Vladimir Putin: Good afternoon. I wish to thank Mr Shmakov and Mr Zapesotsky for their invitation and all of you for today's meeting.

You will soon be celebrating an important occasion: on October 9 your University is turning 82. The University has come a long way and become a diversified institution of learning known not only in the union movement, but also in the whole country. It educates specialists in fields that are in great demand and that are very interesting. Mr Shmakov recently suggested that the University also train specialists for occupations that do not yet exist but are very important. The state should finance the education of specialists capable of working in conflict situations and solving social and labour conflicts.

The programmes we are drafting for the country's development are concerned with one general goal - innovation in development and innovation in the economy. Specialists in this field are needed badly here, too. I think we will accept this proposal of the unions and implement this programme.

In 2008-2011, we are planning to budget an additional 40 million roubles in grants. In 2008, we allocated 12 million.

Alexander Zapesotsky: But that is not enough.

Vladimir Putin: Of course, not.

Alexander Zapesotsky: [In conflicts], we should learn to come to terms, not to lock horns.

Vladimir Putin: Yes, of course. Now I would like to congratulate you on the approaching anniversary and wish you every success.

Alexander Zapesotsky: Thank you. We in turn want to wish you many happy returns on your birthday. It is a great joy for us that you have found time to visit our University on such a day. Any other day would also have done, but on this day it is a mark of special regard, and we appreciate it. We understand, of course, that by doing so you demonstrated your attention both to education and to the trade unions as an important social institution, and to civic responsibility. By inviting you, we wanted not only to show you the University, but also to discuss how we could help the state in the current drive to strengthen Russia.

Despite the festive mood we'd like to say a few words about some problems. Here is a document I wish to present to you, a document you are well informed of: a declaration of cultural rights drawn up under the direction of Dmitry Likhachev at our University. It is a kind of moral and spiritual testament left by him and still unfulfilled. You know, of course, that the first St Petersburg Mayor Anatoly Sobchak supported this project, this idea and even issued a special order.

As conceived by Mr Likhachev, Mr Sobchak and its drafters, the document, once approved by the country's leadership, was to have been forwarded to and accepted by UNESCO. But for some reason this has not yet happened. One reason is the name itself: it is called a declaration of cultural rights, and culture, as you know, is subject to law. Nevertheless this is a document of immense moral value. We think it could rank in human history alongside the Magna Carta adopted in England in the 13th century, or the well-known Declaration of Independence of another country. Our contribution could be a Declaration of Cultural Rights.

I think that if you, Mr Putin, supported this document as a rank-and-file citizen and head of a party that enjoys immense prestige, this could mean a lot for Russia. The declaration proclaims human rights in culture and for participation in cultural life as one of the major human rights. Mr Likhachev believed it was culture that made the human being a human being and my first impulse was to present the declaration to you.

I think it is time society embraced it too - morally, not formally.

Now, if you permit me, I would like to say a few words about the department we propose to set up to teach conflict resolution. This concept has been suggested by Mr Shmakov.

The mechanism of social partnership in Russia appears particularly important to us, because a social partnership is the most civilised form of resolving all contradictions and tensions in society. It is in fact a three-way dialogue between working people, entrepreneurs and the state. In addition, this approach has been tried and tested internationally, and has yielded very good results. It has also produced good results in this country. But now we can go further. And if you support us, we could work further on the problems existing in this respect and, most important, train the necessary personnel.

Here I would like to say a few words about the lead Russia is currently enjoying in the humanities. You know what Russia has done in the engineering and cultural fields. Now it is making a breakthrough in cultural studies. We have progressed a good deal. The techniques our scholars have devised offer new ways of preventing conflicts. They concern not only labour-capital conflicts, but also problems in migration where culturally distinct ethnicities often clash and where other conflicts are possible.

Vladimir Putin: This is particularly important now that cultures and nations are inter-penetrating each other and borders are in fact being minimised.

Alexander Zapesotsky: I would like to stress that the international readings we initiated with Mr Likhachev and have been conducting since 1991, as you decreed - when you supported us by issuing a decree commemorating his memory - are today practically a major global forum on the dialogue of cultures, a forum that is producing very worthwhile scientific results. Many institutes of the Academy of Sciences have joined in the effort, and we have made great strides, formulating methods for removing contradictions between cultures.

I would also have liked to mention some problems existing in our own work. But to wind up the subject of the department we are creating, I am sure that with your support this could be a very serious theoretical and a very serious practical breakthrough.

Mikhail Shmakov: We have the support of the State Duma, Mr Putin, because its committee on labour and social policy, which is also one of the sponsors of the concept, is the best venue in Russia for this kind of job.

Alexander Zapesotsky: I would like to mention several problems with our universities and their everyday life. Mr. Putin, I will not hide the fact that I repeatedly asked the advice of our faculty before today's conversation, so that a common opinion would match large-scale practical issues.

I have been prompted by others to formulate my questions in such a way that Mr. Putin could issue the relevant instructions that would be implemented.

But, you know, I got the idea that there were more important issues because we consider you an exacting and meticulous leader who can expand our system. Please forgive me for being so straightforward, but there are some major problems probably hindering the desired pace of the education system's development.

I want to mention the lack of support for ensuring the education system's development. The state is now doing a lot to support the Russian Education Academy, of which I am a member.

Academy members have no reason to complain about the lack of attention and ministerial support. As I see it, we must now take one more step and provide substantial support to the Academy's universities. Our university has done something it was not supposed to do because this lies in the realm of fundamental science.

Mr. Putin, we remember a time when the Communist system, which used to set specific educational standards, fell apart. Any university must be a pedagogical system and focus primarily on education, rather than economics.

At that time, the state and the scientific system failed to offer any educational standards, which are still lacking. Technically speaking, no pedagogical system can function properly if it lacks educational goals because specific formats, methods and other aspects depend on such goals. This entire complex will not evolve, unless there is a clear objective.

Although our University has formulated a goal, the way it was supposed to, this practice has not yet become widespread. The education system faces other similar problems. Consequently, we believe that it would be appropriate to strengthen the Academy's universities.

We do not receive any higher-education recommendations from anyone. Moreover, this country lacks a centre for assessing the scientific aspects of higher-education problems.

Vladimir Putin: Higher education is not the only problem. Secondary education is also plagued by numerous problems and lacks the required scientific support.

Alexander Zapesotsky: Mr. Putin, the situation with secondary education is slightly better.

Vladimir Putin: It is true that the latest teaching methods are not being compiled and used. I agree with Mr Zapesotsky.

Alexander Zapesotsky: Mr. Putin, I would like to discuss another problem. This is not a technical problem. It is not that someone has turned down our request or has offended us. In fact we maintain very good relations and a mutual understanding with the Education and Science Ministry. We believe that our Education and Science Minister is modern, dynamic and an extremely capable manager.

However, there is one problem rooted in the bureaucratic mentality. It is important that Russian leaders have created a vertical of power. But some of its side effects do not match a common concept. For instance, there are double standards concerning matters of state importance.

Vladimir Putin: Mr Zapesotsky is a very eloquent speaker (Laughter).

Alexander Zapesotsky: Are you hinting that I should stop?

Vladimir Putin: Not at all. Please continue.

Alexander Zapesotsky: If I approach Valentina Matviyenko, Ilya Klebanov or Andrei Fursenko, they will react adequately, the way state officials should. However, officials as a whole involved in the decision-making process believe that projects of state importance deserve support, while all other private projects should be brushed aside and tackled by their authors instead. We realise that such an approach is detrimental to education because a normal competitive environment has to be created.

I will cite two or three examples showing how this happens in real life and the consequences of this approach.

The state says it is committed to supporting education. We are very glad; and the whole nation realises the importance of this. However, our university is not listed among the 50 most innovative Russian universities. This is rather unusual because our university implements more positive and cost-effective innovation projects than all others. And I am prepared to prove this.

Moreover, the list does not include any private university. Education is supposed to be a high-priority national project lacking any departmental affiliation.

For instance, I want to mention state tenders for the allocation of subsidised student tuition and state contracts. As I have mentioned, we train multimedia directors. We have created the required curriculum, facilitating its introduction at state universities.

We have outpaced the best state universities (such as GITIS) by about seven years. However, we have received no student tuition subsidies, as all of them went to other universities. This skews education standards because we have ample training experience.

I would like to mention some rather surprising developments. Our university has a very a good lyceum that enrolls ordinary students, rather than the children of the influential, from all over Russia and other former Soviet republics.

After studying for 12 months, they begin winning all sorts of contests; and 25% of lyceum students win prizes at national or regional scientific Olympiads. Lyceum students are very good, and the quality of tuition is very high.

However, when we apply for lyceum grants, we are told that we have no right to take part in state tenders stipulated by the national education project, because our children belong to the Mikhail Shmakov's department (Chairman of the Federation of Independent Trade Unions). But these are all our Russian children, rather than Mikhail Shmakov's. (laughter)

Vladimir Putin: We won't be angry, if Mikhail Shmakov starts implementing the demographic programme.

Alexander Zapesotsky: He has a very good son; but this is an entirely different matter.

At the same time, we realise that no one needs our experience. Our private education system has accomplished many interesting projects. For instance, the cost-accounting mechanism functioned well for many years, including the 1990s when the state did not support our universities the way it does today.

But the state does not use our achievements. At the same time rectors of some universities come to learn and borrow our experience. In our opinion, we need an absolutely level playing field where the state supports everyone according to merit, rather than departmental affiliation.

The rectors of St Petersburg universities and the entire Russian pedagogical community believe that they must train students to be good citizens, improve their personalities and bring up patriots who will respect work and will possess traditional Russian moral-ethical values.

In this respect, television is our worst enemy and the enemy of education.

Mr. Putin, please don't think that I am one of those grumbling intellectuals who are displeased with what is put on television screens. Individual tastes are irrelevant. Just like any other media, television is a powerful tool. The media now has unprecedented influence, as it sets various behavioral standards.

Although my peers and I were subjected to a massive propaganda campaign in our younger days, the current brainwashing process is something unprecedented.

Teachers are unable to compete with television channels. Those advising TV audiences to switch channels are absolutely wrong because television influences human development.

Those who promote freedom of creativity are not right either because creative freedom and responsibility must go hand in hand. Any artist failing to assume responsibility in society and trying to influence the nation's spiritual image should not have any creative freedom, especially on state-backed Channel One (ORT) and Channel Two (VGTRK).

We have a hard time trying to influence young people whose moral standards are heavily influenced by television and run counter to normal Russian standards.

I want to say a few words about moral standards in general. Some countries are probably right when they don't allow the state to deal with moral standards. Instead, the state drafts legislation but relegates moral standards to society. This is a civilised way of addressing the issue of morals.

In my opinion, Russia is not yet ready to adopt this practice. See for yourself. Russian moral standards have been rolled back by several thousand years after the collapse of Communism and Communist ideology. We have found ourselves in a pagan era. Young people are being told that money and pleasures are the ultimate value, that work is something despicable, and that they must take advantage of the good life while they can.

For the last thousand years, Russia was a Christian country abiding by the Ten Commandments. After that, Russia received the Moral Code of the Builder of Communism, a set of twelve codified moral rules in the Soviet Union which every member of the Communist Party of the USSR and every Komsomol (Young Communist League) member was supposed to follow.

Now we have none. We tried to cooperate with the Russian Orthodox Church, opening the first new church in St Petersburg 15 years ago. But it turns out that the Church now lacks the required methods for dealing with the younger generation.

The state is shying away from this. Television is unrestrained and doing all it wants, while our grandmothers and grandfathers cannot cope with their youngsters. The situation is really involved. I think we should assess the Culture Ministry's functions. Should the Culture Ministry continue to do little more than manage and repair affiliated agencies at a time when Russia has not yet overcome the moral crisis of the 1990s?

We think that the Culture Ministry should formulate the state's cultural policies in general.

Naturally, a state that advocates freedom, democracy and publicity is in no mood to oversee the press. We and the press are ready to take advantage of the freedoms provided by the state and the media, primarily television.

It seems that we are ready for this. But is the state doing the right thing when it restricts the specialised ministry's work to just allotting broadcasting frequencies, but cares nothing about the rest, including the content of broadcasting?

Educators think this situation should be assessed rather seriously. Our efforts in education should be supported by state policy in forming the Russian spiritual and moral image. Society will probably mature some time in the future. Civil society institutions will be expanded, the press will receive more mature journalists and so on. Consequently, such regulation would no longer be essential.

I would like to stop here. And Mikhail Bobrov now wants to say a few words.

Vladimir Putin: If you don't mind, I would like to say a few words. Mr Zapesotsky mentioned innovative higher education institutions, state-sponsored contests, lyceums and grant problems. I have drawn a bottom line for myself. The state supports certain niches. This problem relates to the Government and regional authorities, as well. Each level of officials feels responsible for their own tasks. If it's an issue of federal responsibility, the Government says: "This is our primary task, whereas that one is for the regional authorities." But it is their responsibility, they shouldn't forget about it or pass it on to others. University of Trade Unions... Let Mr Shmakov think about how funds are allocated, and don't forget that he has this university.

But I agree with you that as regards universities and education, this is a separate issue, and there should be no hard line approach. So I would like to come back to what I said earlier: There should be no excessive bureaucratic departmental affiliation when the matter concerns lyceums, grants, universities, contests, and participation.

Mikhail Shmakov: Mr Putin, let's come to that. When grant contests are announced, state involvement is probably not quite correct. But support from non-governmental organizations is something different...

Vladimir Putin: I agree, here we should judge from the quality of the products submitted for contests. Here I totally agree with you.

As for television, we have repeatedly discussed what you have just said. I agree with many of the things mentioned today. I had a conversation with the writer Daniil Granin lately, and he voiced a similar opinion about television. Television is the teachers' enemy, or maybe it's the teachers' punishment for their own mistakes. Who brought up all those television producers?

We also should admit that in the last 15 years they lived in very hard conditions. Just as you charge for services, they also had to fight for survival, to earn their living. I think, by now, many of them are not that badly off any more. I mean the companies themselves, not their management. Certainly, they could change a lot of things, and some changes are already taking place. It wouldn't be fair to say that the management of TV channels ignores the developments going on in Russia, in our society. Although we criticize them a lot, I believe that they are responsible people, trying to change the current situation. You may not agree with me but we do provide them with substantial support.

Alexander Zapesotsky: I agree, the situation is changing.

Vladimir Putin: As for the situation with values and morality, the state cannot solve this problem alone. It used to be easier in the past. I have already said and I'm sure you know that in the Russian Empire, passports did not specify the holder's nationality, but they did specify his or her confession. If it said Orthodox Christian, nothing else about the person mattered for the Government. People were equal.

Later, in a Communist state, it didn't matter who you were if you were a party member. And in our more distant history, society had a universal system of values. I agree with you, that we haven't managed to find such a system for modern society. Although it certainly exists. It is patriotism in the best sense of the word. It was often underrated in the past as well, as some people failed to realize that when it is free of an ideology, it has certain advantage and value of its own. This attitude should be introduced in a talented and competent way in society's conscience. I reiterate: the state can't do it alone, we need to join efforts with psychologists, teachers, intellectuals and people of the arts and culture. We need to do this together.

How can we influence the mass media? We can't return to giving orders to the media, either electronic or printed media. Otherwise, Mr Zapesotsky, and I think you will agree with me, your statement would contradict what we said before, lamenting the negligence of bureaucrats. They are actually looking forward to having the opportunity to give orders to the media. If they are given sway, later we will have no idea how to go about changing it.

Alexander Zapesotsky: Maybe we should encourage it?

Vladimir Putin: You know, I think the state can easily influence this today, as now we have budget headroom. All we need is stop being greedy. We have been greedy until now, unfortunately. We will probably need a state order for television and the film industry, theatre and institutions of higher education in different fields related to ideology, values, ethics and moral education. A government contract could be a powerful means of influence in this area, as well as in others. It would be multidirectional work. As for television, which we have discussed at length, cinema, theatre and higher education, we should definitely work on these issues. I reiterate, however: We shouldn't confine ourselves to these means only, it's multidirectional work.

Mr Bobrov, please.

Mikhail Bobrov: Thank you, Mr President, today is a momentous event. Last time we met with you during the celebrations of our city's 300th anniversary, in Mariinsky Palace, when you were awarded the respected title of Honourary Citizen of St Petersburg. Much has happened since that time, eras have changed, a lot of water has passed under the bridge, and I should say that the country has been transformed; it changed drastically in qualitative terms. We are now respected in the world arena due to effective economic development. People are better-off. You can see it in the residents of St Petersburg, your city, my native city. Of course, much happens thanks to Valentina Matviyenko, our Mayor, she is a good manager. We see the city being transformed; it is getting more attractive, quality of life is improving. It is more than a city of museums; it has become an open city of vernissage, a pearl, and a magnet for foreign tourists. Against this background, as we put it, life has been easier, life is happier.

Without the things you do, without your help, none of it would have happened. We should emphasize that you now contribute much to the development of physical fitness and sports in this country. It's great. You promote a healthy way of life. We saw how hard you struggled to win the status of the Olympic venue for Sochi. We hope that Mrs Matviyenko's dream will come true, and some day St Petersburg will host a Summer Olympics. It is all great.

As an elderly person - I am 85 - working at this university, I should say that here we have a special aura. I get extra power like from a battery, from young people, students. It is very interesting to work with them. Here, you know, I have a special feeling... I have worked at many universities - but I have seen none so successful and fruitfully developing like this one.

Of course, you contributed much to it; I mean your help, energy. Thank you so much. Let me express gratitude on behalf of the entire faculty for the work you have carried out. On your birthday we would like to wish you all the best, health, happiness and well-being. Thank you very much.

Vladimir Putin: Thank you very much for your congratulation. Mr Gromadsky, please take the floor.

Roman Gromadsky: Sorry for interrupting you. I am Roman Gromadsky, head of the direction and acting technique department, the People's Artist of Russia.

Mr Putin, we are very happy that you have paid a visit to your native city on your birthday. Thank you for finding the time to come to our university to discuss, in this pleasant and relaxed atmosphere, the problems we face. I know that despite your birthday you are ready to take a tour of our city's major construction sites.

I am glad that you will chair a meeting today on a challenging issue - Russia's cinematography. And you are going to do it all on your birthday! (Laughs) Indeed, it is not an ordinary way of celebrating a birthday.

Vladimir Putin: No, it isn't. For example Mr Zapesotsky spoke about a holiday, but it is my personal holiday. Apart from that, today is Tuesday, a workday. Like Francis of Assisi, we should all "hoe our patch of land" every day. Then success is guaranteed. As for my visits to this city, I frequently come here; it's a kind of tradition, which is a true holiday for me.

You mentioned major construction sites. I am really pleased that to a large extent, thanks to the efforts applied, these construction sites are duly financed, including the circular road, the dam, and some other projects. It was evident that the city was in need of this support. A metropolis of five-million with such an intricate history and inadequate financing. Especially under the new circumstances financing clearly didn't match the city's needs. Without the federal centre's support, without federal funds, the city couldn't have coped with it. Without proper financing there could have been no circular road or any other modern communications here. The dam was falling to pieces. Last time I visited it during my time in office in St Petersburg, with a heavy heart, I saw it collapsing. When did we arrive at the decision to launch a new financing programme?

Valentina Matviyenko: In 2005. At that time you gave all the necessary instructions, the Government adopted a corresponding programme, and construction was finally launched. The dam is 30 years old. Construction was originally started in 1979.

Vladimir Putin: To cut it short, unless we made the decision to finish construction in 2005, it would have collapsed. This 30-year-old structure would have simply crumbled. And we need it, after all. Yesterday we noted that the floods in St Petersburg could be of different origin, including swells, piled-up water and other reasons. In general, the dam will manage to perform its protective function to some extent. It is very important to the city's budget and the people. There are also other projects.

I should say that even with the federal centre's support, if the work of the administration had not been organised properly, we wouldn't have reached such impressive results. And you know, I'm aware of the claims addresses to the administration of the city, I know its strong and weak points. I just don't expose them. We usually don't discuss this part of the administration's activity with Mrs Matviyenko. Nevertheless, I am unbiased when assessing the outcome, and I believe that much has been done in the city during the previous five years. It was done thanks to the governor's effective work. That is why, if we want to achieve good results, we need to combine the efforts of the Government, the local administration and ordinary people. We certainly need the local residents' support, at least the support for everything unconditionally positive. In this connection the support of St Petersburg's intelligentsia is crucial. Of course, we need debate and criticism - it is right. But criticism should not turn into a political campaign. Criticism should be for the sake of exposing and eradicating problems, not for its own sake. On the whole, I think such positive atmosphere has been created in the city, and I am very pleased with it.

Vladimir Derbin: Mr. Putin, as Head of the Federation of Trade Unions in St Petersburg, I would like to say that we are applying a stable social policy with the city. Today we coordinated a three-sided agreement between the Government, employers and trade unions for 2009. Such agreements are usually coordinated and concluded in January or February of the following year, but this year we managed to coordinate our positions in advance. Currently, we have no social issues which pose serious problems. The only problematic facility is the Kronshtadt Naval Repair Yard, but this is a federally-controlled facility. Unfortunately, the situation there...

Vladimir Putin: Is the plant breaking up?

Mikhail Shmakov: Yes, due to the uncoordinated actions of the related departments.

Vladimir Derbin: This is the only problem spot at the moment.

Mikhail Shmakov: We have prepared a letter to you on the subject, and I will pass it to you at the end of our meeting. I would like to add to what Mr. Derbin just said. The three-sided agreements are working in the regions. We have initiated a three-sided commission and three-sided agreements on the federal level, which will be implemented in Russia's regions. We have participated in a joint programme entitled ‘Dignified Labour' and have developed our own programme bearing the same name, while the United Russia party has a section in its programme entitled ‘For Dignified Labour' - so, we have initiated an international campaign named ‘For Dignified Labour' to support the idea. The programme, which targets the idea of dignified labour, is being competently executed. Similar activities are being implemented in the city of St Petersburg.

Vladimir Putin: This is exactly what I was talking about. It is clear that any power, any executive power both sets tasks and insists that they should be fulfilled. Certain obstacles and problems might arise in this regard, and I consider it a positive step that we have an ongoing dialogue with trade unions. The dialogue has been both difficult and efficient at the same time.

Overall, the members of the three-side commission are facing certain problems in their work, tensions, bottlenecks and acute disputes; still, joint efforts result in efficient solutions. And there are grounds for this work: despite the decreased number of industrial accidents, which have gone down twice in the past seven years, a quarter of all employees in Russia work in unfavourable and even harmful conditions. In this regard, it is necessary for both the Government and the trade unions to unite their efforts.

I do not to mention here the necessity to coordinate wage and pension payments issues, since you are well aware of this. The Government has adopted certain vital decisions concerning the provision of pensions, with Mr. Shmakov and his experts actively participating in the work. We have also made important decisions on changing wages for budget-dependent employees. This is important work that was impossible without the assistance of the trade unions, and we coordinated it in close dialogue with them. I think we have reached the optimal solution, though there are still certain questions. Different people have different approaches, but overall I consider the decision optimal and reasonable.

Mikhail Shmakov: Sure. Mr. Putin, this year we have adopted two very significant decisions, with wage reform for budget-dependent employees being the third. We legally sealed that the minimum wage shall not be lower than the cost of living. Now, it has become law. The second key decision includes the return to insurance of pensions, disability benefits and health. This is very important for the national economy which is something we have strived for and reached due to our constructive work and joint efforts.

Vladimir Putin: I should add that a considerable amount of time was put into these calculations. We met each week for six months for discussions. Experts were determining sources of financing, considering the effects on the national budget and tax sectors and taking into account demographic trends and the changing ratio between the country's employed and unemployed population. This is a very considerable amount of work.

Vladimir Derbin: Pensioners are trying to calculate their future incomes, for example a year from now, proceeding from the rule that retirement pensions should be at least 40% of an average salary.

Vladimir Putin: You know, for senior citizens, it may be even more important that we decided to add 1% per each year counting down from 1991. It is important because those people who have worked and earned their retirement benefits during Soviet times, now have an unacceptably low pension allowance.

Alexander Zhukov: We raise them 10% once, and then by 1% per each working year.

Vladimir Putin: Right, 10% once, and then 1% per each year. And the limit of 40%, we deliberately made it inflexible in the pension reform model. It's a European standard. We haven't reached it yet, but are working on it.

Alexander Zapesotsky: Mr Putin, the university students here have some questions.

Vladimir Putin: Fire away.

Question: Viktoria Teregulova, law student. I would like to continue discussing important government decisions and ask questions of particular interest to young people. Next year was declared the Year of the Youth in Russia, so my question is, what is the federal government doing to organise events under the project, and what can we, young people, do to help?

Vladimir Putin: We used to have heated debates while drafting national projects about what is critical and what isn't. Many of my colleagues believed we could do with an industry development plan. Give more attention to a specific industry, and that will put things right. But once we isolated several issues we considered of top priority, and drew public attention to them, and channeled the available administrative, political and financial resources there, even if it was not much - the effect was enormous.

Shipbuilders have this superstition about a boat's name determining her future. It is the same here, once we draw attention to a problem, positive changes begin happening, apparently of their own accord. Not just small changes - often quite significant ones. We plan to use this unusual effect deliberately this time. We have had the Year of the Family. Next year will be the Year of the Youth.

Demographic problems are among the most burning issues in Russia. They include healthy lifestyle advocacy, availability of education, timely, high quality and, with relevant qualifications, employment, availability of retraining and professional growth, and living in a beneficial cultural environment. We have many problems which concern young people in one way or another. So we decided we might as well draw attention to, and focus on, youth as the more general topic.

I don't think I should even mention our anti-alcohol and anti-drug efforts, which also have much to do with youth, because everyone knows that. We also have special housing programmes for young families. Now we'll bring all of that together within the Year of the Youth project.

I mean, there are general issues which also concern young people, and there are specific youth problems. How can the government handle them without help from you? No way. We will certainly try to involve young people in this work as much as possible.

Interjection: Thank you.

Question: Please, Mr Putin, I'm Ivan Shakhov, grad student, law school. I see that the government is largely using repressive measures to fight corruption. But wouldn't it be more effective to create a moral and psychological environment in the country which would see corruption as something indecent and immoral, a rare and grievous exception to the rule, rather than a normal everyday reality as it is now. Shouldn't we be making a greater emphasis on conscience, not fear?
You have mentioned ways in which the government and society could influence morals. Bribery and corruption are certainly immoral. What specific combined efforts do you think the government and civil society could make to overcome obstacles and improve morals?

Vladimir Putin: Mr Shakhov?

Shakhov: Yes.

Vladimir Putin: You go to law school?

Shakhov: Yes.

Vladimir Putin: Have you ever considered further education in an ecclesiastical academy?

(Laughter)

Shakhov: I would like to combine the two. I think a lawyer should also have a spiritual background.

Vladimir Putin: But I'm serious. You've just said you think law is less important than morals. I agree. I would also like to respond to some statements by Mr Zapesotsky here.

Law cannot be immoral. Law always upholds morals. This is where the government and civil society can pool their efforts. When obligatory behavioral standards become law - this is what I call cooperation. But formal cooperation is only one possibility, and there are many.

Mr Zapesotsky talked about the media, and about the different trends in the arts - in theater, music, and visual arts. They also help shape a civil society. Try to read some of Daniil Granin's works. In his books, he describes a lifestyle, a way of thinking. He talks about values, about what's right and what's wrong, good or bad. Books like these, authors like him shape our world outlook.

Civil society is not just a group of people. It relies on a solid moral basis, a solid foundation. One can obtain grants, call themselves a non-government organisation, and go squandering the money on personal needs, on travelling and staying in fancy hotels. Or, one can do something useful for society, for the country, without asking anyone for grants. One would argue with the government, while another would cooperate, all working toward a common goal. There are many areas for joint efforts.

Shakhov: Thank you.

Vladimir Putin: If you have more questions, go ahead, I will answer another one before we call it a day and go on working.

Alexander Zapesotsky: Maybe Mr Granin should say something, as an honorary doctor who is actively contributing to university life.

Damiil Granin: Mr Putin, please accept my warmest birthday greetings. Happy birthday!

Vladimir Putin: Thank you.

Damiil Granin: It's great that you were born here and still have important ties with our city. I would like to say it is good that the Parliament and Government have finally released an anti-corruption bill. It is of paramount importance. It means they have rallied their nerve and resources to launch a large crackdown on corruption.

I would also like to comment on something you have just said. Where do you think they educate young people to live a life of honesty? Where do they teach them integrity? Where do they teach family honour, gallantry, manners? These are things a young person should already have when starting adult life. These are also things which can only be absorbed when one is young, in high school at the latest. Later, it becomes more difficult. They should be taught and learned. They should be taken care of. Corruption is largely an effect, not the cause. The primary cause is that a person does not feel the need for honesty and conscience, does not feel required to uphold his/her honor and reputation. This is what I wanted to say.

Vladimir Putin: That was a wonderful finishing stroke. Thanks.

Alexander Zapesotsky: Please, Mr Putin, it's your birthday, but the protocol department specifically said no gifts...

Vladimir Putin: Right they were.

Alexander Zapesotsky: But we would like to, on behalf...

Vladimir Putin: An Anti-Corruption Year. (Laughs)

Alexander Zapesotsky: ...on behalf of our organising council, present you with this badge of an honorary professor of our University.

Vladimir Putin: Thank you.

(Applause)

Alexander Zapesotsky: You certainly have the qualities we like to see in our faculty.

Vladimir Putin: Thank you very much.

Alexander Zapesotsky: Thank you.