Korben International Industrial and Financial Corporation, Inc. Korotkevich Peter Leonidovich

Basic principles and criteria of structural policy of the state development

Peter L. Korotkevich – academician of the Russian academy of natural sciences, a big statesman and scientist, a specialist in organizing and management of state, industrial and defense construction and control of complex and global systems.

At the suggestions of Peter L. Korotkevich and subject to instructions of the First President of the Russian Federation Boris Yeltsin, a group of big Russian statesmen, scientists-specialists in the field of management of the military and defense sectors as well as state construction has worked out, approved and adopted plans and programs underway presently, bearing a character of a special national importance and defining the ways of the strategic development of the Russian state.

State construction in the eyes of the author and analyst


- Peter Leonidovich! It has been ten years by now since the beginning of reforms in Russia, which drastically changed the image of the country. Numerous replacements of the teams of reformers, generally young and energetic people, do not give desired results. A second time over the two years Russia proved to be incapable to pay for its external debts. You have a big practical knowledge, an experience in organizing and managing the state and defense construction. How can you assess the present condition of the country?

- Inflation and unemployment, downturn in production, daily growth of prices, lawlessness, terrorism and arbitrary rule, raging of crime, personal violence, population decrease and continuous defaming of the dignity of the people and the Russian state with its enormous potential, created by three generations, who survived personal horror and nation-wide tragedies in different periods of its trying history, paying the price of life of the millions to defend independence of our Motherland, who reinstated cities and villages with their blood and sweat and the economy, destroyed by the war – here are the realities of our life on the threshold of new millennium.
The people of our country, whose money were used to create all sectors of the industry and objects of the economy as well as to finance the USSR and Eastern Europe Armed Forces, the law enforcement bodies and the state security services and to develop and finance science, medicine, education, culture etc, to support and develop the world socialist system and the developing countries, the people of the great country – the maker and the genius - turned out to be torn away from the results of its labour, was thieved, robbed and drawn into the system crisis which became a result of untalented and illiterate internal, external and manpower policy, carried out in the country for many years.
As people begin to realize this reality some questions begin to arise: what was the main reason for such condition and what is the role and place of the head of the state – the president? What is the strategy for the course of social-economic development of the state, a structural policy, how the managing system of the bodies of the state power is going to be formed, how the cadres are to be selected and placed, and what will be the measures, intended to strengthen financial-economic, industrial, social, defense, domestic and external policy held in the country over the last decade?
It needs to be said that as a result of destructive manpower policy and purposeful collapse of the state run public authorities the state has stepped up to a system crises. One may see a loss of priority, strategically important trends of the state development, a broken financial and credit system, disregard of economic laws, depreciation of state-owned assets, negative trends in the financial, stock and currency markets of the country. This means that the work of important institutions, which are the stem of the statehood and the basis for holding an independent internal and external policy turned to be totally disrupted.
A lack of practical knowledge and organizational talent with leaders of the state, implementation of their decisions of national importance in a distorted form, as well as official forgery have brought the country by the beginning of the new millennium to collapse of the foundations of its economic potential, production and industrial base, which has been created over the last 50-60 years by attraction of material and manpower resources of the entire state and which was the basis of the national riches and ensured political, economic and military security.

- Where do you see the main reasons for our social and economic disorder?

- The main factors, which affect the efficiency of internal and external policy of the state are the principles of formation of the bodies of state control, their personal cadres, which represent the state power in the center and locally and which are the structural and organizational system of state control as an aggregate of representative (legislative), executive (administrative) power and judicial system.
The bodies of control of the state power shall be formed in compliance with the constitution of the state, its structural policy and shall act on the basis of “Provisions of the structure of the bodies of control of the state power of the Russian Federation” and shall be approved by the president of the country.
In order to work out and implement the strategy of reforms in the Russian Federation in the field of social-economic, industrial, scientific and technical, defense, financial, investment and agrarian policy as well as to resolve geopolitical issues of national security and defense and political doctrine, strategically important for the country and determining the place and position of the Russian state in the world system and necessary to hold independent internal and external policy, a group of scientists submitted to the president of the Russian Federation, Boris Yeltsin, approved proposals dated 26.12.1996, ¹48610, a draft Decree of the President of the Russian Federation and Provisions of "Forming the State Council under the President of the Russian Federation".

- One cannot help agreeing with such assessment, but where shall the main vector of reforms be pointed to? As far as we know, in one’s time you offered to the leadership of the state tested options for restructuring of the bodies of control of the state power in Russia, concrete mechanisms for restructuring the top chains of the state control system. Could you please tell, what lies in the basis of these proposals and describe in particular the proposal to set up the State Council under the President of the Russian Federation? You sort of forestalled the today’s setting up of this body of power in the overall structure of the state control.

- The essence of proposals sent by me to the president in 1996 comes to the idea of a necessity to create in the country a new collective control body – the State Council, the main provisions of which read as follows.

1. The State council under the President of the Russian Federation (hereinafter – the State Council) shall be created subject to the Decree of the President of the Russian Federation.

2. The State Council shall be created as a deliberative body under the President of the Russian Federation in order to work out and implement the strategy of reforms in the field of socio-economic, industrial, scientific and technical, defense, financial, investment and agrarian policy, as well as to resolve problem issues of national security.

3. The State Council shall be guided by the Constitution of the Russian Federation, Russian legislation, the principles of independence, all-inclusiveness and objective character in expert examination and these Provisions.

4. The State Council shall carry out its activities in the following main directions:
assessment of the activity of the government in the field of industrial policy;
assessment and holding of independent expert examination of large socio-economic, scientific and technical, investment and other programs and projects, submitted under consideration of the President of the Russian Federation;
forecasting of social, economic, ecological and political aftereffects of the main decisions, taken by the bodies of state control;
analysis of the state and trends of the development of the branches of the Russian economy as well as working out of recommendations over the issues of structural, investment, scientific and technical policy;
assessment of the course of economic reforms, privatization of the state property, land reform and development of market relations;
working out of measures to support domestic manufacturers;
working out of recommendations in export-import policy, improvement of competitiveness of manufactured products and other problems in the foreign-economic field;
analysis and working out of recommendations in the main issues of national security, defense policy, arms programs, conversion of defense sectors of the industry and use of their scientific and technical potential in the interests of reforms, held in the Russian Federation;
assessment of the state of protection of information in the political, economic, military, scientific and technical and other fields;
holding, at the instruction of the RF President, of examination of the course of the programs of social-economic development and economic reform in the Russian Federation as well as implementing other works designed to provide expert and analytical support to the RF President.

5. The State Council shall incorporate the Chairman, his deputies, executive secretary and members.
The Chairman and his deputies shall be appointed by the Decree of the President of the Russian Federation and shall be held responsible under the activities of the State Council.
The Chairman of the State Council and in his absence his deputies shall run the activities of the State Council.

- they shall take part in the work of the highest bodies of the executive and legislative power of the RF;

- they shall form and submit for approval to the President of the Russian Federation the staff of the State Council and shall attract for its work specialists of a list of leading scientists, top managers and businessmen of the Russian Federation and Foreign countries and international non-governmental organizations;

- they shall account to the RF President for the results of activities of the State Council over each year as well as upon first request of the RF President.

6. The minutes of the sessions and resolutions of the State Council shall be approved by the Chairman of the State Council (RF President) or by his deputies.

7. Interaction of the State Council with bodies of the executive power of the RF shall be based on independence within the scope of its competence, stipulated by these Provisions.

- How do you see the basic element of the State Council, its Presidium?

- The standing members of the Presidium of the State Council shall be heads of some central bodies of state control of the RF, heads of legislative, control, supervisory and judiciary bodies subject to the enclosed list. The appointed members of The State Council shall be heads of representative and executive power of the subjects of the RF and representatives of the President of the RF in the federal districts.
The State Council could surely incorporate the following officials:

Chairman of the State Council – President of the RF
Deputies of the Chairman:
First deputy of the Chairman of the State Council –Chairman of the Government of the Russian Federation;
First deputy of the Chairman of the State Council –the head of Administration of the President of the RF;
The Deputy Chairman of the State Council – Chairman of the Council of Experts under the State Council of the RF;
Deputy Chairman of the State Council – Secretary of the Security Council of the RF.
Members of the Presidium of the State Council:
1. Chairman of the Council of Federation
2. Chairman of the State Duma
3. The Minister of the Federal Ministry of State Security of the RF
4. The Minister of defense of the RF
5. The Minister of the Interior of the RF
6. The Chief of the General Staff of the Armed Forces of the RF
7. The Minister of the Foreign Affairs of the RF
8. The Minister of the Economy of the RF
9. The Minister of Finance of the RF
10. The Minister of Justice of the RF
11. Attorney General of the RF
12. Chairman of Constitutional Court of the RF
13. The Chairman of the Supreme Court of the RF
14. Chairman of the Supreme Court of Arbitration of the RF
15. Chairman of the Central Bank of the RF
16. Chief of the Central State Treasury Department under the President of the RF
17. Executive officer of the President of the RF
18. Chairman of the Federal Reserve Bank of the RF
19.Chairman of the Foreign Economic Bank of the RF
20. Chairman of the Vneshtorgbank (Foreign Trade bank) of the RF
21. Chairman of the Gohran of the RF
22. Executive secretary of the State Council

- What gives creation of the State Council with such a staff and authorities?

- The State Council under the President of the Russian Federation shall embrace all the structure of power both in the representative, executive and judicial bodies of the country and shall become a beginning of reforms of the structural policy of the state. It shall be filled up with people of the list of big statesmen, disposing of high authority, professional training, high moral, spiritual and ethical qualities.

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To resolve burning issues it is first of all imperative to attract the a.m. cadres.
Selection and appointment of cadres will enable to resolve all tasks. Only rightly selected cadres of the country in one’s time enabled over a respectively brief time span to mould intellectual potential of the country having no analogues and exceeding over its level the same potential of other countries, to create basic and defense sectors of the industry, to develop fundamental, scientific and applied research, to strengthen security of the country.
The country does possess such cadres. However regretful it is, today they are pushed aside and remain unclaimed!
The most important in the structure of the state power control bodies are the bodies of state security, financial, supervision and law-enforcement bodies, which ensure an all-round acquisition, analysis and protection of information, its monitoring and tracking in the course of implementation of taken decisions, especially in the course of implementation of the tasks of national importance. Collection and system analysis enable to select an optimum model to resolve complicated tasks of the state control, which is the main purpose in working out the strategy of a state and determine the trends of its development, domestic and foreign policy, the place of a state and a president inside the country and in the world arena.
The issues of geopolitical changes in the world should occupy a rather important place in the work of the State Council in order to avert the course of events unfavorable for Russia. They require immediate restructuring of the bodies of state control, consolidation of leading employees and the central apparatus, revision of functional responsibilities and composition of a number of state committees, ministries and departments, approval of a new structure of the central bodies of state control of the Russian Federation. The State Council should be allocated the main role with basic functions of the central body determining both a strategic course of the state as a whole and the integration processes of the Russian federalism.

- Creation of the State Council in itself does not resolve the task of a drastic increase of efficiency of the state control. Its formation surely must entail respective restructuring of the entire system of the state control, which we call a structural rebuilding. What is your idea of the overall structure of the central control bodies? What results can we expect from holding of such reform?

- Implementation of the offered structure of the central control bodies of the state power in the RF will enable to redistribute functional obligations, the field of activity and powers of the structural subdivisions of executive bodies of power, to establish strict boundaries between ministries and departments and what is rather important to concentrate and to take under special control of administrative bodies and the President of the RF all material and financial resources of the country without exclusion.
The general plans, programs and a strategy of development in all fields of activities of the country shall be developed by the representative and executive bodies of power of the subjects of the RF jointly with the central apparatus of the State Council. They shall be approved by the President and shall be subject to full and unconditional execution by the RF Government, its working bodies – the state committees, ministries, departments and all representative and executive bodies of power of the subjects of the RF. Coordination of activity and control over execution of resolutions, approved by the President, shall be effected by the central apparatus of the State Council and the resolutions themselves shall be subject to implementation by the RF Government under the chairmanship of the first deputy of the Chairman of the State Council – the Head of the RF Government.

The most important place in the structure shall be allocated to economic, financial, banking, law-enforcement, control and supervisory bodies of the country. Creation of the Main State Treasury Department under the RF President as part of the Presidential Executive Office, and the Federal Reserve Bank of the RF will ensure jointly with the RF Ministry of Finance, Gochran, RF Central Bank, Vnesheconombank, Vneshtorgbank a direct control over expenditure of material and finance resources of the country. They will also enable to create under the state supervision credit and finance system, to reinstate and ensure financing on a deficit-free basis of the defense, industrial and law-enforcement complexes, to create new and upgrade old objects of industry and agriculture, to set in motion assets owned by the state treasury, to form secondary market of capitals, to provide security to attract the world financial and material resources and what is even more important to carry out restructuring of the Russian external debt using the world practice and the potential possibilities of the country.

- It has been a year since the election of a new Russian president, introduction of some changes in the structure of state control and formation of a new cabinet. A year is a very short time span, however for the president it accounts for a 1/4 of his time in power. Considering the state of affairs in the country and the main thing – dissolution of the bodies of state control underway since 1991, it is imperative to continue deep structural reforms, as they alone are capable to bring considerable results. What is your opinion of a new leadership of the country in light of the fact that President Putin presently is implementing plans and programs, some of which were worked out by you and your colleges seven years ago? Do you think it is realistic to hold the a.m. reforms over a limited time span considering that one year of Putin’s presidency has already elapsed?

- In response to this question I would like to point out that president Putin inherited a complicated situation: a practical absence of legislative base in the country, corruption in all echelons of power, criminalization of the state, organized crime and a powerful resistance to all positive undertakings. Vladimir Putin, however, has come to the big politics having behind himself a serious professional and life experience. Specific character of his former work enables to characterize him as a highly intellectual personality, disposing of an analythical turn of mind and a strong will. This means that he is capable to resolve not only immediate but also strategic tasks. It is this quality in my opinion that considerably distinguishes president Vladimir Putin from his predecessors, M. Gorbachev and B. Yeltsin.
I am sure that by reliance on the healthy forces of society, experienced and professional cadres and new organizational control structures he will manage to carry out reforms necessary for the country.
In conclusion I would like to congratulate all readers of the magazine on my behalf and my colleagues as well with the new 2001 year and a new millennium. I want to wish everyone peace, quiet, health and well-being, to feel warms and kindness of our land, named Russia.

On behalf of the editorial staff

Considering repeated appeals of the academician Peter L. Korotkevich with reference to the a.m. issues to the leadership of the country, the editorial staff considers it necessary to offer readers some excerpts out of his letters.

(An excerpt from a letter to President Vladimir Putin, dated June 12 2000)

«Dear Vladimir Vladimirovich!
I appeal to you personally and on behalf of my colleagues - big statesmen, creators and heads of a number of sectors of the industry, specialists in the field of state construction, organization and control, the people, disposing of personal authority both in Russia and abroad.
Situation in the country is extremely complicated. Directions, selected by you and a set of operative measures for structural reforms are absolutely correct but require first of all to attract for work professional cadres and specialists who are really capable to produce over a short time real balanced proposals, tied up to the general plans and terms, designed for execution of tasks set by you in respect to the all directions of the country’s development. There are such people in this country and they need to be attracted to resolve the tasks, which you set rightly and timely, underlining the main priorities. Without these people, however, I am sure you will not do anything and will only loose positions and the time.
Structural rebuilding of the country shall be carried out only under your direct leadership, which will enable in the shortest time to achieve positive and tangible results and to overcome a farce which has been on across the country.
We are ready to render You, Vladimir Vladimirovich, assistance and practical help in expedient resolution of the a.m. issues, to attract for work necessary specialists and to take respective powers to achieve the tasks set by you."

(An excerpt from a letter to President, Boris Yeltsin, dated June 19 2000)

«Dear Boris Nikolayevich!
Over the period of our joint work in 1991-1992, at our suggestions, you considered and taken decisions over the tasks of top importance, defining the place and position of the Russian state in the world system and remaining presently the most urgent. The tasks of the state construction, tackled by the President Vladimir Putin, of military, national and economic security, creation of a system of collective security, SOA-2 agreement etc. are a continuation of reforms initiated by you in 1991-1992.
Vladimir Putin makes a very good impression on my colleagues and me. He has a rather good training; he is capable, purposeful and disposes of all necessary qualities to resolve the problems, which have piled up in the country over many years.

Frankly speaking, I, being well aware of your temper, especially in respect to selection of cadres for which I used to disagree with you often enough, am happy now that you finally made a correct choice and I hope you were not mistaken to recommend V.Putin to the position of the President of the RF.
Let me point out that V. Putin needs a serious help. The tasks he has been resolving are rather complicated; they require special knowledge and can be implemented only if professionals with personal practical knowledge and big organizational experience in the management of the country be attracted for work. You are a man with a big life and political experience and only you will manage to unite all of us».

Of the file of Russian special services magazine «Security service. News of intelligence and counter intelligence», ¹5-6, 1998.

Peter L. Korotkevich is, one may say, a unique personality. He is an academician of the Russian academy of natural sciences, a statesman and a specialist in the field of theory and practice of fundamental, scientific and applied systems. Back in 1986, Peter Korotkevich with a group of scientists in order to foster development of the defense strategy and security of the country, stipulated by the resolutions of the Central Committee of the Communist Party and the Council of Ministers of the USSR, has put forward a scientifically-grounded concept of ground-, sea- and space-based nuclear strategic armaments capable to resist striking factors of anti-missile defense of a likely enemy. In November 1991 at his proposal a Council of Experts under the Government of the RF was set up to be subsequently transformed into an Expert Council under the President of the RF. Its task was to make all-round examinations of big socio-economic, scientific and technical, investment projects and proposals, relating to the problems of national security, defense policy, armaments programs, conversion etc. The Council of Experts incorporated big statesmen of the country, leading scientists and specialists, organizers of science and industry having big practical knowledge, experience in management and personal authority domestically and abroad. Boris Yeltsin with his decree appointed Peter L. Korotkevich as one of its chiefs.

At Peter L. Korotkevich’s proposals the leadership of the country has worked out and adopted decisions in the field of economy, nuclear security, basic and defense sectors of the industry. A number of new organizational structures were set up in the country, such as the State Technical Commission under the RF President, The State Committee for defense policy, defense industry and machine-building, the Ministry of Atomic Energy, special-purpose subdivisions to fight organized crime, economic offenses, illegal drug trafficking and terrorism in the Ministry of Security and the Ministry of the Interior of the RF. He also actively opposed dismissal of specialists and scientists of the RF Armed Forces and worked to preserve professors and lecturers of the higher educational institutions including those which were part of the Federal Security Service. He was also instrumental in suspending privatization of the Malishevskoye emerald field and Lenzoloto, the enterprises of defense and basic sectors of the industry etc. At his initiative international institutions were set up, such as a Committee for Conventional Problems of the Russian Federation and the Russian-Eurasian center of the Karnegy Trust for the world peace, by means of which ties and new types of partnership were established between the US and Russian politicians and business organizations. Peter L. Korotkevich created and became the President of Korben International Industrial and Financial Corporation. It worked out and received approval at the federal and republican levels for its “Capital increase” program, which was designed to create a base of material assets, to hold operations with securities at the world financial and stock markets in order to use part of the received profit for organization of production, creation of the processing enterprises to fill Russian domestic market with high-quality agricultural produce and mass consumption products, their marketing and subsequent capitalization of profits into assets.

Activities of Korben International are designed to strengthen financial, economic and industrial potential of Russia, and enable to attract off-budgetary funds to implement programs of social protection for military men and members of their families, creation of new working places and retraining former officers into civil professions. Considering social importance of this program, a set of measures to ensure security for the project was laid upon career officers of the state and public Fund “Guarantee”, which provides social guarantees for military men.
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© Korotkevich Peter Leonidovich