E leadership change in Moscow - Mr Dmitry Medvedev taking over as President and Mr Vladimir Putin becoming Prime Minister - just might permit Russia to correct problems at home and expand its growing influence abroad. Mr Medvedev pledged to continue with the course set which, the former president said, 'has justified itself'. But continuity need not mean absence of change. Mr Medvedev will have to assert himself to the extent possible under the Constitution. He has pointed out that, as President, he is commander- in-chief and he appoints key ministers. Most notably, he can dismiss the prime minister. In all probability, Mr Putin's raising of Russia's stock and his high standing with the people will mean he will continue to make the big policy decisions. But Mr Medvedev still has sufficient authority and room to manoeuvre to not end up a figurehead President.
Mr Putin turns over to his successor a much stronger and richer Russia than the nation he inherited from Mr Boris Yeltsin eight years ago. That was when the rouble had all but collapsed, a few oligarchs enriched themselves in the privatisation wave, and separatists and government forces were locked in ferocious combat in Chechnya. Annual growth averaged 7.5 per cent during Mr Putin's term. A US$150 billion stabilisation fund replaced massive debts. The trade surplus stood at US$72.5 billion last year. The stock market index rose nearly 20-fold since 2000. Mr Putin returned Chechnya to relative security, though at some cost to his moral stature. Old and new difficulties, however, will confront Mr Medvedev. He will need all of Mr Putin's support and goodwill to go after corrupt officials. Among them are Putin supporters brought in to control the oligarchs, but many of whom now run kickback rackets, throttling business enterprise and bloating the bureaucracy.
Mr Medvedev will need to steer the economy towards not just continuing growth but diversification and less reliance on energy resources. Much more of the oil and gas revenues need to go to infrastructure and rural development. He will have to tame inflation, nearly 12 per cent last year. One in five Russians lives below the poverty line; mortality and illness rates are high by the standards of Europe. He will need to uplift the lot of the poor to win his spurs early. He has a chance to build domestic credibility by fulfilling his inaugural promise of 'civil and economic freedoms'. With his assertive stance, Mr Putin got the United States and its allies to pay serious attention to Russia's interests. If the country continues to grow and improve in its social indices under Mr Medvedev, it will make for a more stable world.
