Russia will be a major agricultural power in the 21st century
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Russia will be a major agricultural power in the 21st century
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Russia will be a major agricultural power in the 21st century
15 Nov 2006  printer version
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raiting (-1/3) Russian Agriculture Minister Aleksei Gordeyev talks with MN's Dmitry Dokuchayev about this year's harvest and national priority project At a recent Cabinet meeting, President Vladimir Putin directed his ministers to enforce law and order on the country's outdoor food markets. What measures are going to be implemented here? Back in January, when we launched a national priority project in the agro-industrial complex, we realized that was a key problem for small farms. We had asked them to produce more milk, meat and vegetables, but they said they had difficulty selling even what they were producing right now because they had no access to these markets, which are monopolized by intermediary agencies that dictate prices, making their operation simply unprofitable. So we urged all municipalities to create consumer cooperatives - agricultural retail complexes where producers will be able to sell their produce without any intermediaries, substantially reducing their costs and bringing more food to the market. I believe that this is a priority for the municipal authorities. Has the national project had any impact on the sector so far? Needless to say, the project will not automatically resolve all problems that have accumulated in the agro-industrial sector. Furthermore, many of these problems remain outside the national project. For example, the so-called price disparity - i.e., the rapid rise in energy prices. Or the expansion of foreign producers on the Russian market - in other words, our dependence on imports. Or social programs in the countryside. But at the same time, the national priority project helps address several key problems. For instance, modernization of the stock-raising sector: Investment in the sector has quadrupled so far this year. What is even more important is that private farmers have seen that they can rely on state support. This year the number of farmers who have received preferential loans has increased 900% on last year. Furthermore, under the national project, young specialists working in the countryside are entitled to free housing. It would be strange if I did not ask you about this year's harvest. Generally, the results are quite good, especially considering bad weather conditions. We will harvest 73 million metric tons of grain. This is enough to meet our domestic needs and maintain our export potential (about 10 million tons). The vegetable, potato and sugar beet harvest will also be good. On the whole, gross agricultural produce will grow this year, even if slightly, compared with last year. Looking ahead 15 or 20 years, do you believe Russia will remain an agricultural power? I believe that Russia will, without a doubt, be a major agricultural power in the 21st century. Consider: We have about 2% of the world's population, 10% of the world's arable land and about 20% of fresh water. So we have a natural base for agriculture. Furthermore, agriculture will eventually become one of the most lucrative business sectors. After all, according to expert estimates, the world's population is growing 50% faster than agricultural production. So, despite all the efforts, the number of people starving in the world shows no signs of declining - 800 million. Another 1.5 billion people are undernourished. Imagine what a huge market this is! Another highly promising line of development is production of biomass energy as an alternative to traditional energy sources. It is becoming increasingly difficult to produce oil and natural gas, while their reserves are not infinite. So it is quite possible that a new Cabinet position will be created soon - agriculture and energy minister. But to go back to the present government, you are one of the veteran ministers: You have been in this position for seven years now. How is the Fradkov Cabinet different from the others that you have worked in? Each Cabinet had its specific goals and priorities. Seven years ago, in the wake of a financial meltdown, the economy was in very bad shape. It seemed that there was no way out. But today the economic situation is entirely different and the priorities are different, which applies to all Cabinet ministers, including myself. Another point I would like to make is that the current head of government is, without a doubt, a highly experienced state-level manager. He acquired extensive experience working during the Soviet era, as well in a new Russia. He had overseen different spheres before heading up the government. Still, it is probably an open secret that there are certain disagreements between some Cabinet members. For example, Economic Development and Trade Minister German Gref favors Russia's early accession to the World Trade Organization, whereas you say there should be no haste and that the interests of domestic agricultural producers should be protected first. I suppose the general context is much broader than the purported disagreements over WTO membership. In fact, there are none. But I may not necessarily agree on a number of points with the liberal economic course that was set back in the early 1990s. Unfortunately, it still prevails although it has created many serious problems for us. I am convinced that we have overindulged in liberal models on the macroeconomic level, to a very considerable degree losing a sense of reality. For instance, it is declared that the rate of the ruble is of paramount importance, and no effort is spared to maintain it at a certain level. But in doing so, we should look to see how that affects a particular sector or region. I believe that it is wrong, especially during a transition period, to deal with economic problems in general: We need to deal with specific problems in a target-specific way. You are one of the few party card carrying members of the Cabinet. Do you feel more secure in your position insofar as you rely on the United Russia course, and do you believe it is a good idea that a party that wins an election should form a government? I am convinced that government ministers should represent particular party institutions insofar as parliamentary elections reflect society's political preferences. It is a party with a particular ideology that wins the majority so this political force should have an opportunity to form a government, carry out its program, and hold each minister responsible for its implementation. I suppose that eventually we will have three or four strong parties with distinct ideologies that will be able to compete on the political field. So it is a good thing that such parties are already being formed, including "from above." Because it was wrong when we had hundreds of parties that emerged atop the wave of liberalization that were completely unknown except to their founders. That is not political competition but pure fiction which only misleads and confuses the public and leads to political irresponsibility. Nor do I believe there should be parties organized on the professional principle - miners, metal workers or agricultural producers. The party field exists not for lobbying industrial interests but for a contest of ideologies and programs. That was why we decided to join United Russia. It was absolutely the right decision if we want the agricultural sector to be represented in the State Duma, passing appropriate laws and influencing the parliamentary faction. This is how the national priority project was approved and a number of important laws adopted - e.g., on the unified agricultural tax and on restructuring agricultural enterprises. No other industry has such laws, but we have them. Source: Other articles in Business, Finance:  Readers' CommentsNo comments Add your commentary |
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