Surveying his first year in office, Russian President Vladimir Putin has reason for some satisfaction. The political situation has stabilized, a withdrawal of Russian troops from Chechnya has been announced and the economy is growing. Russia faces a much brighter future than it has at any time in the recent past. All of that can be undone, however -- and quickly. Mr. Putin's record is more mixed than he cares to admit. Laying the basis for long-term stability, which will require him to check some of his instincts, would be his best legacy to Russia.

In his first state-of-the-union address, Mr. Putin proudly noted that the Russian economy grew 7.7 percent last year. Inflation, while still high, is under control. Russian leaders are confident enough to have turned down this week a one-year cooperation agreement with the International Monetary Fund and a structural industrial loan from the World Bank.

That may soon look like hubris. Growth is already slowing and is expected to reach only 4 percent this year. Mr. Putin acknowledged that Russia was riding the windfall from high oil prices, and the country's reliance on resource exports and the neglect of industrial development was "a road to economic and social stagnation."