Russian State Corporations

07.12.2009

On 3 December 2009, while answering online to citizens’ questions, Russian Premier Vladimir Putin said that state corporations were neither good nor bad for Russia’s economy – they were as a kind of necessity. To V.Putin’s opinion, the main task of corporations was related to consolidation of assets in one or the other sphere thereby promoting its development. Some of the corporations, having fulfilled their functions, may be liquidated in the nearest future. The V.Putin’s announcement was close to the previously publicized President Dmitry Medvedev’s position regarding the possibility that the state corporations set up for implementation of concrete projects, would be liquidated.

Lenta.ru, 3.decembris

http://www.lenta.ru/news/2009/12/03/corporate/

On 3 December 2009, through Russian television and radio, Russia’s citizens had a chance to ask questions to Premier Vladimir Putin. First V.Putin’s live conversation with representatives of the public was organized even during his presidency. One of the objectives of the direct line is related to creation of illusion of democracy when each Russia’s citizen has a possibility to turn directly to the Government’s leader and receive an answer to the question of interest for the person. Such “expression of democracy” may have influenced the opinion of a part of population thereby increasing the rating of V.Putin.

Considering the issue of state corporations, change of Putin’s position is significant, for many of the state corporations were established during the presidency of Putin. Initially the state corporations may have secured the country’s development, but now they are “unnecessary burden”, they are not as profitable any more as they were at the beginning of their functioning. Many major state companies also use the important state resources, and if corporations have too strong positions in their spheres, development of private enterprises is hampered.

It can be assumed that the cautious expressions of D.Medvedev and V.Putin regarding the corporations indicate that the liquidation may be quite difficult and needing support on the part of the state. Explanation may lie in the fact that the corporations secure jobs and good salaries for representatives of various political and economic groups not willing, of course, to reject these privileges.