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The world still wonders whether Dmitry Medvedev or Vladimir Putin is boss

Posted by Matt in July 12th, 2008

WHEN the other G8 leaders met their new Russian counterpart in Japan this week, they may all have had a similar question on their minds: are we talking to the right man? Is Dmitry Medvedev, described by George Bush as a “smart guy”, a real president? Or is he merely Vladimir Putin’s puppet and stand-in? So far, the answer seems to be: neither.

Rising prices are now ordinary Russians’ biggest concern, although they have not yet translated into protests. Fearing financial turmoil, people prefer to spend money than to save, particularly when real interest rates are negative, says Sergei Guriev, head of the New Economic School. The perception of stability linked to Mr Putin is proving fragile. A survey of the Russian middle class shows that half those polled do not find the situation stable, and most of those who do think it will not last. And despite growing real incomes, people feel their lives are not improving. The vast majority feel vulnerable to the arbitrary actions of corrupt state agencies.

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