В.Путин.Интервью главным редакторам. Part 3

Excerpts from an Interview with the Chief Editors of the Newspapers Komsomolskaya Pravda, Izvestia, Moskovsky Komsomolets and 3 March 22,2001. Moscow. Интервью главным редакторам газет «Комсомольская правда», «Известия», «Московский комсомолец», «Труд» 22 марта 2001 года. Москва. The road to hell is paved with good intentions. Once popular trust diminishes, progress stalls. So, we should balance the Governments social obligations to the population that I have mentioned with the economic goals that it sets for itself. V. SUNGORKIN: You have also inherited huge debts. We know the state in which the country was when you took over and that it had huge debts. In the mystical year 2003, when billions will have to be paid, will our economy be able to bear the burden? And going beyond economics and speaking about social obligations to the population the Government has to pay its people and pay off foreign debts how can you balance all these things? VLADIMIR PUTIN: As regards Russias debts, it is a serious problem. They are a burden on our economy, that is true. I have had occasion to speak about it publicly. I dont think we did the right thing when we assumed all the debts of the former Soviet Union. Why should we have done that? The money was borrowed by the whole Soviet Union and was spent on all the former Soviet Republics. Why should Russia carry the burden of responsibility and financial obligations on behalf of everyone? The reasoning behind it was the so-called zero option, whereby Russia assumed all the liabilities but also all the assets, including the so-called overseas assets, the real estate. I know only too well what kind of real estate we have abroad. M. KOZHOKIN: This was part of your job. VLADIMIR PUTIN: Yes, though not for long. The assets are incommensurate with our debts, with the debts of the former Soviet Union. Moreover, even though these assets are incommensurate with the debts, some of our partners refuse to recognize that decision and have sent out notes to the international community. These countries refuse to renew our title to the property. We are talking about Russian property abroad that has not been registered in Russias name. P. GUSEV: It is still considered to be Soviet property. VLADIMIR PUTIN: It is considered to be Soviet and disputed property. Meanwhile, we are already paying debts, we are paying billions, on behalf of everyone. So, I dont think it was a well thought-out and reasonable decision. And of course one has yet to see how that money has been spent. You know, there are various points of view regarding the use of credit to develop the domestic economy. In principle, it is a normal phenomenon of present-day economic life. Everybody readily takes credits, but the question is how that money is spent. If it is spent in an effective way to develop the economy, thats one thing. But if that doesnt happen, its another story altogether. When the main government institutions are in an inchoate state, one can hardly expect the money to be spent effectively, and not because somebody has stolen it or pilfered it. An inefficient state cannot make efficient use of credit resources and that is what happened here. The money has not been effectively spent. Its a fact. The money has been frittered away. Russia has assumed these obligations. If we are a civilized country then we must fulfil the obligations we have assumed. Russia has never renounced its obligations. But there can only be one approach. We have paid and intend to pay our debts proceeding from the premise that our main priority is to develop our own economy, and on that basis meet the governments social obligations to the population. Failing that, if the Russian economy goes downhill then the creditors wont get their money back. Both the creditors and we are equally interested in it. I have to say that the creditors are aware of this. By and large, so far we have managed to come to terms with them, and I think we will manage to do so again this time around.