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MOSCOW -- Not so long ago, a relatively young, newly elected president of Russia was presented with a proposal to amend the nation's constitution and extend the four-year term of the presidency.

His response was unequivocal. "The terms of presidential authority will not be changed under the current president," Vladimir Putin said in 2001, his second year in office, arguing that amendments to the constitution "dictated by political considerations" were dangerous. "Even in the most difficult times and times of crisis," he said, "those in power did not succumb to the temptation to correct the constitution for themselves. In the end, this was for the good." Putin repeated the pledge on the eve of his second term, saying the constitution should be left "untouched."

Now, months after leaving office and becoming prime minister, Putin is helping another relatively young, newly elected Russian president do exactly what he promised never to do himself -- rewrite the constitution to extend the presidential term. The abrupt reversal has sparked speculation in Moscow about whether Putin is preparing to take back his old job as president, and why.

Three weeks after President Dmitry Medvedev raised the issue in his first state of the nation address, lawmakers are rushing to approve the first substantive amendments to Russia's post-Soviet constitution since its adoption in 1993. The proposal would extend the presidential term to six years and that of members of the Duma, the lower house of parliament, from four years to five. A separate measure would give the Duma greater oversight over the prime minister.

Vladimir Putin says the effort to extend the presidential term to six years has "no personal dimension." (By

Given Russia's increasingly autocratic political system, there is little doubt the amendments will pass. There is also little doubt that Putin, who picked Medvedev to succeed him and remains the dominant figure in the Kremlin, is behind the plan.

In making the proposal, Medvedev said longer terms are needed to ensure that the president and members of the Duma "have enough time to put their promises into practice" between elections. Putin also endorsed the change, saying it was part of "a package to improve the structure of government."

But because the six-year term would go into effect after the next presidential vote, scheduled for 2012, many analysts contend that Putin is laying the groundwork for an early election and a return to the presidency, as soon as next year. They speculate that Medvedev could use the constitutional change as a reason to resign, triggering a special election that Putin would easily win.

Putin stepped down as president in May because the constitution barred him from seeking a third consecutive term. But nothing in the constitution prohibits a return to the presidency after an interregnum.

Appointed prime minister by Medvedev, he is still seen at home and abroad as Russia's top leader. But analysts say that there are advantages to holding the presidency and that Putin may be engineering an early return as a way to remain in power during difficult times ahead.

After presiding over nearly a decade of rapid growth, Putin now confronts the prospect of a severe economic slowdown. The stock markets are down 70 percent from their May highs, oil has fallen to $50 a barrel, and the government is struggling to defend the ruble and is spending its huge foreign-currency reserves faster than expected. As the crisis spreads to the rest of the economy, many expect public discontent to climb with unemployment and inflation.

"He knows how serious it is, and he's not sure that he will survive three more years without damaging . . . his chances of being elected again," said Nikolai Petrov, a scholar at the Carnegie Moscow Center. "From that perspective, it makes sense to have the election sooner, and it's more attractive to have a guarantee of six years."

He added that Putin would be better positioned to ride out the crisis as president because management of the economy has traditionally been seen as the responsibility of the prime minister. Putin could take credit for the government's successes while blaming problems on his prime minister, as he has done in the past, Petrov said.

Talk about a holiday surprise. Retail giant Wal-Mart Stores (WMT) announced just a week before Black Friday, the biggest sales day of the year, that it would have a new chief executive officer come February. Lee Scott, the company's CEO for the past nine years, is stepping down. He'll be replaced by Michael Duke, , 58, who currently leads the company's international division.

Retailers traditionally don't make such appointments right in the middle of their biggest selling season. But longtime Wal-Mart watchers see the change as more of a victory lap than a forced departure for the 59-year-old Scott, whose tenure had been marred by disappointing results and controversy until this year. "He's dealt with the public relations, the vicious union attacks, he's gotten morale back up—the best thing to do is leave at a moment of strength," says Howard Davidowitz, a retail consultant with his own firm in New York. "When you talk about management transition, this is as good as it gets."

Strategy Shift Lures Back Customers

Even long-term critics, such as the union-funded Wal-Mart Watch campaign, applauded the news, sort of. "Wal-Mart's announcement must be viewed in the context of the recent election," the group said in a statement. "It represents an opportunity for Wal-Mart to change from the low-wage, low-benefit business model to one that will be more appealing to an Obama Administration."

Wal-Mart's reputation took a beating in recent years as critics complained of its skimpy employee pay and health-care benefits as well as big-box stores that decimated smaller hometown rivals. Moreover, the nation's largest retailer seemed to lose its low-price focus, chasing designer apparel much like rivals Target (TGT) and Kohl's (KSS). Investors were disappointed, too, as the company's costly new store launches cannibalized sales at existing locations and Wal-Mart's once soaring stock price was relegated to the bargain bin.

The sorry streak began to change this year, in part due to the slumping economy luring customers back (BusinessWeek, 10/30/08) for cheap prices. Yet that shift was also aided in part by changes the retailer made in the past two years. Wal-Mart has been opening fewer locations and smaller stores when it does. A store remodeling program introduced skylights, wider aisles, and warmer colors to Wal-Mart's characteristically cold and cluttered layout. The company has also been editing its product assortment, focusing mostly on top sellers sold at rock-bottom prices. This holiday shopping season the chain is heavily promoting brand-name toys at $10 each.

Sales and Stock Up

As a result, Wal-Mart has been posting sales results sharply better than rivals in what is shaping up to be one of the worst sales years on record. Wal-Mart's stock is up this year, a rarity in the current dismal market. "This is Wal-Mart time," Scott told Wall Street analysts Oct. 27 during an annual presentation at company headquarters in Bentonville, Ark. "This is the kind of environment that Sam Walton built this company for." Wal-Mart shares rose slightly, to 51, on the news of Duke's appointment.