Drifting Russia Wants Firm Guidance

Russia held its presidential election on Sunday, and former KGB operative Vladimir Putin has emerged as the man Russians are ready to trust with the keys to the Kremlin.

One reason for Putin's strong support has been a healthier economy since he took office as acting president, and he has been getting more good news on this front.

In Moscow, the leading share index on Thursday reached its highest close in almost two years, the rouble firmed slightly to the dollar, and the central bank reported its foreign reserves, a vital indicator of Russia's financial well-being, had risen to the highest level since the August 1998 financial crisis that drained national coffers.

But CBS News Anchor Dan Rather reports that outside of the new bright lights and fresh construction in Moscow, the capital city, a much poorer Russia begins to emerge.

On assignment in Putin’s hometown St. Petersburg, Rather reports people are proud of their past -- but the past seems faded and the future is uncertain. Many struggle to keep up, and others struggle just to survive.

The city was created out of swamp land by Peter the Great, who in 1712 made it the capital of Russia. In the 1990’s a new, democratically elected city government encouraged capitalism, but many Western investors were frightened off by corruption and crime.

The economy in St. Petersburg continues to stagnate, with many unable to rise above the poverty line.

Corruption has thwarted a group trying to transform a ruined palace from Peter the Great’s time into an art museum.

The director, Valentina Chernaya, says the mafia in St. Petersburg wants the building for a casino, and has blocked the bank loans needed for restoration.

Some of the only restoration in this historic city has been accomplished by churches, which since the fall of Communism, have been able to freely attract parishioners and contributions.

As in the rest of Russia, people in St. Petersburg are trying to make a living while coping with gangsters, corruption and an instability that makes many yearn for order and stability above all else.

In the upcoming presidential election, some observers fear that Russians voting to better the economy will accept a strongman who might curtail civil liberties. Irene Lejnova, who along with her husbands run several businesses in St. Petersburg, says: ”Stability. What we are looking and seeking -- all of us -- stability, it’s the most important thing.”

Stability is also important to Lena Gournova, who runs a new advertising agency out of one room in downtown St. Petersburg. She says, ”Economically, I think I live much, much better than I could live under the socialism. And it was capitalism that showed me how.”

She worries about authoritarianism by Vladimir Putin. But like most Russians, she will probably vote for him. She says with a laugh, ”The other choices so far do not attract me either. So he’s the least bad.”

Shares have rallied before the election, with investors expecting Putin will be a firm leader who can restore order.

But apart from the better economic picture since he took office, Putin's lure in many peoples' eyes is his promise of a stronger state to end the disorder prevailing since the Soviet Union's collapse.

Putin's closest rival in opinion polls is veteran communist leader Gennady Zyuganov, running for a second time after being defeated by Yeltsin in 1996, but he lies far behind Putin.

Opinion polls generally rate Putin at more than 50 percent, enough to secure victory in a first round, while Zyuganov usually gathers around 20 percent support.

Putin has capitalized on his tough image with the war he has waged in rebel Chechnya, an onslaught widely backed by Russians even though the West has complained of disproportionate force.

Critics say Putin has no clear economic plans while others have cited his past as an agent in the Soviet KGB security police as a sign he will be an authoritarian leader.

In the days ahead of their historic presidential election, the people of St. Petersburg, like the people of Russia, are proud of their past, confused about the present, and both fearful and hopeful for the future.