MOSCOW. (RIA Novosti political commentator Yuri Filippov.) -- The situation in Russia is absolutely stable. This statement, made by President Vladimir Putin at the beginning of his televised phone-in question-answer session, is perhaps the most succinct assessment of current Russia.
The country's economic growth, which in the last five years averaged about 7% annually, has removed many of the problems Mr. Putin's administration faced in 2000, when he first came to power. Russia has dramatically improved its international position and reputation after paying off part of its foreign debt. In 1999, the debt equaled $150 bln, which was 6-7 times higher than the national budget's income or 100% of the annual gross domestic product. By now it has been reduced to a mere 16% of GDP, which is one of the best results in Europe, the President pointed out with satisfaction.
Compared to 2000, the population's average living standards have improved significantly, which contributed greatly to domestic political stability. Growth of real incomes of the population is one of the key economic figures the President keeps track of. This year it is projected at 8.5%-10%, excluding inflation, he said. The result is almost two times higher than last year, when real incomes grew by 5.5%.
In viewing economic growth as the general stabilizer has been typical of Vladimir Putin's political style throughout his presidency. Steady economic growth in the last five years reduces expenses of market reforms, which in turn spur economic growth. This effect is evident: living standards are improving, which is reflected in the growth of real incomes. The political benefit of it is the stability Mr. Putin mentioned at the beginning of the event.
Apparently, the President is inclined to view the country's main problems, such as the situation in Southern Russia and in Chechnya, through the prism of economic development. He described the unemployment situation in Dagestan, Ingushetia, and especially Chechnya, with up to 500 candidates for one job, as "absolutely unacceptable." The answer is for the southern republics to expand their own economic opportunities, to create new enterprises and build up their economic infrastructure, he believes. The process is already underway and the number of employed is growing steadily, he continued. However, involving the southern republics in economic activities is definitely the most complicated challenge the Russian authorities are facing, perhaps, as complicated as eradicating the hotbeds of terrorist threat in Chechnya. Mr. Putin admitted it indirectly when he indicated that despite "certain plans" concerning the region's economy drawn by the government, these plans could not be "implemented today or tomorrow."
Nevertheless, his answers show that on the whole, economic growth has stabilized the general situation in Russia and even created major preconditions for solving the main social problems in the healthcare, education and housing areas. The state that has gotten rich in the last five years can afford supporting these programs financially without abandoning market reforms in the social area. The country's stability brought about by economic growth makes it quite feasible.
