Excerpts from an Interview with the Chief Editors of the Newspapers Komsomolskaya Pravda, Izvestia, Moskovsky Komsomolets and Trud.Part 5 March 22,2001. Moscow. Интервью главным редакторам газет «Комсомольская правда», «Известия», «Московский комсомолец», «Труд» 22 марта 2001 года. Москва. A.POTAPOV: What is your assessment of the situation? Do you see any positive shifts in this sphere? VLADIMIR PUTIN: I think I do. Investments in basic assets are increasing. We introduced the 13% income rate and tax revenues have increased.We have liberalized the customs policy and drastically reduced import customs duties and the collection of customs revenues has improved.The results are obvious. So far, not much has been done, but there are early signs that the investment climate in Russia is improving. P.GUSEV: To pursue that topic further, the small and medium-sized business forms the backbone of the world economy. Here in Russia the small business has been strangled by bureaucrats and gangsters. VLADIMIR PUTIN: So you have put bureaucrats first?P.GUSEV: Yes, you have to obtain up to 200 approvals. And every piece of paper is at the mercy of the bureaucrat who may or may not sign it. How can the excessive power of bureaucracy and to some extent crime be stopped in Russia? VLADIMIR PUTIN: Only by passing corresponding laws. There is no other way. Unfortunately, not all the necessary bills have been sent to the Duma. Two were introduced recently. The Government has promised me that it will introduce the third law next week. It is to do with liberalization and cutting red tape in the sphere of licensing, with a change in the licensing procedure.As for small and medium-sized businesses, of course they are having the worst of it, because they are overwhelmed by all this red tape. I very much hope that the bills introduced in the Duma will be passed quickly and will come into effect.I dont want to advertise anyone, but it was Irina Khakamada who reminded me of it, and I appreciate it very much. I have to say that after our meeting with a group of deputies the Government stepped up its work in this area. I repeat, two bills have already been introduced and one will be introduced in the next few days.Some other measures to fight bureaucracy are contemplated. We all know these ridiculous situations when a police inspector comes and says: Bar up the windows because thieves may get in. The window is barred up and then a fire inspector comes and says: The bars need to be removed because if there is a fire they will obstruct the firemen.And this rigmarole goes on and on.There is no other way except passing laws that regulate this sphere.P.GUSEV: And what about criminals? Protection rackets exist in Russia both at the government level and at the day-to-day criminal level.VLADIMIR PUTIN: Protection rackets at the government level are called corruption, and at the day-to-day criminal level they are primitive rackets, in the proper sense of the word. There is no other remedy here except strengthening the law enforcement bodies and tighter control. There is no other option.V.SUNGORKIN: A year ago you took part in a phone-in session at the Komsomolskaya Pravda editorial office and you said that you were quite relaxed about the idea of creating a market for land, of land being sold and bought. Your answer to the question about land evoked great resonance. What is the outlook? When will a land market begin to emerge?VLADIMIR PUTIN: You know, de facto a lot of land is already privately owned. The lack of robust, clear and transparent rules in this sphere is a brake on economic development, on the development of industry and not only of agriculture. For now we have agreed with some parties and public movements which object to introducing the provision on the purchase and sale of agricultural land in the Land Code. I think as a first step that is not so bad. It would not be bad if a Land Code were adopted and legal sale of land were allowed. Even though it initially excludes agricultural land. But that already would solve many problems in the industrial sphere.

• published: 18 Dec 2008
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