PRESIDENT PUTIN

March 2000
		After several months as acting president of Russia, Vladimir Putin has been formally elected to the country's presidency. Can he bring needed reforms to Russian democracy? Anna Vassilieva, Associate Professor of Russian studies at the Monterey Institute of International Studies, Steven Solnick, Associate Professor of Political Science at Columbia University, and Eva Busza, Assistant Professor of Government at the College of William and Mary, respond to your questions.

Forum introduction Could Putin turn toward more authoritarian methods of government? Will Russia's business climate improve? How will Putin direct Russia's foreign affairs? Can Putin restore Russia's national pride? How does Putin compare to Russia's past leadership?     Online Special: Politics in Russia Complete NewsHour coverage of Europe   The Library of Congress's Russia study Russian government Russian Embassy in Washington The College of William and Mary Columbia University The Monterey Institute for International Studies

Jim Drury of Sarasota, Florida asks: Will the business climate in Russia be enhanced by Mr. Putin's election or do you think his election will prolong the worries of investors?   Eva Busza responds: I think there is good reason to believe that the investment climate will improve in the short-run---particularly in areas where ethnic conflicts have not surfaced in the last few years.   Steven Solnick responds: Putin's election may offer short-term benefits for investors, and Russian has actually seen its first net positive inflow of real investment in a decade under Putin. This short-term boost, however, owes more to the rise in world oil prices and the boost in domestic demand for Russian goods after the devaluation of the ruble in 1998. In the long run, the investment climate in Russia depends on three things: 1) establishing a firm fiscal base for the Russian state by reliably collecting taxes (in cash, not in barter) that cover its expenses; 2) Reducing the oppressive corruption rampant in the Russian state; and 3) Strengthening the rights of shareholders of Russian firms, especially outside shareholders. Unfortunately, in his eight months in office, Putin has not yet begun to tackle these critical challenges.   Anna Vassilieva responds: The business climate can only be improved if President-elect Putin continues to insist on major reforms in the country's legislative system. He made it very clear that reforms in tax, customs, and land codes are urgently needed. If he succeeds not only in changing the legislation but also in convincing the people that compliance with law is in their vital interest, the climate for foreign investment should drastically improve. What is the most encouraging sign for Western investors at the moment is Mr. Putin's determination not to carry out the populist call for a redistribution of property, as well as his assurances that he will continue the policy of market liberalization.