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Medvedev calls for economy reform Medvedev calls for economy reform
(20 minutes later)
Russian President Dmitry Medvedev has called for profound reform of the economy in his annual state of the nation address.Russian President Dmitry Medvedev has called for profound reform of the economy in his annual state of the nation address.
The Soviet model was no longer working, he said, and modernisation based on "institutions of democracy" was needed. The Soviet model no longer worked, he said, and Russia's survival depended on rapid modernisation based on democratic institutions.
Russia could not blame external factors for the economic crisis, he added. An oil and gas-based economy had to be reworked with hi-tech investments.
The nation had to shift from its oil and gas-based economy and raise Russia to a "new, higher level of civilisation". Inefficient state giants should be overhauled and issues of accountability and transparency addressed, he said.
"Instead of a primitive economy based on raw materials, we shall create a smart economy, producing unique knowledge, new goods and technologies, goods and technologies useful for people," he said. "Instead of a primitive economy based on raw materials, we shall create a smart economy, producing unique knowledge, new goods and technologies, goods and technologies useful for people," Mr Medvedev said.
Modern and open
"Instead of an archaic society, in which leaders think and decide for everybody, we shall become a society of intelligent, free and responsible people.""Instead of an archaic society, in which leaders think and decide for everybody, we shall become a society of intelligent, free and responsible people."
'More transparent'
A year ago, in his first such address, Mr Medvedev made a surprise announcement about deploying missiles close to Poland.A year ago, in his first such address, Mr Medvedev made a surprise announcement about deploying missiles close to Poland.
This time the focus was on transforming Russia into a more modern and open country by introducing sweeping reforms. This time the focus was on transforming Russia into a more modern and open country, by introducing sweeping reforms.
Government had to become more transparent, he said, and issues of corruption and accountability had to be addressed. We need to launch modernisation of the entire industrial base Dmitry Medvedev
Giant state conglomerates had to be overhauled and investment increased in areas such as information technology and telecommunications. More than one million Russians were at risk of losing their jobs, he said, and pressing social issues needed to be addressed.
Putin's shadow
Over one million Russians were at risk of losing their jobs, he said, and pressing social issues needed to be addressed.
"We can't wait any longer. We need to launch modernisation of the entire industrial base. Our nation's survival in the modern world will depend on that," Mr Medvedev said."We can't wait any longer. We need to launch modernisation of the entire industrial base. Our nation's survival in the modern world will depend on that," Mr Medvedev said.
The BBC's Richard Galpin, in Moscow, says that there is much in this which implies deep criticism of Mr Medvedev's mentor and predecessor Vladimir Putin, who is now prime minister. Government had to become more transparent, he said, and corruption should be punished. The giant state companies created by his predecessor, Vladimir Putin, had "no future", he said.
The president is keen to prove he is his own man and has his own identity as a political leader rather than remaining in Mr Putin's shadow. "Inefficient enterprises must go through the bankruptcy proceedings or leave the market," he said. "We won't be protecting them forever."
Mr Medvedev promised to strengthen democratic institutions but warned that any attempts to disrupt national stability with "democratic slogans" would be stopped.
"Freedom means responsibility and I hope everyone understands that," he said.
And he promised a pragmatic foreign policy that would focus on improving Russians' living standards.
Putin's shadow
The Russian president gave a bleak assessment of the current situation and issued a clarion call for change, reports the BBC's Richard Galpin in Moscow.
There was much in the speech that implied deep criticism of Mr Putin, who is now prime minister.
The president is keen to prove he is his own man and has his own identity as a political leader, rather than remaining under Mr Putin's shadow.
But the question is whether the president can deliver on his pledges and bring about real significant political and economic reform, our correspondent adds.But the question is whether the president can deliver on his pledges and bring about real significant political and economic reform, our correspondent adds.
Are you in Russia? What is your reaction to President Medvedev's address? Send us your comments using the form below.Are you in Russia? What is your reaction to President Medvedev's address? Send us your comments using the form below.
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