Russia needs a flexible multi-party system...

"We need an "intellectual economy" which can be created only by intelligent people and that is why the society is becoming more complicated," he told a Kremlin meeting of the State Council, an advisory board of regional governors and top officials.

"The society should not be commanded, it should be in cooperation," Medvedev added.

After a string of political reforms undertaken during the 2000-08 presidency of Medvedev"s predecessor Vladimir Putin, currently a powerful prime minister and a partner in the ruling tandem, the number of national political parties in Russia has dropped down to 7 from 48.

The pro-Kremlin United Russia party dominates national parliament and regional assemblies.

Medvedev has said in the past he was aiming to change the Kremlin-centered political system and give more say to smaller parties, most of which practically ceased their existence during Putin"s presidency.

"Our policy should become more flexible, more modern,"

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