(Xinhua) Dmitry Medvedev was sworn in as Russia's new president Wednesday, succeeding mentor and endorser Vladimir Putin two months after an overwhelming victory in the country's presidential election.
Putin's eight-year presidency was characterized by a booming economy and political stability at home, and Medvedev is expected to continue his predecessor's policies. However, the 42-year-old new head of state will likely also be confronted with many challenges and difficulties, analysts say.
CONTINUITY OF POLICY
In his speech after taking the oath during the inauguration ceremony at the Great Kremlin Palace's St. Andrew Hall, Medvedev spoke highly of Putin's contribution during his two terms in office and pledged to continue his policies, which have "set up strong foundations for long-term development, for decades of free and stable development."
"This unique chance is something we must use to the maximum, so that Russia becomes one of the best countries in the world... This is our strategy and guideline for years to come," said Medvedev, a former law professor and first deputy prime minister.
"I consider my primary task to be the protection and further development of civil and economic freedoms, and the creation of new great opportunities for people's self-fulfillment," he said.
Medvedev also pledged to promote the rule of law, eliminate corruption, improve people's living standards, stimulate private investment and boost industrial and agricultural growth.
CHALLENGES AHEAD
The greatest challenge Medvedev faces on taking office is maintaining the tempo of Russia's economic development.
Inflation in the country reached double-digits in late 2007, according to the Federal State Statistics Service.
The inflation is pushed by a huge inflow of capital at a time when global oil and food prices are witnessing a remarkable hike, posing both economic and political challenges for Russia, an emerging market.
Soaring oil prices during Putin's term led to an inflow of petro-dollars, which boosted the economy of the energy-rich nation. However, given its heavy dependence on energy exports, there are suspicions about how long the boom will last.
According to the Federal State Statistics Service, the Russian economy grew at an annual rate of over 7 percent in the past five years, except for 2005 when its GDP expanded only 6.4 percent.
The share of oil and gas in Russia's GDP has increased from 12.7 percent in 1999 to 31.6 percent in 2007, and natural resources account for 80 percent of its exports, according to the Institute of Economic Analysis.
The new president is expected to reform the executive and legal branches to better administrate the country and facilitate economic development, analysts say.
Another challenge for Medvedev would be finding the best way to deal with the West and some neighboring countries, ties with whom soured over such issues as the gas price dispute, the planned U.S. missile shield deployment in eastern Europe and the eastward expansion of the North Atlantic Treaty Organization.
PUTIN'S ROLE
Speaking at Medvedev's inauguration ceremony, Putin called on the Russian nation support Medvedev and continue on the path toward national development.
"It is now very important to continue the already chosen course of the country's development, guided by citizens' interests, which has already justified itself," Putin told the assembled lawmakers, government officials and foreign diplomats.
The former president's achievements during his two terms, including the consolidation of the Kremlin's power and the improvement of the economy, won him enormous support among Russians.
Just hours after Medvedev took office, Russia's Viktor Zubkov-led cabinet tendered its resignation and Medvedev nominated Putin as prime minister.
The State Duma or lower house of parliament is expected to meetThursday to vote on Putin's nomination, said Duma Speaker Boris Gryzlov.
It is widely believed that Putin will continue to wield considerable influence in his new role of prime minister and, together with strong ally Medvedev, will work to maintain Russia's stability, boost its economy and promote its influence on the international stage.
