Medvedev pledges freedom, legal reform

16 Feb, 2008

Russia's likely next president Dmitry Medvedev said on Friday that freedom, private property and an independent judiciary would be the central planks of his administration.
In a speech setting out his programme at an economic forum in Siberia, Medvedev, who has been endorsed by outgoing President Vladimir Putin, also called for tax reform to support economic growth.
Speaking later to reporters, he said Russia and the United States share common values and have no choice but to cooperate with each other. His remarks contrasted with the forthright rhetoric Putin often directs towards Washington. "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," said Medvedev, a first deputy prime minister.
"We need to root out the practice of unlawful decisions 'by request' or for money." He also repeated earlier promises to ensure personal freedoms and an independent and free press. "We're talking about freedom in all its forms - personal freedom, economic freedom, and in the end, the freedom of self expression," Medvedev told the Krasnoyarsk Economic Forum.
Medvedev, 42, spoke more about the development of social welfare projects than international affairs or the resurrection of Russian military power, themes Putin addresses regularly. On relations with the United States, Medvedev emphasised cooperation rather than the two countries' differences over issues such as Kosovo and the US missile defence shield. "It is necessary that the United States and Russian Federation cooperate ... It is inevitable," he told a group of regional journalists.
"If before we could ... build walls to insulate outselves, in today's globalised world, when our states share, in effect, a common set of values, such cooperation should continue."
Medvedev also touched on the need to protect private property. Critics of Putin's administration accuse it of flouting property rights by effectively denationalising private firms, especially in the oil sector. "Respect for private property has to be one of the foundations of the government's policies," Medvedev said. "Today more often than not, the government itself is not taking measures to defend the rights of private property holders."
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 stance 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. 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, he said.
"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 the regional reserve currencies," he said. Russia's banking system, which experienced a liquidity crisis last year in step with global markets, can also count on support from the National Wealth Fund and the pension fund. But the role of officials should diminish when it comes to managing large government-owned corporates.
"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."

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