Medvedev's reforms

While Medvedvev pushed for reforms that would transform Russia into a modern, democratic and economically diverse nation, he was careful to emphasize that the stability of the state remained the first priority.

"In the 21st century, our country again requires modernization in all areas, and this will be the first time in our history when modernization will be based on the values and institutions of democracy," he told an audience of about 1,000 political leaders in the Kremlin's ornate St. George Hall. He warned, however, that "any attempts to rock the boat, destabilize the government and rend society under slogans of democracy will be stopped."

With Vladimir Putin, the country's current prime minister, sitting in the front row, the speech was closely watched for signs Medvedev was moving away from the governing philosophy of his predecessor. While Forbes lists Putin third on its list of the world's most powerful people, Medvedev is only ranked 43rd.

Medvedev also pushed for an end to the paternalism that characterized the Soviet Union. "Instead of an archaic society in which leaders make all the decisions and rules, a society of intelligent, free and responsible people will emerge," he said.

His proposals included consolidating Russia's 11 time zones, moving away from a dependence on natural resources such as oil and gas, and reducing the state role in the economy. He criticized the government-run corporations that saw a resurgence under Putin, saying such companies "have no future." He added that "inefficient companies must be liquidated." Competitiveness in the Russian economy is "shamefully low," he said.

hf/AFP/dpa
Editor: Susan Houlton