Economic Reform Conference

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# NATIONAL AFFAIRS

# Economic Reform Conference

## Abalkin Answers Questions on Economic Conference LD1711235989

[Editorial Report] Moscow Television Service in Russian at 1903 GMT on 17 November carries a 37-minute recording of a news conference held on 15 November with Leonid Abalkin, deputy chairman of the USSR Council of Ministers, on the conclusion of the scientific and practical conference held in Moscow to discuss Soviet economic reform. Video shows Abalkin on rostrum. An unidentified chairman opens the news conference:

Urgent measures, Abalkin says, must be taken to implement economic reform, and these measures must be drawn up before the Congress. Taking part in the conference were experts in all fields, to discuss as openly as possible, with all possible opinions represented, a nationwide program to take into account of all shades of opinion. The program must be realistic, comprehensive, and bold. The conference yielded a great deal of material over the 3 days it was held.

"Esteemed ladies and gentlemen, we have invited you to a meeting in connection with the conclusion of the all-union scientific and practical conference on radical economic reform. This conference opened on Monday and ended today in the Hall of Columns of the House of the Unions." "Today Academician Leonid Ivanovich Abalkin, deputy chairman of the USSR Council of Ministers, will share his impressions on the conference with you."

Abalkin says one main issue is how to move from a nonmarket economy to a market economy, how to create the infrastructure. The program is based upon a critical evaluation of past experience, both in the USSR and abroad; a scientific and theoretical analysis was also made. All this went into the proposals advanced.

The first question is from a TASS correspondent who asks about the basis for the theory of the transitional period.

ABTA correspondent asks about consensus on the issues discussed and on approaches to republican financial autonomy.

Abalkin says consensus is impossible in such cases: Full agreement would mean stagnation in thinking. All aspects must be weighed and conclusions reached. Agreement on the basic fundamentals was, however, attained: Without reform, we have an impasse. Consensus in the sense of an understanding of the responsibility of the decisions to be made was thus reached. Financial autonomy must be introduced in the republics from 1990, which leaves very little time. Huge price changes are impossible, but we are compelled to take interim measures to compensate until full measures are implemented. The source of republican budgets have

been precisely defined, and further measures amendments can be made in 1991 when other rep move to financial autonomy.

The FINANCIAL TIMES correspondent, speaking english with superimposed Russian translation, asked question from the FINANCIAL TIMES: Could you as what specific changes must be made in your economic program as a result of the conference? It seemed so that the reaction to your program was pretty dis pointing. Do you agree with that assessment?"

Abalkin responds: "The conference yielded no fundamental changes, no rejections of any directions or stages of reform. Conservative moods, however, turned out to be stronger than I had assumed before the conference started. This perhaps reflects the general changes in the social situation in the country, which is today substantially different from the situation in the summer, the summer of this year. This must be taken into account this complex development of events: One cannot simply brush it aside, one must be ready for it.

"I cannot as yet fully evaluate what was done in the sections—work went on in eight sections, four round tables, and over 200 people spoke—all this must be looked at attentively, some interesting ideas, and amplifications may evidently be found there. And only then will it be possible to evaluate fully the quality of the discussions."

A Portuguese correspondent asks whether public opinion might oppose the changes needed to emerge from impasse. The correspondent also asks what will be the role of the congress.

Abalkin responds that public opinion is vital; attempts have been made to play with public opinion and manipulate it. Public opinion must be mobilized—it is awaiting constructive measures and decisions. The congress will certainly be very turbulent and contradictory. We must learn to listen and heed one another, we must overcome social "deafness."

An Italian correspondent asks in English about opposition in society to private ownership.

Abalkin says the law on ownership, like the law on taxation must be submitted for nationwide discussion. As an economist, Abalkin says that it is very common for terms to be misunderstood, terminology is a source of misunderstanding and therefore of tension. Terms such as private ownership and cooperatives have been interpreted in different ways, giving rise to unnecessary polemic. We must not try to put over new thinking in the old terminology of the 19th Century.

An EL PAIS correspondent, in Russian, asks: "The newspaper EL PAIS, Spain. I should like to learn about ruble convertibility—that is one point; then also about a system of rationing, and third, parallel money—chervonets."

Approved for Release

Date AUG 1991