By Denis Dyomkin
KRASNOYARSK, Russia (Reuters) – Russian presidential candidate, First Deputy Prime Minister Dmitry Medvedev said freedom, private property and an independent judiciary would be the central platforms of his administration.
Speaking at an annual Krasnoyark Economic forum in Siberia, Medvedev, heavily favoured to win on March 2 to succeed his mentor Vladimir Putin, laid out his political priorities and called for tax reform to support economic growth.
“One of the key elements of our work in the next four years will be ensuring the independence of our legal system from the executive and legislative branches of power,” he said.
Medvedev, 42, spoke more of the development of social welfare projects than international affairs or the resurrection of Russian military power, themes Putin addresses regularly, and also of the need to fight endemic corruption.
“We must exclude law breaking from among the habits that our citizens have in their activities. To make it so that it no longer enriches some while demeaning others.
“What kind of equal opportunity and innovative thinking can there be if everybody knows that rights only belong to those with the sharpest teeth, and not those who obey the law,” he said.
Â
MAKING RUSSIA EFFICIENT
Medvedev said the government should review its tax system and cut the burden in some areas to ensure that the economy, which last year grew by 8.1 percent, can continue to grow.
“Our tax system must be competitive with tax systems of other countries. The state should collect as much tax as needed to ensure that society functions effectively and our national businesses do not flee abroad, the economy doesn’t fail.
He repeated Putin’s line that Value Added Tax should be cut and called for a reduction of export duties on energy exports to allow oil firms to invest in new facilities.
“In parallel, we should continue analysing whether to replace VAT with a sales tax,” he said.
Energy exporters will in turn need to pledge to switch to the rouble in their dealings to help it become one of the world’s top currencies.
“Today the global economy is going through uneasy times. People are reviewing the roles of key reserve currencies. And we must take advantage of it… The rouble will de facto become one of regional reserve currencies,” he said.
The banking system, which has experienced a liquidity crisis last year in step with global markets, can also count on state support, including inflows from the National Wealth Fund and the state pension fund.
But the role of state officials should simultaneously decrease when it comes to managing large government-owned corporates if Russia wants to remain competitive.
“I think there is no reason for the majority of state officials to sit on the boards of those firms. They should be replaced by truly independent directors, which the state would hire to implement its plans.
Â
