As the head of the prime minister?€™s internal administration, Igor Shuvalov is charged with controlling a strong-willed organization that has poisoned the lives and crushed the careers of many a government official.
But Shuvalov is determined to transform Prime Minister Mikhail Kasyanov?€™s office from one that, at times, has seemed out of control to an administrative arm that realizes the interests of the Cabinet.
Shuvalov said that a velvet revolution is taking place. One of the most significant changes so far has been that the Cabinet?€™s administration has already stopped acting as an extension of the Kremlin and now acts as an equal to the presidential administration.
Q: How strong is the structure of the Kasyanov Cabinet?
A: It is still too early to make a valid judgment. Nikolai Pizhkov, the former chairman of the Council of Ministers of the Soviet Union, at one time said that no less than three years is required to become an effective deputy minister and at least one year is needed to gain some stature. I think a year is required in order to evaluate Kasyanov?€™s Cabinet. Six months have passed.
For the sake of fairness it is necessary to say that the government has already achieved some things. Step by step, the government is approaching the task of reforming the natural monopolies. One feature about Kasyanov as a prime minister is that he is not trying to decide everything with one stroke. He has told the ministries more than once that "we don?€™t have the right to failure." Kasyanov says that we cannot allow ourselves to carry out reforms of the Railways Ministry and Unified Energy Systems in such a way that the trains come to a standstill or the regions get left without electricity.
Q: However, great changes are expected from the prime minister. Do you think he might successfully develop a strategy but then lose in a game of politics?
A: It?€™s difficult for me to comment. I am working on the inside and, accordingly, cannot view the situation from afar. As far as I understand, it is dangerous to separate economic reforms from existing political conditions. Yes, world prices have brought Russia success that will allow us to pay off external debts without the use of foreign credits. But it is impossible to allocate 40 percent of the budget for debt payment and ignore social problems. This probably irritates people who think in purely economic categories. When the sterilization of the money supply is discussed for the purpose of repaying external debt, other factors should be remembered, such as defense, pensioners and hidden unemployment. The unique opportunities that we have realized from foreign trade need to be used to the fullest extent. Kasyanov not long ago visited two military-industrial complex enterprises in Severodvinsk. At a construction site for nuclear submarines, he was told that contracts could be signed and employment could be guaranteed for five years in the future. It was only necessary to provide some money for starting the process. They are only asking for the return of that money that was already spent on fulfilling the government order. Look at how the oil producers have placed orders for supplies from metallurgy, pipe-building plants and equipment builders. It would be a shame to overlook such an opportunity.
Q: Have the relations between the head of the government administration and the presidential administration changed since President Vladimir Putin was elected?
A: It?€™s difficult to answer that question. At that time, I was still at the State Property Fund. I can say that if I have to resolve a problem with [Chief of Staff Alexander] Voloshin, I can make a decision quickly. I do not encounter any administrative obstacles in discussing legal problems with [Larisa] Vricheva [the head of the main legal administration]. We sit down and reach a professional decision.
Q: Do you have to get the Kremlin?€™s approval for all of your decisions?
A: No, only for those matters related to the jurisdiction of the administration. The old way of working is a thing of the past.
Q: Although talk about Kasyanov?€™s resignation has cooled down, it is said that the prime minister does not approve of the relationship between Kudrin and German Gref. What is your impression of all of this as a participant in important meetings at the White House and the Kremlin?
A: I won?€™t comment about resignations. That is the jurisdiction of the government and the State Duma. As for the role of the government, our relations are certainly not without conflict. We argue, yell at each other and try to prove to each other the correctness of our arguments. But despite all of this, we maintain friendly relations. As far as I can judge, Kasyanov has no hostility toward Kudrin or Gref. But I cannot deny that we are all emotional people and occasionally express harsh words.
But Shuvalov is determined to transform Prime Minister Mikhail Kasyanov?€™s office from one that, at times, has seemed out of control to an administrative arm that realizes the interests of the Cabinet.
Shuvalov said that a velvet revolution is taking place. One of the most significant changes so far has been that the Cabinet?€™s administration has already stopped acting as an extension of the Kremlin and now acts as an equal to the presidential administration.
Q: How strong is the structure of the Kasyanov Cabinet?
A: It is still too early to make a valid judgment. Nikolai Pizhkov, the former chairman of the Council of Ministers of the Soviet Union, at one time said that no less than three years is required to become an effective deputy minister and at least one year is needed to gain some stature. I think a year is required in order to evaluate Kasyanov?€™s Cabinet. Six months have passed.
For the sake of fairness it is necessary to say that the government has already achieved some things. Step by step, the government is approaching the task of reforming the natural monopolies. One feature about Kasyanov as a prime minister is that he is not trying to decide everything with one stroke. He has told the ministries more than once that "we don?€™t have the right to failure." Kasyanov says that we cannot allow ourselves to carry out reforms of the Railways Ministry and Unified Energy Systems in such a way that the trains come to a standstill or the regions get left without electricity.
Q: However, great changes are expected from the prime minister. Do you think he might successfully develop a strategy but then lose in a game of politics?
A: It?€™s difficult for me to comment. I am working on the inside and, accordingly, cannot view the situation from afar. As far as I understand, it is dangerous to separate economic reforms from existing political conditions. Yes, world prices have brought Russia success that will allow us to pay off external debts without the use of foreign credits. But it is impossible to allocate 40 percent of the budget for debt payment and ignore social problems. This probably irritates people who think in purely economic categories. When the sterilization of the money supply is discussed for the purpose of repaying external debt, other factors should be remembered, such as defense, pensioners and hidden unemployment. The unique opportunities that we have realized from foreign trade need to be used to the fullest extent. Kasyanov not long ago visited two military-industrial complex enterprises in Severodvinsk. At a construction site for nuclear submarines, he was told that contracts could be signed and employment could be guaranteed for five years in the future. It was only necessary to provide some money for starting the process. They are only asking for the return of that money that was already spent on fulfilling the government order. Look at how the oil producers have placed orders for supplies from metallurgy, pipe-building plants and equipment builders. It would be a shame to overlook such an opportunity.
Q: Have the relations between the head of the government administration and the presidential administration changed since President Vladimir Putin was elected?
A: It?€™s difficult to answer that question. At that time, I was still at the State Property Fund. I can say that if I have to resolve a problem with [Chief of Staff Alexander] Voloshin, I can make a decision quickly. I do not encounter any administrative obstacles in discussing legal problems with [Larisa] Vricheva [the head of the main legal administration]. We sit down and reach a professional decision.
Q: Do you have to get the Kremlin?€™s approval for all of your decisions?
A: No, only for those matters related to the jurisdiction of the administration. The old way of working is a thing of the past.
Q: Although talk about Kasyanov?€™s resignation has cooled down, it is said that the prime minister does not approve of the relationship between Kudrin and German Gref. What is your impression of all of this as a participant in important meetings at the White House and the Kremlin?
A: I won?€™t comment about resignations. That is the jurisdiction of the government and the State Duma. As for the role of the government, our relations are certainly not without conflict. We argue, yell at each other and try to prove to each other the correctness of our arguments. But despite all of this, we maintain friendly relations. As far as I can judge, Kasyanov has no hostility toward Kudrin or Gref. But I cannot deny that we are all emotional people and occasionally express harsh words.
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