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Thursday, May 18, 2000

Russian leader aims sights at economy

Duma approves Kasyanov; new leader meets with Putin, decides to cut agencies

By Nick Wadhams
Associated Press

MOSCOW - Lawmakers swiftly approved a tough, polished economist as Russia's new prime minister on Wednesday, backing President Vladimir Putin's plan for modest market reforms that emphasize gradual growth over radical upheaval.
   The vote endorsing Mikhail Kasyanov came after a short and cautious speech in which he said the best way to get the economy moving is to cut taxes and clean up corruption while making sure impoverished Russians aren't overlooked.
   Observers say Putin will concentrate on strengthening the state and leave Kasyanov to focus on the economy.
   "Putin will not have the time to deeply get into economic problems," said Andrei Ryabov, an analyst with the Carnegie Foundation.
   How much Kasyanov will attain isn't clear. His political experience is limited, and Russia's problems are immense: poverty, crime, plummeting public health, unemployment, ineffective laws. Analysts say Kasyanov is likely to focus more on day-to-day economic projects than structural reform.
   Kasyanov enjoys broad political support: In Wednesday's vote in the lower house of parliament, the state Duma, 325 lawmakers voted for him, well above the 226 needed. Fifty-five opposed Kasyanov and 15 abstained.
   The vote contrasted with the emotional, protracted squabbling between the Duma and former President Boris Yeltsin, and demonstrated how strong Putin has become.
   "We now have the conditions for successful development under conditions of political stability," Kasyanov told legislators.
   "It doesn't make sense to carry out reforms without public support."
   Several lawmakers grumbled about approving Kasyanov before Putin makes his economic plans known. They worried that Kasyanov was linked to powerful businessmen and political insiders who played a prominent role under Yeltsin.
   "We are in a difficult situation, having to approve a prime minister but unaware of what program his Cabinet is going to implement," said Nikolai Kharitonov, leader of the Agrarian faction.
   "There are many questions about how close (Kasyanov) is connected to the former president's 'family.'"
   Shortly after the vote, Kasyanov went to the Kremlin to discuss the government's plans with Putin.
   They agreed to restructure the Cabinet, reducing the number of ministries and cutting some government personnel, Kasyanov said later.
  
  

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