To think anew, to work inventively

(Speech made by the President of Chuvash Republic Nikolai Fyodorov in the National Council (Parliament) on December 28, 2005)

Õèñåïëě äåïóòàòñåì, õàêëă åíòåøěìěðñåì!

Dear deputies, dear compatriots,

In some context breaking traditions, I have decided to make my speech in the National Council and to address the people of Chuvashia not at the beginning of the year, but literally prior to the new calendar year. Here the qualitatively new thing is in the fact that in a number of issues everyone - not only those sitting in this hall, but literally – every citizen living in the republic, irrespective of gender, status and other social distinctions, should enter the new year, realizing that this year should become a stage one in the life of Chuvashia. Because the forthcoming 2006 is the most significant year for the entire Russian state, it is the year of the reform of the local self-government system, by and large called to change consciousness of citizens in understanding their personal responsibility for everything that surrounds them. For the republic it is the year of the beginning of implementation of the second stage of the Strategy of socioeconomic development of Chuvashia till 2010, the year for implementing priority national projects declared by the President of Russia, the year that will demand concentration of all our forces and a joint effective work of all levels of the authority and each inhabitant of Chuvashia – who really love their land and want not verbally, but performing, let it be small, but practically to help the Native land. As in the year coming in four days there will be no day for shakedown, I have come to the conclusion that it is necessary to make the Speech today.

  

Results of the year:

qualitative dynamics of development was achieved

 

Traditionally, I shall dwell on some results of the expiring year.

2005 was noted by many remarkable events in the life of our republic. These were celebrating the 60th anniversary of the Great Victory, completion of a number of not only big, but historically important projects and facilities of socio-cultural, infrastructural and production purposes, as well as elections of heads of districts, towns, settlements and deputies of the qualitatively new local self-government bodies.

Estimating the socioeconomic indices of the expiring year (January-November), it is necessary to mark relatively high rates of growth of housing construction (123.3% against 105.9% in Russia), investments into fixed capital (111.1% against 110.2%), retail trade turnover (116.1% against 111.8%).

The rates of the growth of the volumes in industrial production were formed at the all-Russian level. The situation in the agrarian sector is being stabilized. The index of production in big and medium agricultural organisations was 106.6%; about 70% of agricultural enterprises operated profitably.

It is especially necessary to point out the parameters describing practical positive processes in the life of the inhabitants of Chuvashia: the growth of real disposable cash incomes of the population was 111% (in Russia – 109%); unemployment decreased by 7.8%. Inflation was less than in Russia (107% against 110%).

The city of Cheboxary, the town of Kanash, Morgaushskii, Cheboxarskii, and Yadrinskii districts have achieved the best economic results among towns and districts of the republic.

Lawmaking has a systemic and scheduled character. This year, the National Council of Chuvash Republic enacted more than 70 laws directed to development of business activity, solving high priority social issues and implementation of new principles of local self-government organisation.

Alexey Leonidovich Kudrin, Minister of finance of Russia, has characterized Chuvashia as the region having the most transparent system of financial administration and qualitative management of finances. And according to the research conducted by the influential “Kommersant.Vlast” magazine, Chuvashia ranked the fourth in the rating among 89 entities of Russia in the quality of life, having conceded only to St.-Petersburg, Moscow, and Tatarstan. First of all, experts estimated not the rate of wages, but such qualitative parameters as life expectancy, infant mortality, commissioning of per capita housing, construction of schools, wage arrears, expenditures of the population for housing and public utility services, and morbidity of the population. Besides, experts marked that these data reflect not only the current situation, but prediction of the nearest future as well.

In the Year of parks and gardens, we have together laid down a new tradition – in spring and in summer to have a day of Tree in the republic. More than two million trees and shrubberies have already been planted, more than 500 new parks, squares, avenues and memorable establishments have been laid out. The practices of the day of tree bear in themselves both practical, and philosophical meaning - in fact, it is the work on redevelopment, planting of greenery, protection of environment and ecology, as well as a holiday of unification, renewal and cleanup.

  

Strategy of development:

the first stage (2003-2005) has been completed

 

One cannot but be satisfied with the fact that the system of strategic planning laid in the basis of the activity of the Chuvash government from the very first days of its work yields tangible results.

Today, I can speak about the successful completion of the first stage of implementation of the major manifestos in organisation of our vital activity - the Strategy of socioeconomic development of Chuvash Republic till 2010 that had been approved by you, dear deputies, by the law as the Complex programme of socioeconomic development. The goals we had put before ourselves at this stage have been achieved.

The expected results of 2005 basically correspond to the aims of the Strategy. The parameters for growth of investments to fixed capital (2005 estimated to 2002 – 145.8%, according to the plan - 126%), the volumes of retail commodity turnover (143.5%, according to the plan – 126.5%) have been considerably overfulfilled, the rates of growth of the gross regional product (121%, according to the plan – 120.8%) have been maintained. The major result is steady increase of the standard of living of the population that corresponds to the aims of the Strategy. There is an advancing growth of cash incomes and wages of the population in comparison with price rise we planned to bring the size of wages in 2005 to 3,965 rubles, but, in fact, in January-November it made more than 5,000 rubles, thus average monthly wages in 2005 compared with 2002 increased 2.1 times (according to the Strategy - 1.6 times). The parameters of the first stage of the Strategy of the socioeconomic development of the republic have been not only fulfilled, but, mainly, overfulfilled, with the only exception that not only gives rise to concern, but demands additional measures. This is an essential underrun in the growth of agricultural production volumes put in the Strategy (2005 estimated to 2002 - 102.5%, according to the plan – 115.8%). Animal husbandry, as however in the entire country, being here the most topical problem. That is why the measures offered by the President of Russia to support animal husbandry hold out not only hope, but give our leaders, who are responsible for development of this branch, a chance to mend the situation.

It is important to note that conditions for implementation of highly effective and socially significant investment projects, forming growing-points, have been created in the republic. Mechanisms of the state support of priority investment projects have been worked out.

Nowadays, 133 investment projects totally worth about 30 billion rubles are being implemented in Chuvashia. The biggest of them are as follows: development of the territory of the Cheboxary river port, construction of a biotechnological enterprise in Shumerlinskii district, reconstruction of biological treatment facilities for the cities of Cheboxary and Novocheboxarsk, construction of housing for development of hypothecation using the credits provided by Raiffaisenbank. According to the Agreement signed between the “Russian railways” and “Promtractor” joint-stock companies and the Cabinet of Chuvashia capacities for manufacture of perspective models of freight cars are created in the Kanash car-repair factory.

There are a lot of examples of successful investments into perfection of production. Introduction of new technologies in the “Cheboxary aggregate works” Jsc allows to use pig-iron and steel practically of all grades, to increase the capacities of the factory in discharging hot metal by 40%, to reduce the cost price and to raise the quality of castings by 25%, to reduce considerably harmful discharges into the atmosphere of the city. Start of the new German forming line in the “Promtractor-Promlit” Jsc substantially increases the output of high-quality moulding, including railway one. At the “Khimprom” Jsc new technologies have allowed to optimize power consumption, to reduce the quantity of wastewater, to raise the safety of production, and to increase the export production by 10%. The investments to the “Cheboxary integrated poultry farm” Plc promoted introduction of goose- and duck-breeding technology, and in the long term - development of deep processing of poultry farming products and entrance to the all-Russian, European and Asian markets.

At the expense of budgetary finances in 2003-2005 we put into service more than 1.8 million m² of habitation, 17 comprehensive schools, the Presidential prenatal centre, three outpatient-polyclinic institutions for 550 visits a shift, almost 300 general practitioner (GP) offices, 150 model libraries, about 6,500 km of gas networks; we gasified about 100,000 houses/ flats. The first stages of the passenger mooring embankment in the Cheboxary river port, a home for the old and disabled people in the settlement of Atrat, an educational building of the Chuvash state pedagogical university, a sports stadium in the settlement of Kugesi, sewage purification works in Yadrin and Kozlovka, and new water pipelines have been constructed. We have completed the reconstruction of the Chuvash national museum, the State Russian drama theatre, railway stations in Cheboxary and Shumerlya, the building of the Republican centre of social adaptation. Hard surface highways with the total extent of 105 km and a number of other facilities were put into operation.

Realization of the republican target programme “Supply of the population of Chuvash Republic with qualitative drinking water in 2005-2008” has begun; to finance it this year, according to my decree, we planned to direct 500 million rubles from the budget, but we managed to attract more – 524.3 million rubles. During the first year more than 120 km of water supply systems were put into operation, a big volume of prospecting and design work was carried out.

In order to fulfill successfully the second stage of the Strategy, and not to reduce the rates of development and the investment attraction, I will underline one of the tasks important for business representatives of Chuvashia – without solving it reputable partners and banks will not deal with many of you.

To provide the future of our enterprises and further increase of the potential of the “non-primary” republic, it is vitally important to update their coming to the capital market in order to attract additional investments for development. We have already a positive example of the “Promtractor” Jsc that has sold this year its corporate bonds worth 1.5 billion rubles at the stock market. But the majority of companies is not ready yet to work in a new way, because they do not have an effective system of management, there is no transparency in their financial position, and they do not have efficient mechanisms for protecting interests of their shareholders, either. A low quality of corporate management influences extremely negatively on the investment opportunities of enterprises, i.e. on renewal of production facilities, output expansion, as well as their competitiveness.

We cannot force our businessmen and entrepreneurs introduce new principles of management and transparency standards. But, disseminating the experience gained by the most successful enterprises and fining up the mechanisms of interaction of state institutions and those of private business accordingly, we are obliged to create such an environment, where first of all the owners and the management of an enterprise should understand, and that it is, moreover, profitable to increase its capitalization; and that it should be profitable to strive for achievement of the world parameters in labour productivity, and observance of the rules of the best corporate practice. The work with special rating agencies, banks, functional financial advisors, and auditing companies may be effective here.

Both the state bodies responsible for proper estimation of all available assets of an organisation, and any effective owner wishing to build his/ her interaction with the state should be interested in transparent and adequate estimation – both the capital, and returns of this capital.

Egregious is the situation, when, for example, a sewing enterprise having its shops with the total area of 2,500 m² in the centre of Cheboxary is estimated at three million rubles. Or when a big plant in Novocheboxarsk, located on the territory of 50 hectares, estimates all its basic funds at 70 million rubles. The owners have underestimated their cost approximately ten times. Everybody knows the current markets prices of real estate that, by the way, also reflect the potential interest of foreign investors in the economy of the republic. One should take an advantage of such an interest today. The Cabinet must take these factors into account in interacting with private enterprises and the more so in rendering state support to them.

There should be clear rules of interaction between the authorities and business. If there is no transparency in the activity of an enterprise, the state should not help it. If there is no professional and, in a good sense, aggressive activity in the capital market, one cannot expect a corresponding support from us. If there is no honest and proper capitalization of assets, this means that your activity is harmful to both the enterprise, and the republic. A good and honest name of the enterprise, as that of a good man, is a huge capital in itself. It creates a significant part of the brand of the products turned out. Brand image and reputation are the most important and powerful tools in the competitive market campaign.

At the second stage of implementation of the Strategy, we must expect an active introduction of enterprises to the capital market, increase of investments into the economy accompanied by the increase of incomes of both the population, and the budgets. Chuvashia made the activity of the authorities and the system of public finances transparent, now it is up to the enterprises to do the same. They have to make their activity transparent. Our recommendations and even demands to enter the capital market by means of using the most up-to-date, accessible and cheap tools, including the issue of corporate securities and shares by public offering, are to be persevering enough, because the fact of such an emission itself will make an enterprise become transparent in accordance with the requirements of the financial market and those of legislation. And this will not only create qualitatively more favourable conditions for attraction of investments, including foreign ones – international banks, investment foundations and, of course, strategic investors, but it will also contribute to an adequate estimation of the republican potential for its most effective use and development.

 

National projects

 

One should pay attention to the fact that the directions and planned results, specified in the Strategy of socioeconomic development of Chuvashia till 2010, totally correspond to priority national projects declared by the President of Russia. Therefore, both the Prime Minister of the Russian Federation Mikhail Efimovich Fradkov, and the Plenipotentiary representative of the President of the Russian Federation in the Volga federal district Alexandr Vladimirovich Konovalov have noted that Chuvashia is in a favourable starting position. Many arrangements, stipulated by these priority national projects, have already been realized in Chuvashia for a few years.

For successful implementation of the national project in the sphere of education already during the previous years our republic created necessary organisational-legal conditions, a modern educational-material basis of schools, has accumulated experience of the innovational activity of educational institutions and that of the best managerial and educational practices. We began working at this project from the elaboration and implementation of the republican programme “New school” in 1996, because we were very much sure that only creation of the 21st century school might become the main accelerator of the long-term systemic transformations both in the economy, and the society. We need education not in general, but accessibility of the qualitative education for everybody. During these years we restructured 207 schools. 178 basic schools were fitted out with the most up-to-date equipment, and provided with highly qualified teachers. We bought 198 buses to take more than 9,000 children to these schools. The created socio-cultural-educational complexes have decreased a negative attitude of the population to restructuring and have become centres of spiritual culture of rural inhabitants.

There is an essential breakthrough in introduction of the effective mechanisms in using continuously developing educational resources of the Internet and organisation of on-line network interaction of all participants of the educational process. Nowadays, one modern computer falls within 28 schoolchildren, this index in Russia being twice less. 85% of schools have an access to the Internet, 54% of secondary schools have their own sites. The Republican centre for distance education has been established, corresponding resource centres function in the towns and districts.

Effective work with talented children is an important element of the system supporting the innovational programmes of schools and teachers. This year, more than 82,000 schoolchildren (51%) took part in various intellectual competitions of all levels. 10 children became winners and prize-winners of all-Russians Olympiads; Andrey Andreyev, a 10th grader of lyceum No.44, for the first time won a gold medal at the International natural science Olympiad.

More than 1,000 presidential scholarships have been established in the republic, there is also a system of presidential grants for encouragement of the innovational activity of young teachers, students, and the youth.

Additionally I signed a decree on support and development of the innovational, creative and spiritual potential of the educational system. This decree has introduced annual grants for 30 teachers worth 10,000 rubles each, and for 20 educational institutions – 200,000 rubles each.

Considerable work has been done for strengthening the material and technical basis of schools. There is a Republican union of education trustees, more than half of schools have trustee councils, and there are managing councils as well. But they should be created everywhere.

In 2006, it is necessary to complete the transfer of all educational institutions to financial self-dependence and to ensure implementation of the principle “money follows the students”. With this aim in mind, local self-government bodies should carry out the entire complex of the organisational work to complete transfer of schools, preschool institutions to the normative budget financing, having simultaneously solved the issues connected with the introduction of normative standards for maintenance cost, taking into account energy saving.

It is necessary to improve the system of labour remuneration of teachers directed to increase of the quality of education, but not to the number of classes held.

The issues of upbringing of the younger generation should be more important than all the rest. We must not only distribute mechanically additional payment for classroom management, but we should on principle reconsider the methodology of organisation of upbringing at school, laying stress on its transformation into the centre for development of spirituality and culture.

We have to establish a corresponding technological infrastructure, including the republican educational portal that will unite all levels of educational institutions and guarantee a free access of the participants of the educational process to all available Russian and international electronic educational resources.

* *            *

 

The measures undertaken during the last years on creation of specialised medical centres, on reorganisation of the medical service system in the countryside have taken tangible effects in public health of Chuvashia. After introduction of the family medicine service, the volumes of outpatient services have increased considerably, and qualitative medical service became as close as possible to the residence and work of the rural population.

Modern medical technologies in cardiosurgery, traumatology, neurosurgery and oncology have received further development. The second stage of the Presidential prenatal centre opened in 2005 and furnished with the latest world standard equipment completed the formation of the unified vertical system for rendering medical aid to mothers and infants. In Chuvashia, survivability of premature infants has increased 2.5 times, and birth of infants with inheritable pathology has decreased by almost third; there has been no case of maternal mortality, and the parameters of infant and prenatal mortality are the lowest in Russia.

One of the basic directions of the priority national project in the field of public health is the additional prophylactic medical examination of the working population. Here, we have gained our own experience, too. The health improving measures in four classes of diseases taken during the last three years have led to the decrease of the primary invalidism from cardio-vascular diseases by 19.3%, from hypertonic diseases – by 14.6%, respiratory diseases – twice, and the number of diabetes complications have decreased by 30%. The index of oncological diseases neglect has decreased 1.5 times. We should be proud of such tendencies in the healthcare of the population.

In 2006, the work of the emergency call service will be changed fundamentally, i.e. besides renewal of the vehicle fleet and medical equipment, this service will get the dispatcher control (that has no equivalent in Russia) based on the modern telecommunication technologies. This will allow to unite functionally the isolated departments of emergency call service.

About 60 million rubles are stipulated for these purposes within the framework of the World Bank project attracted by us based on the results of the all-Russian competitive tendering. Besides, now within the framework of the national project in the sphere of public health, we plan to get ambulances worth more than 37 million rubles.

The measures undertaken will allow us during two years to achieve the decrease of short-term and long-lasting disablement by 10%, as well as the increase of further life expectancy in Chuvashia from 66.1 till 66.5 years. And if we bear in mind the fact that the President of Russia Vladimir Vladimirovich Putin, who trusts us and lays his account on us, ordered yesterday in the Kremlin the Government of the Russian Federation to support the proposition of Chuvash Republic authorities in construction of the federal centre of high medical technologies in the capital of Chuvashia, for which all the regions had competed, our duty is to achieve more in the healthcare of the nation!

* *            *

Chuvashia steadily increases the volumes of housing construction, thus the annual rates of housing construction are more than 15%. In input of per capita housing our republic leaves behind all regions of the Volga federal district, including Tatarstan and Bashkortostan, as well as such rich regions as Moscow and Tyumen oblast.

Implementing its own mortgage housing credit lending programmes, Chuvash Republic has been remaining one of the leaders in the Russian Federation in this sphere already for some years. In 2004-2005, for development of housing construction for the first time credit resources of European banks have been attracted under our guarantees.

Currently, within the limits of this project two houses with the total floor area of 33,000 m² have been constructed in Novocheboxarsk. There is an aim not only to attract foreign investments into the development of housing construction, but to implement the pilot project in construction of inexpensive, quickly-raised habitation with small flats for social purpose housing.

This year, the President of Russia has set the task to increase by 2008 the volume of housing construction by 30%. We have earlier set the task on growth of housing construction volumes by 50%, it being almost one million square meters of habitation a year.

*             *            *

Support of agriculture and agricultural commodity producers has been and remains the basic content of our Strategy of development. Measures to be implemented in the nearest future for accelerated development of animal husbandry and for encouragement of the development of small forms of economic management have been determined in the priority national project “Development of agricultural complex”. The above-mentioned directions completely correspond not only to the specific tasks, but to powers of the newly formed local self-government bodies as well.

Our republic has prepared the investment projects on development of hog- and meat cattle breeding that stipulate the purchase of pedigreed animals and modern technologies, the formation of integrated structures for fodder production, as well as production and processing of raw materials; particular participants of the projects have been determined; and organisational work on finalising credits for their implementation is being conducted. Besides, reconstruction of dairy cattle and hog breeding farms will be conducted with the attraction of investment credits worth about 850 million rubles.

To develop small forms of management in agriculture, a complex of measures is stipulated on strengthening the material-technical and financial bases of its small-scale sector by means of creating consumer cooperatives on storage, sale and processing of products and raw materials, first of all, fruit and vegetables.

The duty of local authorities is to support peasants, to help them to adapt to market conditions. At the local level it is necessary to support considerably not only collective farms and farming enterprises, but also part-time farming facilities by organising procurement of agricultural production, assistance in obtaining of soft seasonal loans, and also for purchase of pedigreed animals, elite seeds and machinery.

Within the framework of implementation of the national project, subsidization of interest rates of attracted credits is guaranteed not only for agricultural enterprises. Crediting part-time farming facilities will begin already from January 1. Practically each peasant has an opportunity to attract credit resources up to 300,000 rubles, and the state will subsidize the interest rate to the extent of full refinancing pay. The duty of the heads of districts and settlements is to conduct a persevering explanatory and effective organisational work among the population. It is here that you have new and additional levers for development of the agroindustrial sector of Chuvashia. The state is ready to support the agricultural production with additional financial resources, but it is necessary to organise practical work at the local level – in this case the budget of your settlement will have an opportunity for the further development, too. One of the main tasks of local authorities is to develop small business, to support part-time farm facilities, and to assist people in development of their business.

I am speaking with full responsibility that I put the task not simply reaching the control parameters stipulated by the national projects, we are obliged to expand the frameworks of these projects and to achieve the results that will allow Chuvashia to be the leader in these spheres.

 

Effective local self-government

is the basis for further successful development

 

Implementation of the programme of public service reforming of Chuvash Republic will be finished in 2005. Today, one can confidently say that we have managed to form an efficient management system at the level of the republic. Though, certainly, it is necessary to continue perfection of the management system and to strengthen the republican authority with highly skilled staff, especially young specialists.

The work of the republic with the federal authority is at a very worthy level, too. The main parameter of good interaction of the federation entity and the federal centre is participation in federal programmes and investment projects. From this point of view, our republic is always among the popular and advanced ones. Because we are trusted in. We are trusted in conscientiousness, qualification; and they specially give accent to the quality of government in Chuvashia. Repeatedly the state bodies of Chuvash Republic in this part received a high estimation of the President, Prime Minister of the Russian Federation and federal ministers.         

There may be an effective management system only when all the levels of the authority - federal, republican and local - work harmoniously.

The local authority inseparable from the state, but independently obliged to the people and directly connected with the population, is the major support of sociopolitical stability in the society.

Organisation of the new system of local authority is not so much administrative, as public and economic necessity. Unfortunately, many of us have got used to dependency; there is an opinion in our consciousness that topical issues of a particular settlement are to be solved only in the district, in Cheboxary or in Moscow. The new system of organisation of local authority should break up this situation. In fact, the settlement level is created predicated on the assumption that it is one of the most effective tools for solving issues of the daily life of people. Therefore, a priority task of local authority is establishing constant and all-round practical interaction with citizens and formation their practical responsibility for everything that takes place on the territory of their settlement. Transfer of the majority of powers on maintenance and development of the public infrastructure to the local level should decrease expenditures; and independence of municipal budgets should stimulate the initiative at the local level and the socioeconomic development of territories. These tasks are the key ones also for realization of the second stage of the Strategy of socioeconomic development of the republic.

We have not postponed the introduction of the Federal law “On the general principles of organisation of the local self-government in the Russian Federation” consciously. Chuvash Republic has made a thoroughly calculated choice. The Chuvash proverb says: “Ïĕð êóíà þëíă ěç ïèí êóíà þëàòü”, i.e.”If you postpone something for one day, it will be left for three years”.

We have prepared the necessary normative basis for normal functioning of local self-government bodies in Chuvashia. The National Council and the Cabinet of Chuvash Republic have done a huge volume of legislative work. We have elected new local self-government bodies. Heads and representative bodies of all 317 municipal formations have been elected, including those elected in 291 newly formed rural and town settlements. 569 deputies of districts and town districts, 3,378 deputies of settlements have received mandates of trust. We believe that there is a force equalling to more than 4,000 persons – active and not indifferent to their native land - patriots of Chuvashia! They are an additional force for creation of effective work of constantly functioning deputy commissions at the level of settlements on redevelopment and keeping up the sanitation-and-epidemiologic and ecological norms, on struggle against home brew and drunkenness, i.e. against poisoning of people and against domestic crimes. Such commissions should work together with district militia officers, representatives of district administrations, tax, pollution control and other supervisory services.

We have also consciously decided to strengthen the role of heads of municipal formations, transferring to them powers of the head of administration. All municipalities of the republic have adopted this variant. Due to the amendments introduced into the Federal law, a head of rural settlement is simultaneously both the chairman of the Assembly of deputies and the head of the local administration. As a result, in Chuvash Republic there is a really responsible authority obliged to and, as a whole, capable to solve complex issues of local character.

Only few regions have chosen our way, when representative bodies and heads of all municipal bodies are elected at general elections by direct vote. The majority of entities of the Russian Federation, including almost all regions of the Volga federal district, have chosen a mixed model - deputies of all levels are elected directly and they elect heads from their staff.

In our republic, a nationally elected head of a municipal formation bears direct personal responsibility to the people who have voted for him/ her. Much, if not all, today depends on this central figure. By the way, speaking about the staff, i.e. about the respectable heads of settlements sitting in this hall. I have ordered the Cabinet to provide the total computerization and access to the Internet of 291 settlement administrations on terms of co-financing with district administrations within a month. If there is someone among you who is incompetent with computer and Internet, you are to learn during January, using the public access centres and model libraries created everywhere. Otherwise, you, as a head, will not be able to fulfill your official functions.

Exercising of some powers of local self-government bodies requires the presence of not only qualified and skilled specialists in administrations of settlements, as well as smoothly running mechanisms of interaction, therefore we have stipulated a transition period, during which the most complex functions of local self-government bodies, as an exceptional case, can be transferred from the settlement level to that of a municipal district.

You should all strive for such a situation, when the local self-government performs its duties mainly at the expense of its own income. We will demand this and use financial incentives for the heads who are able to provide this. Those days are gone, when heads of rural administrations, shifting responsibility, addressed district and republican authorities to solve the most urgent problems. Now, the heads of settlements and deputies of representative bodies should work jointly and strive for fulfilling the aims put. Not in vain, specific income sources are registered in the settlement budgets. One can say that the new law significantly “cuts” the administrative power and gives more powers to the self-organisation of the population.

Our republican law stipulates a very wide support of self-government bodies, including forming the Republican fund of financial support of municipal districts (town okrugs) for levelling the fiscal capacity of municipal formations, the Republican fund of financial support of settlements for levelling the fiscal capacity of settlements, the Republican fund of compensations – for financing the powers delegated by the state power bodies of Chuvash Republic, the Republican fund of co-financing of social expenditures – for encouragement of priority expenditures and support of reforms in the social sphere, and the Republican fund of municipal development – for support and encouragement of the public infrastructure development. But you yourselves are obliged to develop the tax potential of a settlement, and that of a district! And this is not only organisation of work on tax collection. The main thing here is an active reward of entrepreneurial initiative, development of producing units and services.

Small and medium business is a support of the national economy in all developed countries. And it can be seen at the local level what can and should be done in this direction. What does the evaluation show? The programmes of support of small business have been approved only in Kanashskii, Krasnoarmeiskii, Krasnochetaiskii, Morgaushskii, Tsivilskii, Yantikovskii districts, and in the city of Cheboxary, and in the town of Shumerlya. During 11 months of 2005, the total support for the sum of 9.3 million rubles from the republican budget in the form of interest rate subsidies on credits was obtained by 119 small business enterprises, among which 59% are businessmen of Cheboxary and Novocheboxarsk. Batyrevskii, Vurnarskii, and Yadrinskii districts have been developing their taxation base systemically over the course of the last years. But the remaining municipalities, according to statistics, are either having a rest, or waiting for manna? But there are examples that are very simple to implement and effective for the economy of any district. For example, in Vurnarskii district a half of the municipal order is implemented by small business enterprises, this allowing to build up the local budget revenues, because they pay almost all taxes to the district budget.

Small business provides a guaranteed receipt of taxes in budgets of all levels. By the way, during nine months of 2005, the total sum of the taxes obtained from small business enterprises increased by 37.7%. Besides, the parameters of small business development attest to its social role in the economy, in fact, it creates new workplaces. You should consider small business as an important factor for effective employment of the population, it being especially important in the countryside, for increase of legal and common culture, revival of national crafts, etc.

In spite of the fact that taxation, change and cancelling of local taxes and receipts of a settlement are powers of municipal bodies, I strongly recommend to refrain from ill-considered tax experiments. Introduction of new taxes and receipts at the local level demands a careful economic study.

The important mechanism of financial support of municipal formations from the republican budget will be the principle of co-financing. In practice it means that financing of municipal projects from the means of the republican budget will be mainly carried out on joint launchings. And the more is the municipal formation capable to inject in the project, the greater can be the financial participation of the republic. Such principle will allow avoiding a dependant position of municipal bodies and will serve as stimulus for development of economic activity and the initiative of local authorities. Once again I draw the attention of the self-government heads of all levels to the major principle of our interaction: the support volume from the republican budget for solving the problems of your territory will directly depend on the results of your socioeconomic management, i.e. on how you increase the volumes of the agricultural production, those of housing construction and entrepreneurship, on how your redevelopment is improving, etc.

The municipal property is an economic basis of local self-government, and all local self-government bodies should set teeth for its rational and effective use. It is necessary to solve faster the task of property complexes transfer from one level of local self-government to another one. Urgent and laborious work on taking inventory and registration of property rights is required for this purpose.

I wish to warn the heads of municipal formations against excessive striving to create municipal unitary enterprises and other similar organisations. Also I would like to warn against an excessive activity, calculated improperly on fallout, on sale of municipal property facilities. The perspective form of property management can be its transfer to a long-term rent, but only to attested and effective commercial operating organisations and individual businessmen. Such form will allow to provide management of municipal property on the basis of market principles, safety of municipal property facilities, as well as to avoid unwanted costs.

In rural settlements the main resource is land. Preservation of its fertility, competent and rational use of land is the guarantee of successful development. In the republic there are abandoned lands, and it is local self-government bodies that are obliged to create necessary conditions to cultivate them, bring income to a land user and the budget. Today, we ascertain an extremely inefficient use of land resources of agricultural designation. According to their monitoring, the spacing of arable land and pastures in the republic decreases annually by 500-1,000 hectares because of expansion of ravines, that is equivalent to closing-down of one large farm. Solving of this problem is a top-priority task of local self-government bodies.

Another major task of local self-government bodies is the formation of land cadastre on the basis of the cadastre of Chuvash Republic and registration of all necessary documents for the right of possession and disposal of municipal lands.

To regulate the system of granting plots for construction, according to the Town-planning code, the administrations of municipal districts, city okrugs, and settlements should form general and situational layouts, develop rules, techniques, cost indices, as well as inform widely builders, and all population about it.

Providing transparency in fulfilling the local budget is problem number one. Each inhabitant of a municipal formation should know on what purpose people’s money is spent. Discussion of the most important documents at public hearings with the participation of all interested persons, where everyone has the right to express his/ her opinion, should be a norm. Fiscal discipline stipulates not only discussion of projects of the budget and reports on its execution at public hearings, but also quarterly publication of the execution course of the local budget.

So, nowadays, the new law gives an impetus to independent activity of the people living in settlements. But in order to let an initiative appear nevertheless underneath, at the same settlement level, the citizens should have at least an idea about the fact that it is necessary to live within one’s means, as in the family, and to strive for earning, if there is need to solve a common problem.

The federal law establishes a wide list of issues attributed to the competence of local self-government bodies of settlements. And it is comprehensive not only in financial, but also in the organisational part.

I would like to dwell on some of the issues in greater detail. We, together with the population, will strictly demand effective solving of these issues from each head of local self-government.

 

Redevelopment of settlements is one of the most important missions of local self-government in particular. After all, cleanness and order mostly depend not on money, but on the strength of genuine love for the native land, on respect of own human dignity. It is necessary to create such conditions that would provide well-management both around a separate house, and street, as well as resting places of the population, and territories of enterprises. Each inhabitant should be proud of his/ her village or town.

When in 2001 the Decree “On the further development of the public infrastructure in Chuvash Republic” was approved, the appearance of many localities changed noticeably. Suffice it to say, our capital Cheboxary and the town of Kanash became winners of the All-Russia competition “the most developed city of Russia”. Minister of economic development of the Russian Federation German Gref during his recent visit to Chuvashia has put Cheboxary on redevelopment alongside Moscow and St.-Petersburg. This is not only recognition of a federal public person, but that of the man who has seen and knows much. But we have a more significant objective - to make the entire territory of Chuvash Republic an example for Russia.

It is time to put things in order in streets of small towns, settlements, and villages. There are almost everywhere a lot of illegally constructed garages and economic entities, a lot of illegal storage of construction materials on the lands of general use both in towns, and in villages. Narrowing traffic ways and operation of heavy tractors in impassability transform streets of localities into an untrafficable obstacle. Where the authority works, and the citizens are interested in preservation of streets, traffic is temporarily limited. Alas, these are only individual facts, but the citizens mainly think that “an uncle from the district” will come and rake out the rubbish they had thrown out. Therefore, the heads of newly formed rural and city settlements have a top-priority task - to clean the streets of settlements from dirt and rubbish, actively involving all inhabitants in both subbotniks, and public works stipulated by the federal law.

There is no need to go far to gain such an experience: competition is annually held in Morgaushskii district on the best locality and a model individual facility. Headmen of localities mobilize people for cleaning the territory, streets, accomplishment of cemeteries, repair of ponds, etc. The results of the competition are summarised by the district commission. Three best villages and one best private house from every 19 rural administrations are defined. The winners get money. A part of the prize-winning sum is allocated, based on the decision of the Assembly of deputies, to the head of the winning locality. The issue on how many days a year each adult should work on redevelopment of the village is solved on gatherings of citizens. Why is this not done in all districts and towns? Not in vain there is a proverb: “Õàëăõïà âĕðñåí, õàïõà óçìà ïóëàòü” – “If you blow together, you may open the gate”.

Driving through many localities of Chuvashia one notices, how much prettier Cheboxary, Novocheboxarsk, Kanash, Shumerlya, Vurnary, Yadrin, Shemursha, Yalchiki and many other places have become recently. However, visiting Alikovskii district, there is a feeling that the time has stopped here. Settlements are not redeveloped. In The year of parks and gardens practically nothing has been done! In this respect the village of Alikovo is the most untended district centre of Chuvashia.

Tsivilskii district is one of the municipal formations having a significant tax potential due to the developed transport infrastructure, close position to the capital of the republic, and presence of steadily functioning enterprises. On its territory there are two research institutes engaged in serious elaboration in the field of agricultural development, but both agriculture, and economy lag behind. Why is it so?

Tsivilsk is located in a beautiful place on the crossroads of federal highways, where thousands of people pass through daily, and what do they see? Dirt, rubbish, and ramshackled fences. What kind of investor will choose to invest in such a district? At the same time both the head of the district, and that of the town of Tsivilsk are doing quite decently, regularly receiving salary and premiums from the budget, but performing their direct official duties very poorly.

But the head of Shemurshinskii district has organised the work of institutions, enterprises, organisations and all inhabitants of the district centre in such a way that weekly subbotniks on cleaning the territory became a standard practice in the life of Shemursha inhabitants. As a result, during the last years the district centre continues smartening up, and I can term it the cleanest district centre of Chuvashia. The experience gained by the territorial public self-management bodies of the city of Novocheboxarsk and street committees of the town of Kanash are noteworthy.

In Chuvashia, one always estimated business qualities of a person on the condition of his personal household - if the house is sightly, there is a kempt garden, a clean house territory, it means that a respectworthy owner lives here and that one can deal with him. The same rule is in force in relation of any settlement. A reference point here is Chuvashia itself - being a grant region of Russia, due to many initiatives, as well as to active participation in implementing pilot projects, we have achieved a high credit rating.

International financial institutions, without participation of the federal centre, are ready to lend money to us, can secure, and act as guarantors. Yes, we are not rich for the moment, but we are well-managed, clean, fair, transparent, therefore we are attractive for development of business and getting investments – this is one of the most important rules of success for all of us. Therefore, now it is necessary for both heads and deputies, and everyone to transfer this valuable experience gained by the republic to the level of all municipal formations.

 

The most complex for today remains the problem of roads inside localities. Now, maintenance and construction of roads and engineering constructions in localities come within the terms of locality reference. Here there are problems of maintenance of the traffic ways of streets and roads leading to the federal, republican and district highways, as well as those connecting the residential streets with industrial facilities, and recreational places. Thus, at the first stage it is unessential to make asphalt covering, it is quite comprehensible to use pitch-grouted macadam, and sometimes it is enough to lift a road cloth. And self-government bodies should strictly control movement of vehicles along traffic ways of streets and inner-settlement roads depending on weather and the season.

Certainly, without the assistance rendered by the district or the republic, we cannot cardinally solve the problem of roads, therefore we are ready to unite our efforts and, first of all, with those heads of settlements who are able to organise the inhabitants for it and to define their share of financial participation. It is possible both at the level of districts, by corresponding agreements, and at the level of the republic, by directing the investments being defined at competitions with the conditions of co-financing and participation of the inhabitants of settlements.

In the construction branch we have set an ambitious objective for ourselves - to step up housing construction and to bring the volumes of habitation commissioning to one million square meters a year. Without an active participation of local self-government bodies it will be difficult to achieve the desirable result. They are obliged to create conditions for housing construction, providing development of general plans for territory development, allotment of land plots, development of the municipal infrastructure; they should involve reliable investors and builders, stimulate purchase of flats by means of mortgage housing loans, as well as construction of individual houses.

The law assigns to local self-government bodies of towns and settlements the duty both on the organisation of record maintenance, and on providing the needy citizens, living in towns and settlements and requiring improvement of housing, with premises. Here it is necessary for us to think over the organisation, including financing of the construction of houses of the municipal housing stock, flats that should be provided under the contracts of social hiring. These problems are not simple, we need a lot of means, and the success of a particular city, district, and settlement will depend to a great extent on the activity of local heads and deputies on the development of the territory. That includes creation of investment appeal, and presence of transparent procedures on official registration of the documents for granting land plots and licenses for construction, and the control over activity of builders and contractors, and a large-scale work on raising public awareness.

Under the new federal law, the quality of rendering of the entire complex of housing-and-municipal services (from heating services to household waste disposal and organisation of street illumination) is now a parameter of adequacy or inadequacy of local authorities.

The branch of housing-and-municipal services experiences main recesses, and it is the local self-government bodies, as a level of public authority, that are responsible for the quality of granting these services, and for creation of comfortable residing for inhabitants.

In 2006, our country passes to new forms of management in granting of services in blocks of flats by managing companies, and the competent and economically feasible approach to solving this problem is the task of local self-government bodies. Here it is necessary to encourage the enterprise initiative, to transform the enterprises of the housing-and-municipal complex into joint-stock companies, having divided the functions of the customer and those of the contractor of granting services, and to create competitive conditions for granting these services.

I’d like to draw attention to the necessity of a measured and competent approach to formation of the tariffs for housing-and-municipal services in municipal formations. It is necessary to find in each particular case a balance between problems in prevention of collapse of the enterprises of housing-and-municipal services and financial opportunities of town and settlement inhabitants. This issue is vital for any territory and it does not endure populism and irresponsibility.

 

There are a lot of serious problems in operation of municipal engineering networks and housing fund in settlements, where it is economically unprofitable to create an adequate enterprise of housing-and-municipal services. In this case it is necessary to choose the way of cooperation with several settlements.

We have started realization of the republican target programme on providing the inhabitants of Chuvashia with qualitative drinking water, having allocated significant means from the budget - more than 500 million rubles this year and more than one billion in the next. We have initiatively put this task for the republican level – to bring qualitative water to consumers at the expense of the republican budget, and the water supply systems should receive a zealous owner in the name of municipality.

Organisation of illumination of streets is the power of local self-government bodies directly specified in the law. There are norms of illumination established by construction and sanitary rules specified legally. Please, keep in mind that it is a more important and fundamental issue, than many people used to think of. Modern street illumination of settlements is important not only from the point of view of convenience for the inhabitants of settlements and their safety, but it also creates good mood. I am not speaking about the influence of celebratory illumination that can and must appear in all localities. You are obliged to know that there, where illumination of facades of public buildings and offices is effectively used, and trees are decorated with garlands, it is not only pleasant to walk. This improves mood of the people, and this affects positively the criminogenic situation, labour productivity. And it also creates an investment appeal of a town, a district and a settlement that is, in turn, a basis for development of self-government.

Organisation of transport service for the population in towns, districts and settlements, creation of conditions for providing the inhabitants with services of communication, public catering, trade and consumer services, as well as organisation of ritual services refer to the issues of local character.

To solve them, the local self-government bodies should aspire to create healthy competition and provide maximum quality of the services rendered at their minimal cost; it is necessary to support enterprise initiative in this sphere, as not only issues of the public infrastructure of settlements are solved here, but additional incomes of the local budget are formed, too.

I would put the maintenance of urban and rural cemeteries to the separate moral height. You are not much of a catch, dear heads of towns and settlements, deputies, if you are not capable to keep them clean and well-tended. I am asking the Cabinet to take this issue under control as one of the essential criteria to estimate the work of the head and deputies at allocation of investments to towns and settlements from the republican budget.

 

Development of physical culture and sports, organisation of leisure and public recreation of the inhabitants of localities is the task to be solved effectively at the municipal level. This work demands popularisation of a healthy way of living. Our aim is an active involvement of citizens, especially the youth, in mass physical culture and sports. It is necessary to develop sports traditions, but there are also new examples – one can recollect the mass scale of the “Cross-country of nations” and “Ski track of Russia” running held in Chuvashia in 2004 and 2005. Tens of thousands of non-professionals took part in these competitions.

The cultural-mass work should revive the practice of universally held rural “Akatuis” - Days of villages. Not only inhabitants of settlements, but also guests and natives of these districts take part in these holidays. Agricultural workers, family dynasties are honoured; the best people in various fields are defined at these holidays. Such Days should become a symbol of unity of inhabitants, an action directed to the development of historical traditions and patriotic education of the youth. A direct duty of local self-government bodies is an active organisation of such festivals.

 

Favourable living conditions of citizens stipulate a duty of local self-government bodies on protection of the population against extreme situations of natural and man-made character. Such situations can appear at any moment. Thus, because of negligence from the part of republican and local power bodies, irresponsibility of the heads of agricultural enterprises, and official failure of the federal supervisory and environmental bodies, we have an inadmissible situation with the maintenance of about 900 animal burials located on the territory of the districts. Storage places of about hundred of tonnes of pesticides inapplicable and prohibited to be used long ago, as well as an unknown number of agricultural chemicals are in the same bad condition. The Cabinet should, without delay, gather all official decision-makers and take a complex of measures to prevent an emergency.

Under the federal law, powers on providing primary measures of fire safety and realization of measures in civil defense have been transferred to the level of settlements. Until “red cock pecks”, nobody thinks of the necessity to observe fire safety. Therefore, here much depends on the head of a settlement. Will he manage to convince the population to observe the rules, to be insured, to be organised and operate quickly in case of emergency, to provide arrival of firemen and fire-fighting vehicles? Once again I draw the attention to the fact that, under the law, it is the head of a municipal formation who is officially responsible for solving this problem.

Providing safe conditions for citizens is a many-sided problem demanding injection of a certain amount of money from the local budget. The way how to solve this problem is also in a more dynamic activity of the population – by means of participation in voluntary people’s guards, making decisions on attraction of means from the self-taxation of citizens, eradication of an indifferent attitude to violators of norms and rules, use of opportunities in cooperation of efforts of several settlements and even districts under agreements. “Òûòìà ïěëñåí ñàõàë òà ïåðåêåòëě ïóëàòü”, the Chuvash say. - “If one can use properly, even a small quantity will last for a long time”. This proverb is for us. But another one is also timely - “No pains, no gains”. That is why in those settlements where there is no creativeness, no activity, and no initiative - there will not be due results, either.

*             *            *

 

Finishing the talk about the mission assigned to the heads sitting in this hall, and a big army of deputies elected, I would like to add the following. I believe that it is not needless to stress that the administrative reform and the reform of the local self-government in Russia, besides stricter distribution of the responsibility between all levels of power in the country, introduce new concepts in our state. On the one hand, these concepts are of economic character, but, on the other hand, they must change the political attitudes to the power as such. Everything, I have been talking about, is, in essence, a big work classified as rendering services to the population in the modern federal legislation already in accordance with international standards. And the quality of services rendered becomes the main thing in the work of not only federal and regional bodies, but in the work of a municipal government as well.

As Russia is entering the world economy, is developing market institutes, is strengthening its economic and political competition, the entire system of management is changing principally. I have already told you how our economic entities should become transparent under new conditions, in order to develop. But today there is already a new notion – “municipal management”. Quality management based on the ISO-9000 standards, the so-called benchmarking, is one of new technologies of modern management that is successfully applied at the municipal level.

In 1991, Great Britain published the Charter of a citizen that includes a lot of factors and indices of the quality of fulfilling their functions by local power bodies in servicing clients, i.e. citizens. When this charter is used in the context of the new model of the regional and municipal management, it gives a basis for construction of corresponding service standards, as well as for estimation of the activity carried out by the local power bodies. That is why the municipal services of developed countries have been drastically changed. The process of perception of new management technologies takes place there; their officers are busy with reduction of expenses, increase of efficiency; they have started to take into account environmental changes and increasing demands of consumers for the services of municipal structures.

In Russia, this tendency is gaining momentum, because the system of state and municipal government is transformed from the command-and-control methods into the economic and socio-psychological ones. And any public estimations, ratings, and public tenders make the process of the regional and municipal government more transparent and more effective. This, on the one hand, may serve as an obstacle against corruption and bureaucracy and, on the other hand, can create an investment-appeal image of the territory of a municipal formation.

 

Dear deputies, dear compatriots,

Many people in our country used to blame in their troubles and misfortunes anybody, but not themselves. But the objective reality, and the life itself prove that the result we have is the result of our own ideas, acts, our actions and inaction, it is the result of observance and non-observance of the main panhuman precepts.

We mark with bitterness that our society today is sick of the phenomena that our people did not have earlier. These are children abandoned by their dishonest parents, homeless children, children-orphans who did not find a place by their natives and relatives. At all times, in the most difficult time kinsfolk, relatives or even non-relatives, as we used to say earlier – the entire community, took on responsibilities for support and education of disadvantaged children. But what do we do today to stop this misfortune, this pain? I am not speaking about the state in this case; I am speaking about the society, about all citizens – about their indifference or participation in someone else’s fate, so much the fate of a small man. Thank God, we have positive examples, too. The Ivanovs - Valery Valentinovich and Liliya Stepanovna from Tsivilsk, having three children, have adopted three more children. Such a family is an example of mercy and kindness, high spirituality, an example of genuine civil service.

Despite of the fact that this topic is not included in the articles of the law on local self-government, I am convinced that, to a large extent, spirituality and civic consciousness, and the fundamentals of the civil society are formed in those small public entities and territories, a kind of mini-civilisations, - new institutes called self-governed settlements. Spirituality is the basis for accumulation of strength and power of people, i.e. the basis for its worthy future. Implementation of our historic plans and projects requires not only intensive working, but very deep creative and non-trivial decisions. In order to let the people understand and adopt them, so that they bring success to the entire republic, we need a fundamental, strong basis, this being the best traditions and abutments of people, its internal self-organising and invincible moral and spiritual force. That is why, after long and painful doubts over the destiny of people of Chuvashia, I have decided to declare the new 2006 as the Year of Spiritual enlightenment, and I signed a corresponding decree today.

I do hope that the topic, raised by us in the consciousness of the inhabitants of the republic in the Year of the youth and healthy way of living, the topic of preservation and development of culture, will be more actively developed in a number of state, municipal and public projects in the following year. I am speaking about Culture written with a capital letter, about Culture in the widest sense – culture of behaviour and speech, culture of the quality of commodities produced by our business, about culture of everyday life and culture of meals, about culture of preservation of health and environment, about political culture and culture of mentality, on what everything initially depends in the life of a human being!

It is impossible to achieve advancement materially without a significant advancement in transformation of mentality, without preservation and growth of spirituality in people, without their spiritual enlightenment! Such a conclusion was made by the best people of our planet, denouncing even collapse of modern civilisation, if the humanity does not recollect itself. Maybe, an individual man of genius develops progress, but it is quite explicit that civilisation is preserved only by collective efforts. Evaluating the socioeconomic development of Russia, the majority of researchers call the technocratic approach pardonably as the main reason of failures and mistakes. A mechanic transfer of even the best norms and practices of developed democratic countries into the sociocultural realities of Russia did not have the same effect as in the West. And, moreover, in the opinion of experts, this ill-being was caused not so much by economic, as moral ruin. The distemper touched the main thing – the spirit of the Russian people. The demolition of the spiritual basis of the society and the years-long uncertainty turned into the tool of destruction.

But I would like to stress that even a high level of living under the conditions of the lack of spirituality does not bring happiness, what is more, it puts both a human being, and civilisation to the brink of catastrophe. The same West shows us: where the Soul and the Morals are forgotten in the chase for mercantile material well-being, there is an end of stability and material prosperity.

Chuvashia is both historically, and geographically, and ethnically located at the junction of civilisations. Improving the level of the material life of our citizens, we must realize that, after all, the main thing and the basis of our happiness and harmony is spirituality. Only the strength of our spirituality will preserve our ethnos, our people, protect its natural cradle, provide sound offsprings for the future. I would like to remind all who gathered here that the word “respublika” translated from the Latin language means “public affair”. And, as my people say, “Ìèð õěcěð ïóëìàñòü – The society cannot be sterile. If all of us who live in our small republic, feel personal and collective responsibility for everything that takes place here (by the way, development of a genuine local self-government is essentially directed to achievement of such a result), then we do not only have hope, but a very good chance to guarantee both for ourselves, and our children and grandchildren a worthy future.

Thank you for your attention.

(Ñ) Translated from Russian by Vladimir Shashkov, Luiza Mikhailova and Inna Dolgushina on January 16, 2006.