Kudrin: What should be done to create a new economic model?
Putin: Firstly, you [Kudrin] were one of the authors of the model of development, the program 2020. We haven't change it radically. We have to create better conditions for businesses, private investment, improve monetary policy, administrative system, law enforcement and judicial systems. It's easier to say it than do but someone has to do this.
As you know, inspite of our difficult conditions, we take certain steps in direction recommended by you [Kudrin]. This year the government froze some of the social benefits. Your coalleagues will say, this is not sufficient. We should rise the retirement age.
If we need people to trust us, we also need to have a heart. You have to feel how people live.
Now we move forwards modestly, but we still make progress. We take the approach the government and the central bank recommends. I think, this is sufficient at the moment.
Putin has also commented on the state of US and EU economies.
We will certainly be guided by considerations of higher growth rates. But we will do it in a way that will not put too much burden on the people.