OREANDA-NEWS. December 12, 2012. Vladimir Putin made annual Presidential Address to the Federal Assembly of the Russian Federation which outlines priority targets for national political and economic development.

The event took place in St George Hall of the Grand Kremlin Palace and was attended by the members of the Council of Federation, State Duma and Government, Presidents of the Constitutional, Supreme and Higher Arbitration Court, heads of the constitutional entities, chairpersons of regional legislative assemblies, heads of traditional faiths, public figures and executives of major media outlets.

The President highlighted several fundamental issues that are vitally important for Russia’s present and future.

Vladimir Putin stressed that the coming years will be decisive and perhaps even ground-breaking not only for Russia, but also for the entire world, which is entering an era of dramatic changes and possibly even shocks. Global development is becoming increasingly unequal, which may give rise to new economic, geopolitical and ethnic conflicts. Competition for resources is becoming tougher and a great deal will depend not only on the economic potential but also on the will of each nation, its internal energy and ability to move forward and change.

In the 21st century Russia must be a sovereign and influential nation amid a new balance of economic, civilisational and military forces. It must not only develop with confidence, but also preserve its national and spiritual identity, its sense of national unity. In this regard, the President noted the rise of civic engagement in the country. Vladimir Putin sees civil responsibility and patriotism as a consolidating force behind Russian politics.

Next, the head of state focused on addressing demographic issues, noting that demographic programmes adopted in the past decade have been effective. The country's population has not only stabilised but also began to grow. The President outlined the main directions of further growth, including the creation and implementation of regional demographic programmes. He believes families with three children should become the standard in Russia.

The President also touched on the issue of creating quality new jobs that will be the driving force behind growth of wages and wellbeing, the revival of engineering schools and professional training.

Speaking of the social sphere, which employs highly educated and qualified people, the so-called creative class of doctors, school and university teaching staff, scientists and culture professionals, Vladimir Putin recalled that the Presidential executive orders he signed in May stipulate wage increase for each category of employees in these fields, and instructed the heads of the federal and regional authorities to mobilise all available resources to achieve this goal.

It is also necessary, the President stressed, to strengthen the spiritual and moral fabric of society. Issues of secondary education, culture and youth policy take on special importance in this regard as they are responsible for shaping a balanced, moral and responsible citizen of Russia. It is essential to give every support to the institutions that have enshrined our traditional values and have historically proven their ability to pass them on from generation to generation.

The President spoke about the revival of national consciousness, the development of Russia as a multinational state and the inadmissibility of any manifestations of nationalism and chauvinism, which cause the greatest damage to the nation and the ethnic group whose interests the nationalists claim to be defending. Vladimir Putin made several proposals in the field of immigration policy, including on such issues as granting Russian citizenship and the fight against illegal immigration, as well as the development of distance education in Russian that would be available to everyone in the world.

Democracy is the only political choice for Russia, the President said. But Russian democracy is the power of the Russian people, with their own traditions of self-rule, and not the fulfilment of standards imposed on us from the outside. The framework of the state and society must not be affected, the continuity of national development must not be disrupted, national sovereignty and the rights and freedoms of our citizens must never be questioned. Moreover, democracy is the ability not only to choose the government, but also to constantly monitor the government and evaluate the results of its work.

In his Address, the President formulated a set of rules of fair political competition.

Russia is characterised by a tradition of a strong state, the President said, citing poor performance of state agencies and corruption as the main problems in this area. The President listed the key principles for a new model of public administration, including the new forms and methods of control, effective motivation of municipal officials and the introduction of certain restrictions concerning, in particular, foreign accounts, assets and real estate.

The President made a number of proposals with regard to the fight against corruption, including the development of public control mechanisms.

Talking about the economy, the President highlighted the importance of moving away from a commodity-based economic model and overcoming the economy’s dependence on financial and commodity markets in other countries, as well as some issues of jurisdiction and administrative proceedings. The President suggested that the Government and the Central Bank consider new mechanisms for financing the economy and further reducing inflation. The tax system must correspond to the needs of economic restructuring. It is essential to stimulate investment and development, shifting the tax burden towards consumption, including excise goods and expensive real estate, the President stressed.

The President also asked the Government to adopt a roadmap for enhancing competition as part of its efforts on the national entrepreneurial initiative and to begin its implementation next year.

Vladimir Putin also touched on the issues of food security, the environment, industry modernisation, development of science and technology, which requires the full use of the unprecedented funds allocated for defence procurement and modernisation of the defence industry.

We also need an investment map of Russia, the President said, providing investors with clear information on the regions where it is more profitable to work, to set up production facilities, and what forms of state support will be available to businesses in the near future.

In the international part of the Address, the President stressed the multipolar nature of the modern world, noting that Russia stands for the principles of coherent and collective efforts in addressing challenges facing the world today and can propose projects that will unite nations and regions. Vladimir Putin confirmed Russia’s intention to move towards closer integration with its immediate neighbours. He stressed that the Customs Union and the Common Economic Space of Russia, Belarus and Kazakhstan are already working effectively. Efforts have begun on the establishment of the Eurasian Economic Union, and this goal will be achieved.

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PRESIDENT OF RUSSIA VLADIMIR PUTIN: Citizens of Russia,

Federation Council members and State Duma deputies,

Recently, just a few months ago, in the articles written during the presidential election campaign and then in the executive orders signed in May 2012 I set out our position and our short and medium term plans. They covered all areas of our work and our lives: the economy, social sphere, domestic policy, international affairs and security issues. These documents describe our plans in detail, sometimes citing specific figures and deadlines. Some of them are already being implemented, for example raising teachers’ wages and some other tasks. We have put together the required regulatory framework with regard to all other items on our agenda. The work has begun. I want to assure all citizens of our country that it will continue; we will tackle all the tasks we have set without fail. The commission that was created specifically for this purpose will monitor these efforts.

Today, in my first Address to the Federal Assembly since being elected President, I will not speak in detail about those plans. It is too early to talk about any substantial adjustments but there are several points I would like to make in this regard.

I would like to highlight some of the key aspects of our progress, questions that are fundamental for Russia’s present and future not only in the medium but also in the long term, the most basic issues for each and every one of us.

A great deal has been achieved in the first twelve years of the new century. The stage of national reconstruction and strengthening, which is enormous in its importance, has been completed. Our task now is to build a rich and prosperous Russia. I would like all of us to understand clearly that the coming years will be decisive and perhaps even ground-breaking not only for us, but for the entire world as it enters a period of transition and possibly even shocks.

Global development is becoming increasingly unequal. This creates a fertile ground for new economic, geopolitical and ethnic conflicts. Competition for resources is becoming more intense. And I can assure you and want to emphasise that this competition will not be limited only to metals, oil and gas, but above all will focus on human resources and intelligence. Who will take the lead and who will remain outsiders and inevitably lose their independence will depend not only on the economic potential, but primarily on the will of each nation, on its inner energy which Lev Gumilev termed “passionarity”: the ability to move forward and to embrace change.

People in countries with developed economies and many countries with developing economies have become used to constant consumption growth, the expansion of life and cultural opportunities. That is good but it is possible to ensure the continuation of such growth in the modern world only through the introduction of a new technological order, and that is a great obstacle in many parts of the world. A country that is unable to secure its place among the developers of new innovative technologies is not just doomed to dependence: the share of the global "pie" which will benefit its businesses and citizens will be much smaller than that of the leaders. See how the revenue is distributed today between those who produce intellectual products and the consumers of the end product. The share is 15% and 75-80%.

In the 21st century amid a new balance of economic, civilisational and military forces Russia must be a sovereign and influential country. We should not just develop with confidence, but also preserve our national and spiritual identity, not lose our sense of national unity. We must be and remain Russia.

After 70 years of the Soviet period, Russian people went through a period when the importance of their private interests regained its relevance. That was a necessary and natural stage. However, working for one’s own interests has its limits. Prosperity cannot be achieved if chaos, disorder and insecurity reign beyond the walls of your house. You cannot live without having regard for others, without helping the weak, without extending your responsibility beyond the responsibility of your family or profession. Today more and more people in our country understand this. This has lead to the rise of civic engagement. People begin to relate their own lives and work with caring for others, with the aspirations of the entire nation and the interests of the state.

Today is December 12, the Constitution Day, and I would like to say a few words about the values that are rooted in the fundamental law of our country. The nation-wide responsibility for our country to the present and future generations is hailed by the Constitution as a fundamental principle of the Russian state. It is in civil responsibility and patriotism that I see the consolidating force behind our policy.

Being a patriot means not only to treat one’s national history with love and respect, although, of course, that is very important, but first and foremost to serve one’s country and society. As Solzhenitsyn said, patriotism is an organic, natural feeling. And as a society cannot survive without civil responsibility, so a country, especially a multinational one, cannot exist without a nationwide responsibility. These are remarkable words, they really bring it home.

A sense of responsibility for one’s country cannot be instilled with slogans or appeals; people must see that the authorities are transparent, accessible, work hard for the benefit of the country, city, region, village and every citizen, and respond to public opinion. The authorities must not be an isolated caste. This is the only way to build a strong moral foundation for creative work, an affirmation of order and freedom, morality and civic solidarity, justice and truth, and nationally oriented consciousness.

What will guarantee Russia's sovereignty in the 21st century? We often talk about this today. First, the country must have a sufficient amount of its own resources. This is not so that we could produce everything at home. Nobody lives like this anymore and I think that no one will ever live like this again. Russia must not only preserve its geopolitical relevance – it must multiply it, it must generate demand among our neighbours and partners. I emphasise that this is in our own interest. This applies to our economy, culture, science and education, as well as our diplomacy, particularly the ability to mobilise collective actions at the international level. Last but not least it applies to our military might that guarantees Russia’s security and independence.

Against the background of conflicting processes in the world, the interests of the nation require decisive action. We must look ahead and focus on the future.

Colleagues,

In the 20th century Russia went through two world wars and a civil war, through revolutions, and twice it experienced the collapse of a unified state. The whole way of life changed radically in our country several times. As a result, at the beginning of the 21st century, we were faced with a real demographic and moral catastrophe, with a demographic and moral crisis. If the nation is unable to preserve and reproduce itself, if it loses vital references and ideals, it does not need an external enemy because it will fall apart on its own.

I have talked about this many times but I want to emphasise it again. For Russia to be a sovereign and strong nation there must be more of us and we must be better in our morality, competences, work and creative endeavours. Today, the share of the young, active, working population aged 20 to 40 years in Russia is one of the highest among the developed countries. But in just 20 years, this age group could be reduced by half. If nothing is done, this trend will continue. Either right now we can open up a lifelong outlook for the young generation to secure good, interesting jobs, to create their own businesses, to buy housing, to build large and strong families and bring up many children, to be happy in their own country, or in just a few decades, Russia will become a poor, hopelessly aged (in the literal sense of the word) country, unable to preserve its independence and even its territory.

The demographic programmes adopted in the past decade have shown their effectiveness. The country's population has not only stabilised, but it has also begun to grow. In January-September 2012, it has grown by more than 200,000 people. For the first time in our country’s recent history, natural population growth has been posted for five months in a row: the birth rate has finally started to exceed the death rate.

In the past four years life expectancy in Russia has grown by almost 2.5 years (this is a good indicator) and has exceeded 70 years. However, the mortality rate remains very high, especially among middle-aged men. Together we must fight the frankly irresponsible attitude in society towards healthy living. Along with the development of public healthcare more attention should be paid to preventive care. Naturally, this does not mean that we should focus less attention on improving healthcare and increasing its accessibility – not at all. However, it is not enough to limit our efforts to medicine. The Government should introduce programmes for replacing jobs with hazardous conditions and improving road safety. Only smoking (we know this well as we have discussed this many times already), alcohol and drug addiction cause hundreds of thousands of premature deaths in our country every year.

A vitally important area is the development of physical fitness and sport, especially among young people. After all, the reason why we will be hosting the biggest international sports events is to encourage people to exercise, to raise the popularity and prestige of sports and fitness. But this task, the task of promoting sports and fitness, mass sports, cannot be achieved through international sporting events and even increasing the hours of physical education in schools and universities. We need new methods, a wide range of not only sports, but also fitness activities, especially for children, and I want to emphasise this: activities for young children. As we know, lifelong habits and interest are formed at this age, and we must work to encourage them.

I believe it is crucial to support the idea of creating associations of student sports clubs. Such an organisation would not only contribute to the development of university sports, but in a sense could give a social boost for talented, focused and active young people. I think it is important that such an organisation remains beyond politics and unites young people with a wide variety of political views.

We have adopted a programme providing family (maternity) capital at the birth of the second child. It is being implemented successfully, and will continue to be implemented until the end of 2016. We will fulfil all our obligations under this programme.

I want to stress once again: the programme was adopted until 2016, that is, every family that has a second child before 2016 will receive maternity capital and other benefits as required by law. This does not mean that I now want to encourage women to have a second child. Women know what they need to do and when. But it is our responsibility to inform people, just as we must decide what to do with this programme after 2016. Starting in 2013, we will begin paying additional benefits for the third and subsequent children in those regions where the demographic situation is worse than the national average.

We have 50 such regions in the Russian Federation, and most of them are concentrated in the Central, Northwestern, Volga and Far Eastern federal districts.

In addition, I would like to remind the heads of all Russian regions about the need to adopt and implement their own regional demographic programmes. Demographers say that the decision to have a second child is a potential decision to have a third. It is important that more families take this step. And, despite some experts’ doubts (with all due respect), I still believe that families with three children should become the standard in Russia. But a great deal must be done to make this a reality.

First of all, we must create a favourable environment for women so that they do not fear that the birth of the second and subsequent children will limit their career opportunities, their chances to find a good job and will force them to become housewives. Our efforts to eliminate waiting lists for kindergartens, introduce vocational training programmes for women who have children and provide support for flexible forms of employment will have a direct influence on each family’s decision to have the second and third child.

Special attention should be given to pre-school education, including support for the creation of private pre-schools. The Government has already eliminated many barriers in this area. Please finalise this work in the first six months of 2013, and I ask the regions to make active use of the opportunities provided. We must finally let the people work normally so that they can open small home-based kindergartens and all-day childcare, which means that parents will have a choice of day care without the waiting lists and all the anxiety.

I am confident that we have a unique opportunity in the next decade to fundamentally resolve another long-standing Russian problem: housing. I think this is the most important issue both for the Government and heads of the Russian regions. In the first stage of the Housing National Project we successfully promoted the development of mortgage loans. In the past two years, these loans have been growing by 40-50% a year. This is a good indicator, but frankly, as we know, mortgage loans mostly benefit people with above average incomes. Other people cannot afford them.

Therefore, now, at the new stage, we must attempt to resolve the housing problem for a broader range of people: young families, social sphere professionals, doctors, teachers, scientists and engineers, and take measures to increase the commissioning of affordable economy class housing, as well as greatly enhance the opportunities to rent housing. Some regions already have pilot projects that serve as case studies for various forms of rental market support. Such housing must be affordable to working people.

We also emphasise that in 2013-2014 we will fully meet our obligations to provide housing to military personnel and war veterans, and make significant progress in relocating people from unfit housing. In the next few years all people who were recognised on January 1, 2012 to be in need of better living conditions due to the poor state of their housing will move into their new flats.

We have set the goal to create and modernise 25 million jobs by 2020. This is a very ambitious and difficult challenge, but we can achieve it. We can help people find good, interesting employment. Quality jobs will become the driving force for the growth of wages and wellbeing. That is the most important aspect of our work. We need to revive engineering schools and professional training. Overall, we must pay more attention to working people.

I am instructing the Government Cabinet to develop and implement a national system for evaluating the quality of professional training in the next two years.

I also want to particularly mention the social sector. The specialists working there are known as public-sector employees. However, these people are highly educated and highly qualified, and in terms of their work, their cultural needs and social engagement, they are members of the so-called creative class. This creative class, or if we use the traditional term, the intelligentsia, is comprised, first and foremost, of doctors, teachers, university educators, workers in science and culture; these people are working in every region, in every village, in every city. At the same time, in terms of their incomes, they are still beyond the middle class level and are unable to afford proper vacations or comfortable living conditions, and must constantly seek additional sources of income.

For many years, the government underpaid these specialists, simply because it did not have the means, primarily because we needed to resolve other, more pressing problems such as increasing pensions, because the elderly were in an even worse situation, often living below the poverty line.

Now, we can radically change the situation in the social sectors. I laid out my suggestions in detail in the executive orders I mentioned, as well as my pre-election articles. The executive orders signed in May set the parameters for wage increases for every category of workers in these sectors. I am asking the heads of federal and regional government agencies to mobilise all their resources to implement this goal, and not just because these are our pre-election promises, although that is certainly very important – we must fulfil every promise we made. But even more importantly, if we fulfil this goal, we will be able to solve several key problems at once.

First of all, we will see a significant improvement in the quality of healthcare and education, because new, talented professionals will be drawn to these fields. And current workers in these areas will get the opportunity to focus on their main jobs, improve their training, and not take on additional side jobs and overtime. This is how we hope to eradicate such problems as day-to-day corruption and indifference to one’s responsibilities – everything that so greatly offends and hurts people today.

Second, the number of citizens who classify as members of the middle class will grow significantly – by a quarter. This will be particularly noticeable in the regions. We will support the revival of provincial intelligentsia, which was once Russia’s professional and moral backbone.

Third, professional communities of medical workers, educators, scientists and cultural workers will gain a new impetus for development. These communities must become the core of a competent and active civil society. It is fundamentally important for society to have the opportunity to objectively assess the state of science and the social sector.

I am asking the Government Cabinet, jointly with the Presidential Executive Office, to put together suggestions on creating a system for publicly monitoring the quality of healthcare, education, scientific results and the need for cultural institutions by April of next year. First and foremost, we must attract professionals to these lines of work, and to look at international best practices.

Let me stress that it would be incorrect to perceive the professional development programme as simply increasing everyone’s wages equally, without taking into account the qualifications and the actual input of each and every worker. Every organisation – medical, educational, scientific – must create its own programme for development and personnel renewal.