11, 2004)

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Russian Premier-to-be: Trinity of Economist, Diplomat, Policeman
Putin Names Mikhail Fradkov as PM Candidate
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