Russian President Wants to Shake Up 'Humiliating' Soviet Style Economy

MOSCOW Nov. 12, 2009— -- Russian President Dmitry Medvedev addressed a joint session of parliament today in a lengthy state-of-the-nation speech that centered on his vision for the economic modernization he says Russia desperately needs.

He described the economy's Soviet-style reliance on the country's vast natural resources as "humiliating," and called for efforts to focus on high tech innovation in energy, medicine, telecommunication and space.

"We haven't managed to get rid of the primitive structure of our economy," he told parliamentarians and officials at the Kremlin. "It's a question of our survival in the modern world."

"The nation's prestige and welfare can't depend forever on the achievements of the past."

As he has done in the past, Medvedev railed against corruption as a principle obstacle to modernization. Time behind bars for corrupt officials is not a cure-all, he said, "but you must sling them into jail anyway."

Proving he meant business, he said over 500 government officials have been prosecuted and more than 700 in law enforcement were convicted of corruption in the first six months of this year.

Prime Minister Vladimir Putin's party swept regional elections in October. Opposition parties alleged they were fraudulent. Medvedev tried to assuage democratic concerns today with assurances that multi-party elections are at the heart of Russia's democracy.

He promised reforms at the local level, more transparency and doing away with rules such as requiring signatures for candidacy (one opposition candidate was told in October his own signature had been forged).

However, democracy can only go so far in today's Russia. "Attempts to rock the situation with democratic slogans, to destabilize the state and split society" will not be tolerated, he said.

Rocking the "tandem" relationship Medvedev has with Putin - generally acknowledged to be the more powerful of the pair - was also avoided. Though some of Medvedev's proposed reforms run contrary to Putin's policies while president, Medvedev never criticized his predecessor who sat in the front row, looking mildly bored.