Putin's vision of 'great Russia'

By Nikolai Gorshkov BBC Moscow correspondent

Mr Putin's state-of-the-nation address sounded more like an election manifesto.

Putin says Russia is losing out to its more advanced competitors

The president urged all Russians to help propel the country to the top league of the most advanced nations - economically, politically and militarily.

Some progress had been made since he came to power three years ago, he said, but that was mostly clearing up the bad legacy left by his predecessor.

Now Russia has to make the next step, or rather leap, judging by the enormity of the task.

He wants Russia to double its GDP in the next 10 years, and make the national currency, the rouble, fully convertible, like the dollar.

Putin's dream

Mr Putin wants his country to integrate into Europe, and into the global economy so that Russians can freely move around and compete in business with the best in the world.

President Putin admitted these were all daunting tasks

He shared a dream that one day a Russian going abroad would only need his passport and his roubles, without queuing for visas or foreign exchange.

But Russia's economic foundations are still shaky, he admitted.

Russia is losing out to competition from its more advanced neighbours.

Economic growth is patchy, with rampant bureaucracy and inefficient government stifling private initiative.

President's gamble

President Putin said the government needed to act more decisively and competently, but stopped short of castigating it for its failings as he has often done in the past.

Putin was speaking just days after suicide attacks in Chechnya

Observers believe he does not want to rock the boat before the parliamentary elections at the end of this year, and the presidential elections in March.

However, he did promise a leaner, more professional cabinet after the election, based on a parliamentary majority.

This could be his biggest gamble, since current opinion polls suggest the communists, his sworn enemies, may form that majority, as they do now.

'Daunting tasks'

But more immediately President Putin is concerned with the challenge of stabilising Chechnya, fighting international terrorism and moving on from foreign policy setbacks.

He vowed to push through a political reconciliation with the Chechens, including an amnesty, despite what he called rearguard action by the rebels targeting innocent civilians.

He also vowed to strengthen Russia's partnership with the countries of the global anti-terrorist coalition.

But in a veiled criticism of the United States, he said some of the countries were using their military clout not to fight the evil but to expand their sphere of influence.

He spoke in defence of the United Nations as the only legitimate world arbiter.

And he promised to modernise Russia's armed forces to protect the country's national interests.

President Putin admitted these were all daunting tasks, and called on Russian society to mobilise its will and resources to achieve them.

He believes they are achievable by the year 2010.

The problem is, Mr Putin's second term in office will run out two years early, provided, of course, he gets himself re-elected next March.