Text of Address of the President of the PMR to State Public and Governmental Authorities


Dear Pridnestrovian citizens!

Dear heads and representatives of the executive, legislative and judicial branches!

Recent elections in Pridnestrovie were marked by the use of many unknown before resources: financial, informational, administrative, directed both from within and from abroad.

Today we should adopt all the best we can from the past and correct the mechanisms of organization of power and the mechanisms of economic organization, as these were not always effective. Sometimes they were and they still are favorable only for small group of people.

Some are contented with the results of the elections, some – are not. It always happens, but for the State the results shown by the elections are of importance:

1) These elections strengthened the image of the State, demonstrated the world that Pridnestrovian people is politically active and it cant independently decide whom it can entrust the State administration.

2) People are waiting for the demonstration of the serious step of the State towards the just government, fair distribution of national wealth, towards formation of modern life conditions.

The right of people to express their opinion in all legal ways is guaranteed by the Constitution, but the existing desire of some representatives of the defeated political and economic elite for manipulation of facts, for usage of old schemes of using power and for schemes of political corruption in State agencies, for leading people astray, for inciting hatred are inadmissible in future. We need the ruling society, not the indulgence to selfish interests and whims of the mercantile “New” Pridnestrovians. It is important to understand that the interests of the Nation and commercial interests are not always the same things.

The society changes and citizens start to express their opinion more active. They assert legal demands to establish order and to form the new conditions of life. From my opinion, it is a good tendency and the duty of public authorities is to operate actively. As for those who try to “sit on an old chair” in the State bodies, I recommend to think not only about themselves, but also about the circumstances which hinder the development. I am sure life itself will get rid of them.

I sincerely thank those who supported the idea of formation of sphere of mutual understanding and development during the elections and who believes in it now.

In the field of foreign policy we declared and started to carry out the policy of mutually beneficial cooperation, primarily in fields of education, culture and economy. We understand that these fields should have top priority in order to improve the life conditions of our citizens and we are ready to reach these objectives through consistent partner agreements. At the same time, such cooperation by no means supposes the change of political purposes of Pridnestrovian citizens which are directed towards nation-building. We are ready to sincere cooperation but we will not welcome the attempts to impose some disadvantageous political constructions to Pridnestrovie to the detriment of both the citizens of the PMR and the Nation.

I would like to remind of the legacy we got in the beginning of this year.

The joint debt of the State exceeds 3 billion dollars, including the gas debt.

Though, the Law on the Republican Budget of 2012 determines the deficit limit of the joint budget by 1.6 billion rubles (147 million dollars) or 68.6% of the income part of the budget, the unprotected but still adopted by the Supreme Soviet of the PMR deficit of the joint budget composes 800 million rubles (72 million dollars of the USA), including 273 million rubles (24.5 million dollars) in socially protected articles.

Besides, the deficit of the Pension Fund is more than 1 billion rubles (97 million dollars).

The overall deficit of State budget, including off-budget funds, on the socially protected articles soars 200 million dollars.

As for the foreign-exchange and gold reserves of the State on January 1, 2012, they were in minus.

In January 2012 the tax revenues of the income part of the budget (excluding the incomes of budgetary purpose funds and accounts) were 75 million rubles (6.7 million dollars). At the same time financing of socially protected articles of the budget took 122.9 million rubles (11 million dollars of the USA).

Thus, only 61% of the expenses were provided by the income of the budget. Even so, the Supreme Soviet adopted several laws, according to which the credit resources of the Central Bank are actually withdrawn and retransferred on guzzling and repaying the deficit.

New Government makes all possible efforts to fulfill all the obligations inherited from the old authorities in these difficult conditions.

I would like to remind that on January 1 Pridnestrovie met again with the efforts to discredit and to take down the peacekeeping operation. Such efforts demanded mobilization of efforts of the Ministry of Foreign Affairs of the PMR, our representatives in Joint Control Commission, executive bodies, Pridnestrovian peacekeeping battalion in order to defy the provoked escalation of the situation.

Thus, our chief task for today is to overcome the debt trap and ineffective administration in spite of the continuing impact of negative factors, including blocking of the possibilities of our economy by artificial barriers on Pridnestrovian-Ukrainian border and non-tariff restrictions towards all our economic agents.

We all see the worsening of overall world economic situation, slump in demand on our export goods with simultaneous raise of prices on raw materials needed for their production. We see raise of prices on energy resources and transportation costs. We worry about the worsening of economic situation in some of our neighboring countries, where experts predict possible hyperinflation and even default.

The risk of decrease of crop capacity still remains because of cold winter.

This winter it became more obvious that absence of due investments in infrastructure of cities and districts, which we lacked for years, led to cut of power in 11 settlements. Almost miraculously, due to efforts of Head of Government, head of Tiraspol's city administration and energy services, center of Tiraspol was not frozen completely because of the stop of the major heat electropower station. Today many of us understand, what means the 80-100% deterioration of power circuits and life support systems.

Pridnestrovian economy, thus, is in state of deep crisis. As they say in hospitals, the patient is in coma already. Stagnation of all sectors of economy is the result of several factors, including sales resistance. Economic disturbances increase poverty, provoke rise of tensions in the society, including among other factors, distrust of population towards the economy of Pridnestrovie and perspectives of its growth.

Delay with introduction of crisis administration measures led only to aggravation of recession. Let me remind, that in Pridnestrovie anti-crisis program had been developed and came into action in the first half of 2009. But the problems, which had been created by the crisis, are still not solved. Implication of part of Russian resources softened the impact of world financial crisis on Pridnestrovian economy.

Usage of inertial model of economic management led to absence of ample leverages and left little wiggle room for current Government.

I would like to mention, that year 2012 was marked with formation of Pridnestrovian Government as independent body with its own head – Head of Government – who is the head of executive power. These changes in structure of the executive branch required time on checkout of interaction of the executive, legislative and judicial branches in new configuration.

All three branches are obliged, according to Constitution, to cooperate and they should realize that the President of the country will not put up with some mercantile interests of any of state bodies to unbalance the functioning of the whole system. The State power should concentrate all efforts in one joint direction, pointing towards improvement of life conditions and protection of rights of our citizens.

We understand that attempts to leave this track under cover of party interests, bright slogans or appearances on the TV of venal politicians, members of law-enforcement agencies or public prosecutors are financed by some forces and that some people hope to fish in troubled waters as they always used to. It is important for State authorities to realize the necessity of strengthening the economic basis of the Nation, which is possible only if moving in one direction. It should be understood that strong Nation is the Nation which possesses resources, not wastes them. I hope soon we shall put an end to problems in this sphere.

I would like to mention one important aspect which provides for carrying out the tasks which State has. Everybody understands perfectly that in order to carry out new forms of administration, of taking effective decisions we need resources, which we lack. Even more, we face the situation when the Government has debts and at the same time fulfils the task of stable financing of wages, pensions and welfare payments. In this connection I ask you to give the executive authorities all possible support and assistance, as at this conjuncture situation predetermines such approach.

Putting obstacles and resistance to it will lead to slowing down of stabilization process as all the authorities are parts of joint State power system. None of the bodies or agencies has enough power, authority and resources to provide for independent carrying out of the National interests.

Some theses on priorities of economic and fiscal policy

Understanding that the budget is the mirror of all the processes in economics, I would like to point out major directions and efforts we need to stabilize the economy. It is obvious, that we have to solve the problem of macroeconomic stabilization.

In order to do it we need to gradually lower budget deficit through growth of revenues. It is necessary to improve conditions of investor attraction into the sector of economy with the highest added value – the industrial sector.

Taking into account high risks which exist due to our State's non-recognition, economic instability (including railway transportation blockade with neighboring countries) the Government is ready to take measures in order to grant additional privileges for economic activity in industrial sphere, new technologies, industrial processing of agricultural products. In a crisis period these privileges can be granted in form of tax holidays for newly created industrial facilities and in form of free economic zones for depressive regions and settlements of the Republic.

In order to achieve positive dynamics of economic growth we need to carry out competently number of measures of state regulation on limitation of activity of major economic players by inclusion of new economic agents, capable of creating conditions for real, not formal competition, which will lead to demonopolization of the segments of the market. Thus we will create presuppositions for involvement of number of new economic players which will suggest new competitative viable goods and services for fair prices.

On the first stage of development and implementation of these measures we can not do without foreign resources. But, calling for financial help, we need to offer our model of gradual measures on improvement of very difficult economic situation.

In order to solve the problems we face we need to examine urgently the complex of anti-crisis measures, which predetermine the stabilization of current economic situation. Not only in politics, but in economics we need to carry out the “clear steps” tactics, which means simplifying procedures which hampered the development of business activity. Conscientious, responsible and socially-directed business should get the most favorable regime.

These measures should be examined in following directions:

Completion of the formation of clear and stable legislation which will determine business organization and running of business, will offer lite preferential taxation regimes for economic subjects who open and develop new types of industry on our territory.

In equal conditions economic subjects should pay equal taxes and taxpayers should know precisely when, how much and how they should pay. For State tax structure should also be economical in expenses on its maintenance.

Completion in 2012 of the formation of transparent regulations for foreign economic activity, simple, fast and opened procedures of customs registration and control over the movement through the border.

Introduction of the mechanism of agreements on mutual obligations with economic agents not exercising stable activity.  From the side of the enterprises these obligations reveal in stable activity with increasing of production volume, increasing of quantity of the jobsites. Tax easing and minimization of non-tariff regulating influence are the obligations from the side of the State.

 Development and promotion of the projects of investment proposals stipulating obligations on allotment of land, construction of infrastructure communications, tax stimulation from the side of the State; on creation of jobsites, production volumes, provision of employment on a certain territory from the side of potential investors.

We must create efficient tandem “business – state” based on partnership. It is necessary to complete the formation of the conditions that will make the deception of State by the representatives of business unprofitable for them. Besides all forms of ownership must be presented in production sectors, not only state or not only private; because it is not reasonable for the state to leave all the sectors of the economy.

It is necessary to define as strategic direction the formation of the group of enterprises providing food security in our country both in the sphere of production and in the sphere of storing of food supplies capable in peak moment to minimize with the help of its' stock the fluctuation of prices on food, in the first place on flour and bread. Eo ipso, to support consumption of product # 1 by low-income social groups, inter alia by means of providing with target subsidies.

We need to improve the functioning of the mechanism of planning, placement and execution of government orders in order to meet the requirements of our State in appropriate way. Besides, governmental assistance in centralized buy-up of surplus of agricultural output for its' selling on external markets is one of the most important perspective directions. 

I. In order to make efficient decisions on mentioned directions I consider, that in given situation it is extremely necessary to delegate to the Government crisis management authorities on a number of key directions of regulation, namely:

1)      to provide broadened possibilities for more precise and clear tax administration;

2)      to complete the formation of corresponding normative acts establishing the right of the Government to formulate conditions on tariff and nontariff measures of regulation of activity on the territory of the PMR for investors, for export-oriented enterprises;

3)      to conclude direct agreements with investors on mutual stable obligations in order to provide governmental support for big investment projects;

4)      in the framework of realization of politics of tax stimulation of production the Government should be provided with a right to decrease tax rates and implement tax benefits in order to increase the production output and employment of population on enterprises which introduce new productions and on organizations which do not perform activity;

5)      to define criteria of use of agricultural land in order to attract investors in real sector of the economy for increasing of efficiency of its usage. In segments of agricultural production separate attention should be paid to introduction of technical crops which will be much in demand on world markets in a medium-term perspective;

6)      the budget of the Republic and its' regions should be formed according to aggregate groups and aggregative indicators; the Government should be delegated with authorities in redistribution of means with an account taken of current situation and practice of governmental activity in crisis situations.

II. For the purpose of stable development of small and medium entrepreneurship, increasing of their contribution to the economy and increasing of the quantity of the employed, it is necessary to define the following supporting measures:

-         the exclusion of duplication of authorities and functions of bodies of both republican and local power, realization of principle of “single endorsement” for the adoption of the decisions by bodies of state power and issue of necessary permissions for the inception of entrepreneurial activity with the use of reserve of acting legislation;

-         trade centers, markets, given to private hands frequently fix overrated rent for the entrepreneurs. In this case the incomes form shadow turnover. The formation of just rent for commercial trading areas, suppression of price collusions and tax evasions, creation of alternative markets, including the municipal ones, with the acceptable rent that will influence the formation of prices on the rent market in whole, are the important elements for rendering  of the assistance to the development of entrepreneurship;

-         it is necessary to give sufficient preferences to enterprises in order to attract investments in the sphere of IT-technologies;

-         creation of conditions optimal for the receipt of credit resources in order to produce goods. Crediting of real sector of the economy must form the basis of crediting of commercial banks by Central Bank.

III. Living standards of the society depend to a large extent on stable functioning of the agrarian sector. In this connection the measures of protectionism directed on the support of local agricultural producers who make goods with high export potential and goods for the internal market are fundamental measures in the sphere of agriculture.

In connection with the fact, that part of state land resources given to different economical agents, including physical persons for long-term use for a period of 99 years is being used irrationally, the State should change the approaches in three of the most important directions:

1)      conclusion of agreements on the right of use of large agricultural lots must obligatory be burdened with conditions of efficient use of the land, of investments, of creation of conditions for the employment of the population;

2)      in order to define the criteria of the efficiency of use of the state agricultural land by large land users, the Government must proceed from the norms of average crop capacity and profitability, employment of the citizens in neighbouring  centers of population;

3)      finding of optimal formula considering the interests of the majority of citizens on execution of State obligations on distribution of  land shares on the basis of certificates fixed by the Decree of the President dated from 1998.

In connection with this it is important to entrust local authorities and Ministry of Agricultural Development with making of the three month revision on the rights of use of the land, including agricultural land.

In order to stimulate the growth of domestic production of vegetables and fruit it is necessary to support and simplify as much as possible the access of given products to the local market and to minimize the export procedures for entering the external market.

IV. While analyzing the outcomes of the privatization, the fact, that more than 90% of state objects were transferred to private property, may be ascertained. In spite of the existence of small quantity of objects that were privatized successfully, the practice of recent years revealed the necessity of changing of normative acts which regulate the order of privatization. The registration of passing of property on the object of privatization should be made only after the fulfillment of the investment obligations undertook by the buyer.

Besides, it is necessary to develop simplified order of the procedure of return of the present objects in case of non-fulfillment of the investment obligations and, as a result, to make a revision of the agreements on the objects of privatization concerning the fulfillment of undertaken obligations in cases, where they were not fulfilled.

We protect all forms of property, but we also must protect the interests of the State from the actions of ordinary swindlers: the investment obligations are fulfilled at full, otherwise we renew agreements on new conditions with the indication of certain periods and sums, involved by the investor in production in order to develop the object, or return the object to state property and find efficient owners. Given approaches must be understandable for everybody and must promote the formation of larger quantity of jobsites and decrease of the level of unemployment.

Reasons connected with non-fulfillment of obligations fixed by the privatization agreement as regards of non-payment of salary, reduction of the number of employees, decrease of the level of production must be imperative for confiscation of property from the investor, with the exception of force majeure circumstances.

Considering the status of non-recognition of our State, it is necessary to develop transparent mechanisms for settlement of investment disputes in Court of Arbitration until the moment of fulfillment of all the investment obligations.

Taking into consideration the fact, that we experience the situation of financial instability, on the basis of experience of Western countries, bodies of state power should be delegated not only with the right to inflict penalties, but with the right to render support to enterprises with different forms of property, including the possibility of temporary fulfilling of the functions of the administration in the enterprises that do not perform economical activity and hold mass reductions of the staff, in order to avoid the destabilization of the situation in society and to restore stable working regime.

V. It is necessary to mention, that, according to the acting Constitution, land, subsoil, waters, woods are exclusive state property and must be accessible for all the citizens; but this does not mean, that their use may be uncontrolled. That is why it is necessary to strengthen the control over the efficiency of use and development of available natural resources and to direct additional incomes from this activity on realization of common goals of the State.

The efficiency of control over the use of available deposits (that of gravel, sand and other fossils) should be increased. For rendering of the assistance to villages in 2012 it is planned to give local autonomous bodies the right to use certain neighbouring sandpits in order to use them for reconstruction of houses and roads and further selling of raw materials for increasing of revenue of villages' budget. Incomes will accumulate in the so-called mini budgets of the villages.

It is supposed to introduce additional charge for large land users. The money received must be also directed to village's budget. In such way we must create premises for stimulation of more efficient activity of local autonomous bodies and for support of village's infrastructure.

VI. In view of destabilization of situation on foreign exchange market, basic directions in the sphere of banking should be defined. In order to provide its' efficient functioning it is important to:

1)      attract additional resources for crediting of real sector of economy. All bodies of power should make efforts to form the attractive investment environment in order to involve investments to the PMR;

2)      decrease the marginal difference while converting the currency by means of creation of economical and controlling premises;

3)      use the contemporary instruments of banking services for simplification of flow of funds and making of payments more widely;

4)      use resources of the Central Bank for crediting of the real sector of economy efficiently.

VII. In 2012 we also mark as conceptual the formation for investors functioning on traditional markets of more intelligible tax system by means of holding of phased reform connected with implementations of income tax, corporate property tax, VAT

In the direction of reforming of taxation system it is important to implement understandable mechanism which is characterized by the priority of the following concept: low taxes, but strict responsibility for tax evasion.  

Basic model of taxation should be adopted from the states – Pridnestrovian basic trading partners.  Rates should be varied with the consideration of specific of regional conditions in order to increase efficiency of traditional production.

In case of complex transformation of taxation system, in order to conduct material stimulation of the citizens, the State plans to take measures on decrease of the rate of income tax, applied to low incomes with simultaneous adoption of progressive tax schedule to high incomes.

Within the frameworks of tax administration it is necessary to consider the issue on provision of transparency of expenses also on doubtful sources of income.

World financial analysts predict further reinforcement of financial world upheavals. Therefore, we need to introduce the criteria of “honestly conducted activity” for economic agents pursuant to which the subjects with positive “image” of economic operations can obtain the so-called “green corridor” in all governing institutions in order to minimize costs on the corresponding procedures, including when passing customs control.

In reaching a favorable regime of investment, it is also necessary to raise the quality of law and order, improve law-enforcement system protecting property, rights and interests of the citizens and entrepreneurs from blackmails and raider attacks of various kind. A key moment should be protection of investors from abuse by the monopolists of their position in the market. The right for any activity must be secure for everyone. To meet this, at the legislative level it is necessary to envisage the strengthening of responsibility for possible inclinations.

Today we should in a responsible manner declare and implement the concept of the highest possible protection of ownership and financial resources put into the Pridnestrovian economy, in reality, not on paper.

At the same time, financial swindlers using legal gaps should be confronted with modern legislation system of protection of interests of our citizens and the nation.

VIII. In the field of customs policy, there is a need to consider the concept on minimizing the customs duty on imported goods having no similar or homogeneous goods within the country (except for excisable goods) increasing responsibility measures for illegal movement of goods through the state border.

Transparent account of the turnover of excisable goods will reveal real sources of shadow economy returns. New trading rules should at this moment create conditions of transparency of domestic market turnouts.

IX. I will briefly point out the need for the law-enforcement structures to implement progressive tactics in suppressing economic and official crimes, so as to drive out economic basis of crime which at times makes use of shadow resources by buying public servants, deputies and other officials.

The Pridnestrovian economy is found in aggressive environment, and in this connection the law-enforcement system should become a more effective instrument of protection of both state interests and infringed interests of business units. Systemic vulnerability of the law-enforcement structure is increased by factors of intrusion of representatives of commercial structures into the given system in order to fulfill explicit scenarios of disguising concrete narrow economic interests. In several cases law-enforcement bodies don't want to mess with some “powers” of Pridnestrovie, and here the Government and security agencies need to direct attention to the creation of prerequisites for restoration of rule of law and realization of the principle of unavoidability of punishment.

X. Protection of citizens' rights at working enterprises (working hours, salaries, schedule, exercise by owners of legal grounds for discharging the employees) should also be a strategic direction.

One more problem is mass “shadow” employment of citizens without formalization of labour relations. Our task is to suggest such mechanism which, on the one hand, will discipline the employees to formalize employer-employee relations and pay their employees minimal wages at the level providing them with basic needs, and, on the other hand, to economically stimulate employees to formalize their relationships.

Efficacy of governmental decisions depends on professionalism of the people who make them. Attraction and retention of qualified personnel in public administration, healthcare, education, in court and law-enforcement systems is impossible without appropriate motivation of labor remuneration. Therefore, changing the mechanism of formation and distribution of the salary fund, defining criteria allowing public sector workers to earn fairly when achieving certain results is also a first priority task in the sphere of labor relations and employment regulation. According to our calculations, about 80% of public sector employees receive wages below the minimum rate of labor payment, i.e. less than 2300 rubles. They are nurses (less than 1500 rubles), doctors (about 2000 rubles), teachers (about 2000 rubles), some government officials – about 2500 rubles. Wages of ministers make up little more than 3000 rubles, Chairman of the Government – 5000 rubles, President – 6000 rubles.

It is necessary to follow the path of stimulating wages of the workers of public sector in conjunction with the results of labor. The first stage of transition to new systems of labor payment should be withdrawal from strict legislatively regulated terms of remuneration which have worked themselves out today, and introduction of a more flexible controlling instrument regulated by resolutions of the Government, which will make it possible to respond relatively quickly to the changing conditions in economy and allow for a differentiated approach towards salary formation in various branches of public sector, with the level of funding being preserved. This approach is expected to be applied during the crises, i.e. for a period of at least 2 years.

Taking into account limited resources available, the Government should clearly define the priorities and goals of using budget means, as well as carry out a package of measures to optimize costs structure, which has already been partially implemented. In doing so, we realize that considerable reduction of budget workers during downtime of enterprises and high unemployment is considered as a destabilizing factor and therefore cannot be performed in full measure before real economic situation is changed.

XI. In the sphere of transport infrastructure, we can see a problem when a group of carriers fixes prices through actual trading with the routs which were assigned to commercial enterprises by the state.

In the given sphere the priority direction is to increase the quality of provided services through carrying out of the formula: route granted by the state authority shall be provided by real carriers having the base and a required rolling-stock.

In this connection, it is necessary to improve regulatory documents to foster development of transport carriages, as well as to urge to use more modern transport means in passenger transportation, that would enable increasing of the safety of movement of our citizens.

One of the directions of state policy is to enhance efficacy of the use of means of road fund.

To apply sound policy of constraining the growth of public spending connected with maintenance, repair, reconstruction, building and development of the road network by using cheap local raw materials (gravel, crushed stone, sand).

The presence of a developed transport infrastructure is a necessary prerequisite for economic growth and improved investment activity. Hence, in order to initiate qualitative shifts in our economy in 2012 it is supposed to form transit transport corridor near Dubossary and Tiraspol (the village of Bychok). Attention shall be focused on the quality of the roads, speed of movement across the border, and increasing of public safety during foreign citizens' stay on the territory of the PMR.

XII. The best indicator of life quality of the citizens is the level of comfort of their housing. Given poor technical condition of the system of provision of towns and regions, the key actions for modernization of the housing and utilities sector at the current stage will become the highest possible centralization of the given sector of services in order to optimize state expenditures aimed at the needs of the housing and utilities sector. These directions of reforming the housing and utilities sector require additional investment which can be provided by efforts of state and local self-governing authorities along with additional sources of funding. To realize reforming programs we need serious external attractions estimated at about 50 mln. U.S. dollars in order to avoid possible man-made accidents.

XIII. The level of social protection of the population is based on economic possibilities of the state which, frankly speaking, are extremely small, simply negative. Therefore, the mid-term priorities in a number of possible areas are seen as following:

1. Attraction of additional financial resources in the sphere of healthcare and social protection in order to purchase modern equipment to increase the quality of medical services through implementation of investment projects, private including.

2. Creation of alternative network of social drugstores, competitive with the private ones.

3. Making the system of free and paid services clearer and more accurate.

4.  Significant material stimulation of employees of medical sphere in order to enhance the level of qualification. It means that a health worker who has the highest category should have a higher motivation to work.

5. In order to increase social protection of interests of the population in health sector, creation of an institute of health insurance starting with 2013 is planned. Reconstruction of an acceptable system of healthcare, according to expert evaluation, already requires investment in the amount of about 70 mln. U.S. dollars.

Here we shall emphasize the major stages of the social program implementation:

1) in order to support young families we see it necessary to re-establish institutions of co-financing of the construction by state and municipal bodies and potential bidders of housing cooperatives for the construction of housing designed for young families. At the same time, it is necessary to make greater use of available local resources (sand, cement, gravel and metal) for the construction of low-budget housing, thereby stimulating internal consumption in the given market segment. Simultaneously, the state will re-create the structure of state order for building companies. The state will develop a program of land allocation for young families for the construction of households;

2) kindergartens will become available by returning the premises which were earlier given to state authorities. Thus, in Tiraspol, in particular, by the end of 2012 we plan to return three-four kindergartens, and by the end of 2013 – to repair them;

3) it is necessary to promote greater motivation of the workers of pre-school institutions. Here also we need new forms of interaction of state authorities and local self-governing bodies with parents.

4) in order to assist the employment of students and young specialists, we need to grant additional tax relief to terms of taxation for legal entities that attract young specialists to work;

 5) we need flexibility of the system of professional education in the Republic in the direction of compliance with the requirements of labor market. In the conditions when the state has no funds for upgrading technical base necessary for training of skilled workers, it is necessary to look for mechanisms of interaction with economic agents inside and outside of the PMR, primarily with those who are interested in qualitative labor force.  

Since conservative approaches of regulation of the country's economy may lead to aggravation of economic situation, at the current stage of development of our state it is expedient to apply encouraging anti-crisis instruments. For effective implementation of adopted anti-crisis measures, all state bodies must act in a consolidated manner and make specific decisions to stabilize the established crisis situation. Efficiency of administrative decisions should be determined by the system of successive and coherent steps, from planning and realization to control and accountability. Taking into account the fact that there are simply no funds for stimulation of changes, governmental decisions must be that asset that will influence the positive dynamics. And the more coherent and immediate we will implement our plans, the more efficient will be the work of legislative, executive and judiciary branches of power, and the more successful will be actions of state authorities in whole for our citizens.

Today I want to thank our citizens for their patience and diligence, and assure that the course towards positive transformations is unchanged. In very difficult conditions 2012 should become a year of restoration of controllability of the state and stabilization of economic situation in the country. Our great potential is our positive thinking, constructive actions, partnership interaction of all citizens and public organizations with local self-governing authorities and state bodies. In such difficult conditions, strength of spirit, spirituality, work for the sake of good when the strong helps the week and everyone safeguards stability are essential to the success of our actions.

I am sure that in creating conditions for disclosing human potential inside the PMR and with active cooperation with external world and our friends in Russia, success is waiting for us.

I thank all the citizens for their understanding and support!

Thank You for Your attention!!!

See original material on the Official website of the President of the PMR