ns lack the power and the resources to intervene effectively in the Russian economy, so it will be difficult for the government to be an active player in Russian markets in the years to come. The first few months of Putins rule show that he is quite serious about the comprehensive modernization of Russia. If her continues to pursue this objective, his economic achievements will depend on progress being made in four areas: bringing down foreign debt, creating a market-friendly environment, restructuring the real sector, and bringing order to economic federalism. After several months reform, Russias economy has abundant natural resources, apparent technical advantages and fine economical foundations, it will have a brilliant future with an effective macroscopic policy and social stabilization.3. The Future of Putins modernizing Policy Putin has already shown himself to be a resolute and efficient leader. The economic problems he faces are very serious, However. It will be difficult to deliver Russia quickly from foreign indebtedness. Debts will press on the economy throughout Putins rule, although the government can ease this burden somewhat if it comes to an agreement with creditors. In any case, paying Russias debts may entail austerity measures, and living standards are not going to improve. The money flowing into the country now, following political and financial stabilization will be spent on technological modernization. But prospects in other economic fields are less gloomy. Putin has sufficient power to carry out badly needed reforms. Muddy depends on whether he will persist in seeking profound changes in economic institutions despite the reluctance of Russian businesspeople to adjust to a liberal economy and competitive markets.Still, if a pro-market policy is pursued, Russia can enjoy sustained growth. The most plausible economic growth projections based on this assumption, calculated by the CSR, are in the ra...
