By: Mr. Khalid Taimur Akram, Executive Director, Pakistan Research Center for a Community with Shared Future (PRCCSF), Islamabad
Introduction: When the Soviet Union collapsed, President Boris Yeltsin’s modernization policies left Russia in a weakened state. Economic instability and ineffective governance plagued the nation. Upon Yeltsin’s resignation, Vladimir Putin became acting president, taking immediate steps to address the country’s economic and political challenges.
Putin’s Rise to Power
Before Putin’s presidency, Russia was burdened with debt to the IMF and struggling financially. When he assumed the role of president in 2000, he focused on stabilizing the economy, reforming policies, and restoring national pride.
During his first decade in office, Russia’s nominal GDP grew almost tenfold. By implementing socio-economic reforms, Putin transformed the country from a debtor nation into one of the largest creditors to the United States.
Biography of Vladimir Putin
Vladimir Putin was born on October 7, 1952, in Leningrad (now St. Petersburg). He graduated in law from Leningrad State University in 1975 and later earned a Ph.D. in Economics. In 1985, he joined the KGB and served in East Germany until 1990, retiring as a lieutenant colonel.
Following his intelligence career, Putin worked at Leningrad State University before joining the city administration under Mayor Anatoly Sobchak. His competence led to rapid promotions, eventually becoming Russia’s Prime Minister in August 1999. By the end of that year, Yeltsin resigned, naming Putin acting president. In March 2000, Putin won the presidential election with 53% of the vote.
Economic Reforms and the “Gerf Plan”
When Putin took office, Russia faced negative growth, high inflation, and soaring unemployment. He introduced the Gerf Plan the Socio-Economic Development Programme for 2000–2010 which reformed tax, pension, land, business, and civil services.
The recovery of oil prices from $10 to $150 per barrel allowed Putin to channel petrodollars into rebuilding the economy. By 2008, Russia had paid off all state debt and created a stabilization fund.
From 2000 to 2008, Russia’s GDP grew by 94%, and its share in the global economy rose from 2% to 4%. In 2008, the government launched the Concept for the Long-Term Socio-Economic Development of Russia until 2020, focusing on innovation, global integration, and human capital investment. By 2022, Russia’s nominal GDP reached $2.24 trillion.
Foreign Policy Achievements
Under Putin, Russia strengthened its oil and gas sector, becoming a global energy superpower. His foreign policy balanced relations with neighboring states and major world powers, fostering partnerships with China, Pakistan, India, Japan, and South Korea.
Russia also played an active role in BRICS, RIC, and maintained close ties with Middle Eastern nations. These alliances enhanced its geopolitical influence and global standing.
Why Putin Remains Popular in Russia
Putin’s leadership has been marked by stability, economic growth, and restored international status. According to the Levada Center, his approval rating has remained above 65% for two decades, peaking at 89% in 2014.
Russians view Putin as a decisive leader who improved living standards, paid off debt, increased gold reserves, and boosted trade surpluses. His reforms have ensured national stability and elevated Russia’s status as a world power.
Conclusion: In just two decades, Putin transformed Russia from a struggling post-Soviet state into a stable and influential global power. His economic and foreign policies continue to shape the nation’s path toward sustained growth and geopolitical significance.
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