13 Nov 2009

Russian president calls for major economic reform

7:27 am on 13 November 2009

Russian president Dmitry Medvedev has called for major reform of the economy in his annual state of the nation address.

Mr Medvedev wants to transform Russia into a more modern and open country, by introducing sweeping reforms, the BBC reports.

He says the Soviet model no longer works and that Russia's survival depends on rapid modernisation based on democratic institutions.

Mr Medvedev says oil and gas-based economy has to be reworked with hi-tech investments and Russia's inefficient state giants should be overhauled and issues of accountability and transparency addressed.