In 2000, he says 42 million people lived below the poverty line. Now that figure is 20 million, which Putin says is "unacceptably high."
“For the 18th time Putin tells Putin that it is necessary to fight corruption, boost the economy and stop oppressing business. Putin is listening attentively to what Putin is saying.”
He says falling behind is the main threat, main enemy Russia faces now -- not outside threat of invasion.
Again he praises the huge talent and creativity of the Russian people and calls on them to be open to new developments in the world.
Russia risks loss of sovereignty. If it falls behind, young people will go off to other, more developed countries.
"The coming years will be decisive for the future of the country," Putin says. First reference to presidential election. "Every Russian must understand what is happening in the world and what challenges we face."
Putin says he has stabilized the macroeconomic indicators and now it is possible to move forward with modernization and reform.
Putin says Russia's greatness is its people and the "creativity of each individual."
He says we must not allow "stability" to become "complacency."