The Soviet model no longer worked, he said, and Russia's survival depended on rapid modernisation based on democratic institutions.
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Inefficient state giants should be overhauled and issues of accountability and transparency addressed, he said.
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"Instead of an archaic society, in which leaders think and decide for everybody, we shall become a society of intelligent, free and responsible people."
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Government had to become more transparent, he said, and corruption should be punished. The giant state companies created by his predecessor, Vladimir Putin, had "no future", he said.
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