Question: In the early 2000s you outlined large-scale objectives aimed at helping Russia overcome the deep crisis that began during the Soviet period. Have they been met? If so, what are Russia’s development priorities for this decade?

Vladimir Putin: The scale of the tasks was directly proportionate to the problems Russia was facing at the beginning of the 21st century. We entered the new century after a default that spurred inflation growth and led to bankruptcies and unemployment. At least one-third of population fell below the poverty line. The system of state governance was experiencing serious problems. The authorities were ineffective, and the country looked like a group of principalities, each with its own laws and rules. At that time, a genuine civil war was under way in the North Caucasus, unleashed by terrorists who were supported by forces that sought to weaken Russia.

The situation called for decisive action. I am referring above all to the restoration of constitutional order, social guarantees, and the strengthening of state institutions. We have done all of that. We have literally brought the country together, restored its legal space and created a balanced system of state governance.

Over the past decade, we have ensured macroeconomic stability and the financial independence of the country. We have created an environment conducive to private business and investment. We have launched major initiatives in the social sphere, education, science and healthcare, and large projects in energy, transport infrastructure, mechanical engineering and construction. Russia now occupies a worthy place on the international stage, and we have established constructive relations with our partners, which is yielding considerable dividends.

Most importantly, we have ensured stability, which gives the nation confidence in tomorrow and makes it possible to make long-term plans.

Of course, we still have not resolved a number of major problems, some of them rooted in the past century. The biggest of them is our economy’s reliance on commodities. But we hope to resolve them, in particular within the long-term strategy for Russia’s socioeconomic development through 2020.

You probably know that we have started updating Strategy-2020 with the help of Russian and foreign experts, representatives of public organisations, government agencies and political parties, including United Russia. We need to update it to ensure that our long-term plans are as clearly drawn as possible and to reflect our present circumstances as well as the needs of the state and society.

The strategy outlines the development priorities for the next decade, which you have mentioned. They include the development of a competitive economy based on knowledge and high technology, and the final transition to an innovative and socially-oriented mode of development. We plan to ensure high safety standards for the people and free access to quality social services, to narrow the inequality gap among the regions, and to create new regional growth centres. We will lower administrative barriers while making state governance more effective. We will expand the freedom of enterprise, so that ultimately over 50% of the country’s population will be in the middle class.

Steady progress in these directions will allow us to maintain sustainable economic growth beyond 2020, which will provide a decent quality of life for our people.

Question: As in the past, Russia’s economy is still largely based on commodities. But commodities are the source of Russia’s economic prosperity. Is it possible that the endless talk about Russia’s addiction to oil is an attempt to discredit this source of our wellbeing? Petro-states like Norway are not embarrassed by their oil wealth. What will be the role of the fuel and energy industry in the country’s further development?

Vladimir Putin: It will play a key role. The fuel and energy industry currently accounts for some 50% of budget revenues in Russia. It does not primitively exploit our natural wealth, but is growing at a high rate, which gives a boost to related industries and several other sectors. It is upgrading production potential and introducing new technology and scientific achievements.

The fuel and energy industry is our strategic competitive advantage in global markets. It stands to reason that we should use what benefits us most and brings maximum profits at the given moment, especially since we do not devour this industry’s revenues but use them to fulfil future-oriented tasks, primarily those connected with economic diversification and intensive growth of processing plants.

Our colleagues in other countries are doing the same. The Arab countries, Australia and Norway have never acted on the assumption that the oil sector can satisfy all of the nation’s needs and ensure sustainable development on its own.

Of course, our traditional industries, and especially the fuel and energy industry, will continue to act as economic stabilisers for a long time yet. But in the future they may cede this role to other sectors, such as agriculture, mechanical engineering, pharmaceuticals and aircraft industry. These industries need high technology and innovations and can produce competitive goods with high added value.

Question: Don’t you think that, after solving high-priority problems in the past decade, we now need qualitative changes and some kind of a breakthrough in all spheres of the country’s life? Do we need a new ideological platform, a so-called national idea, in order to accomplish this? What should be its guiding principle?

Vladimir Putin: I get asked this question a lot. And I’ll give the same answer by quoting Alexander Solzhenitsyn who once said that “preserving the people” was Russia’s national idea. This phrase captures the main goal of modern Russia and all the ongoing transformation of its economy, social sphere, and its public and political life.

At the same time, I consider consistent development to be the key to realising this national idea. We should take pride in Russia’s thousand-year history, natural resources and cultural heritage. But we must move forward, no matter what. We must maintain competitive positions in all spheres, including technology, human capital, industrial production and the arts. Society, the government and the business community must work as a team. This is the only way to attain the qualitative breakthrough you mentioned.

Question: Russia has overcome the economic crisis with minimal losses. Certainly the government deserves credit for its targeted efforts. Can you say unequivocally whether the crisis was a boon or a curse for the country? Have you given up on the idea of doubling Russia’s GDP?

Vladimir Putin: The crisis isn’t something I look at as a boon or a curse. Crises are natural and inevitable. They come about when problems accumulate but they also make it possible to solve such problems. They expose problem areas and provide the incentive to change the situation.

The crisis reminded us once again that the Russian economy relies heavily on commodity exports and exposed weak spots in the financial market and in basic market institutions, and especially insufficient level of competition. Moreover, the crisis compelled us to refocus on goals set earlier, taking into account the new circumstances and opportunities.

Doubling the GDP is one such example. That was a strategic task at a certain stage of Russia’s history. We had nearly accomplished that objective in the run-up to the crisis. Preliminary estimates show this goal could have been achieved ahead of schedule by 2009, rather than 2010.

But the situation has changed. The crisis significantly altered our plans. Russia now prioritises qualitative, rather than quantitative, economic parameters and sustained innovation-based growth, which can be facilitated by more cost-effective production, including labour productivity.

We need more cost-effective budgetary spending and more effective state administration. We must improve our monetary policy with an eye to  developing anti-inflation measures and preventing future crisis scenarios.

If trying to give definitions to the crisis I would call it a test of our stability.

Yes, the government took a number of decisions that prevented social tension, the collapse of the banking system and a shutdown of production facilities. But this was not the main reason that Russia confidently overcame this period of global instability. Most importantly, the crisis was preceded by nine years of stable economic growth.

We had something to rely upon while we took action. Over the past few years, the Russian economy has matured, so to speak, and production facilities have become more viable. Accumulated financial reserves had proved a highly important asset. We used this substantial resource to meet social commitments, to stabilise the labour market, to implement investment plans, to support key sectors and to continue overhauling healthcare, education, housing and utilities and the budget.

You could call the crisis a lesson. Various measures, including anti-crisis measures, which have proven effective against the crisis, will find a place in Russia’s long-term development plans.

Question: Is Concept-2020 still the political foundation for Russia’s economic development? The document is once again being discussed by experts groups that include scholars, business leaders, and federal and regional government officials. What are their objectives? Will the goals stated in the Concept be revised? What specific results do you expect?

Vladimir Putin: The strategic goals set forth in Concept-2020 will remain unchanged. They include a steady improvement in Russians’ welfare and national security, rapid economic growth and innovation-based development, and a stronger international position.

At the same time, Russia, like other countries, needs to work out a new development model, which would take into account the post-crisis realities. For this purpose we have arranged expert discussions at the Higher School of Economics national research university and the Russian Academy of National Economy and Public Administration under the president.

Throughout this year, expert groups will prepare specific proposals that will help us meet our main goals of modernising the economy, improving social services and the state administration system, making federal spending more efficient, and providing enough opportunities for our people to achieve their potential.

Over a thousand academics from institutes and universities have participated, as well as representatives of independent expert organisations, federal bodies of government, businesses and public associations. Several important foreign experts have agreed to participate. We also expect to cooperate with leading experts at UNESCO and OECD.

More than a hundred discussions in various formats have taken place since mid-February – conferences, seminars and roundtables. The most significant events were the international forum Russia and the World: Searching for an Innovation Strategy and the 12^th International Academic Conference on Economic and Social Development Problems.

They have already had some tangible results. Some of the groups have started working on new bills. For example, the group discussing the labour market, professional training and migration policy has drafted a concept for Russia’s national migration policy, and the group on making government spending, state procurement and the federal contract system more effective has drafted a bill on the federal contract system.

Question: This year will mark the 20^th anniversary of the Soviet Union’s disintegration. Russia has been actively involved in post-Soviet integration projects, which often cost more than their potential benefits. Is Russia’s determination to pursue these integration policies rooted in its historical responsibility as the successor to the Soviet Union, or is it part of Russia’s new development strategy?

Vladimir Putin: It is also the 20^th anniversary of the Commonwealth of Independent States, which has played an important role in supporting geopolitical stability and forging new relations between the sovereign post-Soviet states, which have shared history, kinship and, most importantly, a common economic infrastructure.

Nothing has changed in this respect. On the contrary, the post-Soviet states have advanced new initiatives and invented new formats of cooperation. I am referring to the Collective Security Treaty Organisation, the Eurasian Economic Community, the Customs Union of Russia, Belarus and Kazakhstan and the Common Economic Space between these three countries, which is currently in the works. This integration project is the clearest evidence of the higher level and new quality of our partnership achieved thanks to the ongoing expansion of our cooperation. I am confident that the Common Economic Space will yield financial benefits, strengthen the ties between us and attract new members.

This development scenario within the CIS is absolutely logical. We are each other’s sources of investment and innovation, of human and intellectual resources. This gives us a good competitive edge.

Integration will ensure the CIS countries’ rational inclusion in the global economy. By combining our natural, technological and cultural resources, by effectively using our transport infrastructure, by working in close industrial cooperation and merging our markets, we will be able to achieve our modernisation goals faster and establish a niche in the global economy and the modern political system.

In this context, it is simply inappropriate to refer to Russia’s integration policies with regard to the former Soviet countries as a burdensome responsibility or to complain about the cost. It is natural that integration requires economic investment from each of the parties involved, the size of which depends on each country’s economic weight. But these investments will pay off. We all benefit from having friendly, stable and rapidly growing states along our borders. Relations with CIS partners are an absolute priority of Russia’s foreign policy.

Question: We’ve discussed integration in the post-Soviet space. But what kind of Russia do our Western partners want to see? Could it be that the frequent calls for integration into the global economy are somewhat hypocritical?

Vladimir Putin: You should ask our foreign partners what kind of Russia the West wants. But you are unlikely to get a straightforward answer – it will always depend on the level of Russia’s contacts with the country in question.

Many countries still operate on Cold War assumptions. I can’t say whether they are doing it consciously or not.  But I think this rhetoric should be abandoned once and for all; they all should realise that Russia is a country of vast opportunities, open to anyone seeking partnership and cooperation.

We are focused on the comprehensive modernisation of our country based on democratic values and institutions, as well as on the diversification and development of the economy based on innovation and high technology. We will naturally continue working on this, primarily for our country’s benefit. But we are also open to intensive international cooperation and the development of equal and mutually beneficial relations.

We have made a conscious decision to integrate with the global economy and its key institutions, which shows that we have a clear idea of all the advantages that come from more active integration in the global market and global economic alliances. In fact, Russia is not the only party to benefit from this. For example, Russia’s entry to the WTO will also help stabilise the global trade system.

Question: In 2009, you initiated the revival of the Russian Geographical Society, your new personal project. Why is it such a focus for you?

Vladimir Putin: I did not initiate the revival of the Russian Geographical Society (RGO), which was established in 1845 and which did not stop functioning for even one day, not even during the Great Patriotic War, when all similar organisations were forced to stop working. RGO specialists worked for victory in besieged Leningrad as they made maps of the “Road of Life.”

I was simply an active supporter of the idea of breathing new life into Russia’s oldest public associations. In the past few years, the society’ activities were under the radar, and this had to be changed.  The Russian Geographical Society is a colossal asset, which can and must be used to help Russia’s development.

First of all, the Russian Geographical Society is a national cultural and scientific asset. Hundreds of great names who, without exaggeration, created Russia are emblazoned in its history. We owe such initiatives as the exploration and exploitation of the Arctic, environmental protection, statistical, meteorological and ethnographic research to the Russian Geographical Society. We still successfully utilise the foundations laid in the past.

Second, the Russian Geographical Society has impressive potential to consolidate society around such important values as patriotism, tolerance, the continuity of traditions and generations, as well as a frugal attitude towards nature. It can exert a tremendous influence on the formation and development of national self-awareness and unleash the creative energy of the people. This is particularly important for the younger generation, a highly important aspect of the society’s work.

I would like to stress that the Russian Geographical Society’s new mission to inspire people to love Russia. This is more than just a nice slogan. It is backed up by hundreds of projects providing accurate information about Russia, its ethnic and cultural diversity, and its history, present and future prospects.

Considering these and many other positive aspects of the Russian Geographical Society, I do my best to facilitate its work and to take part in projects, primarily those involving environmental protection.

Question: Our magazine is called VIP-Premier. You tour the country and meet with people all the time. Do you feel like a VIP Prime Minister?

Vladimir Putin: I feel more like a workhorse than a VIP. This is particularly true during my trips around Russia. I have to concentrate on specific tasks being discussed at conferences, meetings and commissions, as well as on questions asked by people at meetings, on their personal problems and requests.

I have never thought about my high status as prime minister. For me, this is a job with tremendous resources, which allows me to do real good for the country and for people.