Mikhail Kasyanov
Mikhail Mikhailovich Kasyanov is a Russian politician who served as Prime Minister of Russia from 2000 to 2004. Previously, he had served as First Deputy Prime Minister in 2000 and Minister of Finance from 1999 to 2000. During the 1990s, he worked in President Boris Yeltsin's administration in different positions before joining President Vladimir Putin's first administration. He has the federal state civilian service rank of 1st class Active State Councillor of the Russian Federation.
Since leaving the government over disagreements on economic policy in 2004, he has become one of the leading critics of President Putin and an opposition leader. In 2008, Kasyanov was a candidate in the election of President of Russia but in the middle of the campaign was denied participation on political grounds. In 2010, he co-founded the coalition People's Freedom Party "For Russia without Lawlessness and Corruption" and became one of the leaders of the People's Freedom Party.
He was an active speaker during the 2011–2013 Russian protests for fair elections. Since 2015, he has served as the leader of the political party People's Freedom Party. From 2005 to 2007, he was one of the leaders of the opposition coalition The Other Russia and democratic protest movement.
Early life
Kasyanov was born on 8 December 1957 in the settlement of Solntsevo near Moscow. His father was a teacher of mathematics and the headmaster of a local school. Joining the Red Army, his father participated in some major actions of the Second World War and fought until the victory in 1945.Kasyanov's mother was an economist, a head of a department of a governmental construction company. In his childhood Mikhail studied at a music school and played the cello. In high school he played in a rock group. In 1974 Kasyanov entered the Moscow Automobile and Road Construction University.
In 1976–1978, Kasyanov served in the Soviet Army in the guard of honour at the Office of the Commandant of Moscow, which is today the Kremlin Regiment of the Federal Protective Service. From 19781981, he became a technician and then an engineer at the scientific institute of the State Committee for Construction of USSR. At the time he was still studying at the Moscow Automobile and Road Construction University. He finished in 1981.
For nine years after graduation Kasyanov worked at the State Planning Committee as an engineer, economist, leading specialist and chief of sector. In 1987 he was awarded the diploma of the Highest Economy Courses at GosPlan.
Career
Ministry of Economy (1990–1993)
In 1990–1993, Kasyanov was working in the State Committee of Economy of the Russian Federation and then in the Ministry of Economy. In 1993 the Minister of Finance Boris Fyodorov invited Kasyanov to join the Ministry. He was appointed the head of Foreign Loans and External Debt Department.Ministry then Minister of Finance (1995–1999)
In 1995 Kasyanov became the deputy Minister of Finance.In 1994–1996, Kasyanov was occupied with the restructuring of Soviet externals debts. In 1996 Kasyanov reached an agreement with the Paris Club and the London Club of creditors for a comprehensive restructuring of Soviet debts for a period of 25 years with a 7-year grace period. Thanks to this agreement Russia was able to gain access to international capital markets.
In 1996, Kasyanov gave the road show of Russia's economy development prospects at International finance centers. As a result, Russia, for the first time since 1913 issued securities, eurobonds on the capital markets of Europe and the United States, and Russian banks and companies were able to take cheap foreign capital for investments into the economy of the country.
The 1997 Asian financial crisis and the 1998 Russian financial crisis led to Russia defaulting on its debts, and the ruble was dramatically devaluated. Kasyanov was the head of the working team for restructuring Russian government external debts and of the private banks of the country. At the same time he negotiated with Russian creditors for restructuring domestic debts. Kasyanov negotiated with the International Monetary Fund which granted favorable perspectives for reaching profitable agreements for Russia. As a result of this, the ruble rate was stabilised, which in its own turn helped reduce the inflation and restored production and services parts of Russian economy. These successes proved Kasyanov to be a good negotiator: he was called "the principal financial diplomat of the country".
Minister of Finance (1999–2000)
In February 1999 he was appointed First Deputy Minister and in May 1999 President Yeltsin appointed Kasyanov Minister of Finance of the Russian Federation.In June 1999, Minister Kasyanov became a member of the Security Council of Russia.
Kasyanov was occupied with the problem of budget deficit and external debt. His time as Finance Minister saw Russia's first non-deficit budget. In July Russia received the first post-crisis loan from the IMF.
The government of Sergei Stepashin worked for three months; however, Kasyanov retained his post in the new government of Vladimir Putin. He continued the negotiations with international creditors on a global restructuring of the USSR's debts.
The war in Chechnya provoked the suspension of the negotiations with the London club of creditors. Nevertheless, Kasyanov was able to resolve the principal problems of Russian debts in a span of several months. This fact facilitated the transition towards economic growth in Russia. As a result of non-deficit budget and prudent financial policy in general the multi-month delays in salary payments and pensions were overcome. On 10 January 2000 Kasyanov was appointed the first Vice Premier of the Russian government. The situation was such that effectively Kasyanov was in charge of the government, serving as its chairman, as Putin was the Acting President at the time. He was still the head of the Ministry of Finance.
Prime Minister (2000–2004)
On 17 May 2000, Russian State Duma approved Mikhail Kasyanov's Prime Minister candidacy. The Chairman of the Cabinet started pursuing the policy of active collaboration with business community and civil society.During its four-year term Kasyanov's Cabinet launched a number of structural reforms – tax and budget reform, liberalization of capital control and external trade, customs reform, reorganization of national infrastructure, pension reform, creation of land market and others. Successful implementation of systemic transformation measures led Russia to a trajectory of sustainable economic growth. Inflation was reduced significantly, the economy and people's income grew by one third while oil prices were at the level of $20–25 per barrel.
Experts think that the tax reform of 2000-2002 was one of the most successful reforms of Kasyanov's Cabinet. A flat income tax rate was introduced. All turnover taxes were eliminated. VAT was reduced to 18% and social taxes — to 26%. These measures together with the policy of strong fiscal discipline significantly increased budget revenue.
In 2003, Kasyanov's Cabinet reformed the taxation of petroleum sector and established a special Stabilization fund. As a result, the budget revenue stream from this sector has increased and the Stabilization Fund has started accumulating significant amounts of foreign exchange, creating a financial airbag for the country. It was a time of an overall financial liberalization.
An important achievement of Kasyanov's Cabinet was the successful implementation of the small business encouragement policy. Introduction of simplified taxation system, easy state registration of businesses and ban on frequent inspections by state agencies were among those measures.
It was during Mikhail Kasyanov's time as Russian Prime Minister that the transfer of agricultural lands to private property began. Additionally to that credit support mechanism for agricultural production was introduced and Russia very rapidly again became one of the leading exporters of grain after decades of huge annual import of wheat.
Kasyanov was dismissed, along with the entire Russian cabinet, by President Vladimir Putin on 24 February 2004 after more than three years in office, two weeks before the 2004 Russian presidential election on 14 March. There were disagreements between Kasyanov and Putin on matters of policy. The President stated on national television "This decision bears no relation to any assessment of the performance of the former composition of the government. It was dictated by my desire to once again delineate my position on the issue of what development course the country will take after March 14, 2004."
Political activity after resignation
After leaving the government (2004–2008)
On the first anniversary of his dismissal Kasyanov gave a press conference at which he said that he might run for president in the 2008 elections. His bid was supported by Leonid Nevzlin, Boris Berezovsky and Garry Kasparov.In April 2006, Mikhail Kasyanov was elected Chairman of the People's Democratic Union, a newly launched NGO. PDU was one of the co-founders of the first "The Other Russia" conference in July 2006 and of "The Other Russia" coalition that was set up at the conference. Kasyanov and the PDU were actively involved in the coalition's work and took part in the Dissenters' Marches in Moscow and St. Petersburg – the first protest manifestations in many years. On 3 March 2007, Kasparov and Kasyanov spoke against Putin's government to thousands of supporters at the Saint Petersburg Dissenters' March.
At a presentation in International Institute for Strategic Studies 26 June 2006, Kasyanov criticized Putin's administration. He said:
"Separation of powers has been effectively demolished and replaced by the so-called ‘Vertical of Power' which is based on the false idea that all the meaningful social and political processes must be kept under control by the state. The government and parliament cannot function any longer without daily instructions. The judiciary is increasingly servile. Independent TV does not exist any more at the federal level and is being quickly uprooted in the regions. Moreover, the state-owned companies and the state itself increase their grip over the electronic and printed media. Responsibility of the regional level of power is totally destroyed by the abolishment of direct elections for the governors."
PDU had regional branches in 75 regions of Russia. In June 2007 Kasyanov was nominated by the PDU as a candidate for the presidential elections. In September 2007 the new political party People for Democracy and Justice was established on the basis of the PDU, and Kasyanov was elected its chairman.