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Putin urges State Council to focus on increasing people’s incomes

July 17, 2012, 17:15 UTC+3

He urged regional and municipal authorities to adopt the so-called “efficient contract”

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MOSCOW, July 17 (Itar-Tass) —— Russian President Vladimir Putin has set a task for Russia’s State Council to focus efforts of measures to increase the population’s incomes, to promote economic developments, and to remove administrative barriers.

According to the president, it is necessary to adjust regional development programs to bring them in line with his May decrees and to set clear time limits to implement their tasks. “Russia’s regional and municipal authorities are to solve a lot of social problems,” Putin said at e meeting of the State Council. He pointed to the fact that too much Russians have inferior incomes – a total of 18 million people, or 13 percent of the entire population, live below the poverty line. “We must do our best so that people have decent incomes,” Putin stressed.

He urged regional and municipal authorities to adopt the so-called “efficient contract,” and to explain to the people the advantages of the new remuneration system.

Another important task for the State Council is promoting economic development. “You know only too well that solution of social problems is directly linked with higher labour efficiency,” the president said. “We plan to double labour efficiency through the modernization of obsolete production facilities and setting up high technology ones, through attracting long-term investments to each constituent region.” The task, according to the president, can be accomplished only when regional authorities take active part.

Apart from that, it is necessary to create conditions to encourage small and medium-sized businesses. “So far we see no breakthrough here,” Putin said. “It is still difficult to set up a private business and work calmly, without unjustified interference from the authorities,” he said.

Putin cited expert data saying that two thirds of claims coming from businessmen were linked with difficulties at the regional or local levels. “They have to face administrative barriers, with office abuse of state servants, with violations of property rights,” he noted. In this context, he recalled his recent meeting with top executives from big metallurgical companies. “Even they are lamenting what can be said about small businesses,” he noted.

“It is high time to change our attitudes to the people who dare to take responsibility for their own living, to foster respect in society to these people and their work, to create the atmosphere of openness and fair competition in regions,” the president stressed.

According to the president, this is what the Agency of Strategic Initiatives has worked out unified rules of businesses support for. “Adopt these rules, use these standards, which are aimed at improving the investment climate, and it is a major goal of our economic policy,” Putin said. “It is up to the heads of regions and their personal efforts to promote positive changes in the area of entrepreneurship.”

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