As he spoke in the State Duma (parliament’s lower house) on May 19 prior to its voting on his nomination as prime minister, Sergei Stepashin touched on almost every topic of interest to both the parliament’s main political parties and the country as a whole.
The would-be prime minister spoke of an urgent need to adopt laws agreed upon by acting First Deputy Prime Minister Yury Maslyukov and International Monetary Fund Director Michel Camdessus as a prerequisite to loans being issued to Russia. But Stepashin qualified his words by promising to introduce special measures aimed at cushioning the impact of the new laws on the populace.
Stepashin also promised to undertake pension and wage adjustments, bringing them in line with inflation.
He also announced a firm resolve to leisure chairs intensify the struggle against crime and promised results on specific cases, and in particular, one raised by Grigory Yavlinsky’s Yabloko faction, that of Larisa Yudina, a journalist recently assassinated in the republic of Kalmykia.
At the same time, Stepashin said he would not permit any violation of civil rights or abuse of emergency powers in the battle against crime saying: “I am not General Pinochet. My name is Stepashin.”
Stepashin promised to maintain a degree of continuity with the policies of former Prime minister Yevgeny Primakov’s Cabinet, but also made it clear his aspirations went further than just preserving the stability achieved by the previous government. “Our mission is to create a new economic equation,” Stepashin said.
There are more examples suggesting President Boris Yeltsin’s new proetge, now confirmed prime minister, has a way with Duma deputies and is able to communicate his message without provoking conflict.
One element still lacking however, is a clear insight into what the new prime minister’s policies might look like.
Presidential Press Secretary Dmitry Yakushkin told journalists Boris Yeltsin expects the new Cabinet’s priority to be smoothing the way for upcoming parliamentary elections. The president, he said, wants the country to have a parliament comprised of professionals who will occupy themselves with creative legislative work, rather than with fighting executive authorities.
But it is well understood that further market reforms will require unpopular measures, which will only bear fruit in the future, whereas a successful election campaign requires some fast-acting populist measures.
This is why the government needs as much money as possible to pearl beads pay for policies aimed at diffusing increasing social discontent. That puts the issue of IMF loans at the top of the new government’s political agenda.
Even before a vote on his nomination was taken in the Duma, Stepashin had already attempted to push along the laws the IMF says Russia must adopt before any money will be made available. However, the legislation required is still not ready.
Meanwhile, Russia has failed to service its domestic hard currency debt (OFZ) for May, most of which dates back to Soviet times. As a result, the Russian government risks a technical default on its Soviet-era debt, without reaching an agreement with its creditors for restructuring or write-off. The move is probably premised on the government betting the West would prefer not to akoya pearl jewelry declare Russia bankrupt, and most probably it is right.
The logic of events suggests the focus of the 13 months leading up to the presidential elections in 2000 will be on tactical maneuvering aimed at preventing social unrest and avoiding a formal sovereign default.
Several obstacles may confront the new cabinet, including internal rivalry between Stepashin and his current First Deputy Prime Minister Nikolai Aksyonenko. Aksyonenko has exhibited ambitions to be the focus of power in the new Cabinet.
At the same time, the new Cabinet will probably enjoy certain benefits from last year’s ruble devaluation, as the decision taken by Sergei Kirienko’s government finally takes effect. The improving state of the global oil market should also prove an advantage for Stepashin’s Cabinet.
On the eve of the Duma vote confirming Stepashin as the new prime minister, the ruble rate in the morning and the afternoon MICEX sessions drew level for the first time. Meanwhile, the dollar rate in local Moscow exchange booths also scored a first as it fell below the official rate.
It seems the pressure on the ruble has ceased, with no special effort on the part of the government. This is encouraging, even though it is impossible to predict how long the situation will last. In any case, even if the government fails to cultured pearl jewelry take any resolute measures on the economy, the market’s natural behavior might still provide a certain improvement in Russia’s economic condition in the pre-election year.