The Manila Times Internet Edition

As I come to the end of this second term of office as President of the Russian Federation I think that I should speak about what has been accomplished over these last years and set out our long-term vision of the future.

The country was in a very difficult situation eight years ago. Wealthy Russia had become a land of impoverished people.

It was in these conditions that we began to draft and implement our plan, our plan to extract Russia from this systemic crisis. Above all, we began work on restoring constitutional order, restoring people’s basic social guarantees, and strengthening the state institutions. Through considerable efforts we succeeded in ending the war in the North Caucasus. Separatism retreated and although terrorism remains an acute threat, we dealt it a decisive and crushing blow.

We have re-established a common legal space in the country. Now we can state with assurance that the time when people’s political rights were ignored was over.

Russia has returned to the world stage as a strong state, a country that other heed and that can stand up for itself. Over these late eight years total investment in the Russian economy has grown not by percentage points but has risen seven-folds. In 2007, we had record capital inflow of $82.3 billion. The stock market was worth $60 billion at the end of 1999, but by the end of 2007, it had risen to $1.330 trillion. Russia’s foreign trade turnover has increased more than five-fold. More than 6 million Russian citizens go abroad every year. Last year, we had our best GDP growth result yet—8.1 percent. According to the figures for 2007 (according to international experts’ data), Russia is ahead of G8 countries such as Italy and France in terms of GDP as calculated on a purchasing parity basis, and is now one of the world’s seven biggest economies. The state foreign debt has shrunk to 3 percent of GDP—one of the lowest ratios in the world.

Overall, we have established macroeconomic stability and ensured our country’s financial independence. Real incomes have undergone a 2.5-fold increase these last eight years. Unemployment and the level of poverty have undergone a more than two-fold decrease. The birth rate grew faster last year than at any time in the last 25 years.

The selection of Sochi to host the 2014 Winter Olympics is confirmation not only of our sports and economic achievements but also of Russia’s growing international influence.

Our biggest achievement is the stability that enables us to make our plans, calmly go about our work and start our families. People once more have confidence that life will continue to change for the better.

Still we cannot rest on our laurels and become complacent. We are here today to discuss our long-term strategy that will take us through 2020. This is a most important choice for our society, the choice of direction our country’s future development will take us. We have still not yet succeeded in breaking away from the inertia of development based on energy resources and commodities. We are still only making fragmentary attempts to modernize our economy. The only real alternative to this scenario is to follow a path of innovation. The pace of innovative development must be substantially faster than it is today. Russia must become the country offering the best life.

Human development is the main goal and essential condition for progress in modern society. This is our absolute national priority now and in the future. Developing the national education system is a key part.

I think that we will succeed in stabilizing the population over the coming 3-4 years. We need to do everything in our power to bring about more than 1.5-fold reduction in the death rate, and to raise the average life expectancy to 75 years by 2020. I think that the middle class should make up at least 60 percent and perhaps even 70 percent of our society by 2020.

We need to begin closing the income gap right now. The 15-fold income gap that we currently have is unacceptable. The main sectors of the Russia economy need to achieve at least a four-fold increase in labor productivity over the next 12 years.

We need to concentrate our efforts on resolving three key problems. First: give everyone equal opportunities. Second: create the motivation of innovative behavior. Third: radically increase the economy’s effectiveness, above all through raising labor productivity.

The desire of millions of our citizens for individual freedom and social justice is what defines the future of Russia’s political system. The democratic state should become an effective instrument for civil society’s self-organization.

Continued tomorrow

This is work that will unfold over a period of years, work that will continue with the help of educational activity and the cultivation of a culture of civic spirit. Raising the role of nongovernmental organizations, human rights ombudsmen and public councils will contribute to this work, as will the development of a multiparty system in Russia. Russia’s political system must not only be in accordance with our national political culture.

I cannot but say a few words about Russia’s security and defense capability, and also about our foreign policy strategy. It is now clear that the world has entered a new spiral in the arms race. We have complied strictly with our obligations over these last decades and are fulfilling all of our obligations under the international security agreements. But our NATO partners have not ratified certain agreements, are not fulfilling their obligations, but nevertheless demand continued unilateral compliance from us. NATO itself is expanding and is bringing its military infrastructure ever closer to our borders. We are told that these actions are not directed against Russia, but we have received no constructive responses to our completely legitimate concerns. We have still not seen any real steps to look for comprise. We are effectively being forced into a situation where we have to take measures in response, where we have no choice but to make the necessary decisions.

Overall, strengthening our national security requires a new strategy for developing the Armed Forces through to 2020, a strategy that takes into account the challenges and threats to our country’s interests today. Today’s world is not becoming any simpler. On the contrary, it is becoming ever more complicated and tougher. A fierce battle for resources is unfolding. The result is that we are running up against repeats of the old “deterrence” policy more and more often. But what this usually boils down to, essential to remain steadfast and firm in such a situation, to avoid being drawn into costly confrontation or a new arms race that would be destructive for our economy and disastrous for our country’s domestic development.

Our choice is clear. Russia is a reliable partner for the entire international community in resolving global problems. We are interested in mutually beneficial cooperation in all areas—in security, science, energy, and in tackling climate change. If we want to achieve our national goals we need a peaceful and positive international relations agenda. And we will pursue this course. I am certain that an independent, pragmatic and responsible policy will enable Russia to strengthen its international authority as a reliable and honest partner. I am absolutely convinced that our country will succeed in consolidating its position as one of the world leaders and that our citizens will live decent lives.

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