On March 19 a meeting of the RF Ministry of Industry, Science and Technology Board (Science Ministry), where 'measures on development of light industry of Russia' were discussed, was held. Opening the Board meeting Minister Iliya Klebanov noted, that the Ministry has to develop a clear and constructive set of measures for 5-7 years on taking the light industry out of stagnation and submit it at the beginning of April for the consideration of the Government. According to Mr. Klebanov, at the beginning of 90ies the state did not secure the necessary measures for the protection of the internal market, which was flooded by the cheap and often low-quality goods. The situation is aggravated by the fact that the Russian market of the light industry production is not clear and is not structured in a proper way. "However, noted Mr. Klebanov, we have no right to leave this industry without attention and support of the state". The minister said, that all proposed measures aimed at the support of industry must have a clear economic foundation and be accompanied by the detailed calculations. According to Mr. Klebanov it is expedient to single out about 300 enterprises in the industry and through their direct support stimulate technical renovation, production growth, and improvement of the production quality.

Light industry includes 3 branches: textile, the share of which in the total production output is 46.5%, tailoring - 30.3% and leather fur and footwear industry - 22.6%. There are more than 16 thousand enterprises in the industry with 827 thousand employees. As was noted at the meeting, at present the share of light industry in the total Russian industrial production is 1.5%. In 1999-2001 as many foreign suppliers left the Russian market after 1998 crisis the local production volume was increasing. This was also stimulated by the fact that the manufactures were holding the prices while the expenses were growing. However, by now the factor of replacing the imported goods and holding prices policy have been exhausted. In 2000 the index of physical production volume equaled 120.9%, in 2001 it was 105% and in 2002 - 96.9%. As a result of the discussion the Board came to the conclusion that in order to increase compatibility of light industry general tasks of technological renovation of the industry must be solved, of replenishing current assets of the enterprises, organizational reforming of the enterprises, raising effectiveness of the scientific and technical provision of the production. The strategic and most cash consuming task of technological renovation of the industry, may be solved stage by stage, first of all for the group of basic enterprises, producing in total more than half of the industry budget and having positive balance of their budget. It is expedient to develop the program of technological renovation of the light industry.

Source: IA Regnum
07.05.2003