Ramzan Kadyrov Chooses Freedom
// Chechnya asks Russia to restore it with an ultraliberal economy
Prime Minister of Chechnya has taken the last step in establishing an autonomous republic within Russia. The Chechen parliament has introduced a draft law “On Special Conditions for Entrepreneurial Activity in the Territory of the Chechen Republic” into the State Duma. The Chechen government wants to be the main regulator of investment activity in the republic for the next 14 years. The draft law proposes that the Russian government give it some of the authority to establish an ultraliberal economic regime with the goal of restoring the Chechen economy.
Kommersant has learned that the Chechen draft law is not scheduled for examination in a plenary session of the Duma and most likely has not been conciliated with the Kremlin. Ramzan Kadyrov, who fully controls the Chechen parliament, has taken the next step to establishing full control in the republic. The draft law would give the Chechen government control over mineral resources. Kadyrov is not counting on the state market management that is so popular in Russia, however. At least in theory, he is setting his stakes on the liberal economic model.
Abu-Rashid Zakaev, head of the budget, banking and tax committee of the Chechen parliament and one of the authors of the draft law told Kommersant that “maybe some of our proposals, for example on taxation and customs benefits and the provision of republican authorities great rights to manage natural resources, will seem too bold to the Russian lawmakers. But we are certain that those are the conditions under which investment will come to the republic and business will develop actively.” He added that 65 percent of budget income now comes from individuals.
The draft law divides its proposals into three groups. The first group is for the implementation of targeted investment projects in the republic under special rules for any production in the Chechen Republic that adds more than 20 percent value to its product (10 percent for electronics and complex household appliances). The second group is gives the Chechen government authority over enterprise, including licensing of all activities except precious metals, atomic energy, banking and brokerage and weapons production. Also the republic wants the right to lease land and real estate for up to 49 years. The third group of proposals suggests sharing the right to conciliate the registration of foreign companies with the republic, limit migration and other rights, similar to the division between the People's Republic of China and Hong Kong.
Even the most liberal of politicians were concerned about the proposals. Head of the Russian Union of Entrepreneurs and Industrialists Alexander Shokhin stated that he was “against special conditions for specific regions… The forms of support being implemented through the budget are sufficient for the restoration of the Chechen economy.”
It is likely that Kadyrov is asking for too much this time. Only heavy pressure from the Kremlin could move the Duma to pass the law. It is possible that the draft is law is calculated to make Kadyrov's real wishes seem more modest by contrast.
Dmitry Butrin, Musa Muradov, Alvina Kharchenko
All the Article in Russian as of Sep. 07, 2006
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