PRESIDENT OF COMMERCE AND INDUSTRY CHAMBER FOR FORMATION OF NATIONAL DEVELOPMENT STRATEGY

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MOSCOW, November 17 (RIA Novosti) -- President of the Russian Trade and Industry Chamber Yevgeniy Primakov spoke at the Mercury-club session for the formation of the -national strategy of Russia's development.

"The reformations period proved that the market itself is incapable to take care of business in Russia," Mr. Primakov said mentioning that the country had no intentions to restore Soviet direct planning strategy.

According to the president of the Trade and Chamber Industry, a number of Russian scientists and politicians seek for the common strategy of Russia's development, capable of setting definite aims for progress. As an example to achieve the set goals Mr. Primakov named the recently approved concept of the budget reformation. "The fact that by the April of 2005 all Federal agencies are to submit to the Russian Finance ministry their strategic plans is a definite achievement with a further aim to make an objective management budget in 2006," Mr. Primakov said.

Mr. Primakov believes that the all-national strategy should rest on the indicative methodology instead of the directive, which presupposes a commendatory strategy.

Mr. Primakov explained that the strategy should represent the system of indexes concerning social-economic, science-technical, investment, economic and foreign economic background, which the society must reach within a definite period of time.

"At the same time it's essential to abide by the measures on a level of state bodies, e.g. normative, financial and taxation, necessary to give impetus for a full-scale economic growth," he said.

At the same time, according to Mr. Primakov, the introduction of the indicative economic planning is worsened by the fact that 40% of the national economy is in the shadow. According to some data, almost 100% of enterprises avoid taxation payments and approximately 80% of them lead a "gray" or "black" policy of handling wages. Therefore, Mr. Primakov believes that the introduction of indicative plans assist the fight for the transparency of the economy.

He also stressed that the planning under the current circumstances must represent a definite social directive. "The quintessence of the indicative planning doesn't rest on the record-high metal smelting and tractor manufacturing, but on constant and perceptible progress in the life of Russian people," Mr. Primakov said.

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