Иn the wake of the 2009 recession, declinist rhetoric has come to dominate discussion of Russia’s economic prospects. Jim O’Neill, the founder of the BRIC’s concept, has his work cut out defending Russia’s expulsion from the group in favor of Indonesia, Mexico, or some other random middle-sized country. Journalists in the Western media claim its economy is
Not really arguing anything in this post, just sharing some interesting stats I found about the affluent class in Russia (as compared with BRIC’s and others). First, as we know Russia is (in)famous for the opulence of it oligarchy. But according to the research firm Wealth-X, despite a relatively high number of billionaires, its overall share
The most famous corruption indicator is Transparency International’s Corruption Perceptions Index. Its only problem is that the perceptions of their self-appointed experts have nothing to do with reality! As I explained in previous posts on this blog, it suffers from numerous flaws. Part of it has to do with its questionable methodology: using changing mixes of
My views on Khodorkovsky – and by extension his being found guilty of $25bn embezzlement – aren’t exactly a secret (1, 2, 3) so I’ll keep this brief. 1. As usual, the only people who care about this are Western politicians eager to score cheap shots against Russia’s “assault” on transparency and rule of law
The standard view of the American economy is one of exponential growth: even if interrupted by a recession once a decade and a Depression once every two generations (the 1890’s, the 1930’s, the 2010’s?), the engines of industry would always come back roaring again. Output per American could always be expected to increase as it
The Russian magazine Esquire came up with some pretty shocking figures: It would be cheaper to pave one 48km road for the Sochi Olympics with elite beluga caviar than asphalt. The total cost would come in at a cool 227 billion rubles, or $160 million per kilometer – five times higher than what it costs
Though it’s not quite true that Russia has “no roads, only directions”, the old saying isn’t far off the mark. The World Bank’s recent report on Russia’s economy notes that the Eurasian giant’s road network is primitive and crumbling, coming in 111th in a global ranking (the railway system does much better at 33rd); more
There is a wide divergence of views on Russia’s economic future. The pessimists project near zero growth (e.g. SWP, Guriev & Zhuravskaya), or even a renewed collapse if Europe goes haywire. The inventor of the BRIC’s concept (and Russia bull) Jim O’Neill of Goldman Sachs believes it will manage to eke out growth of 7%,
In the wake of the economic crisis in which Russia’s GDP fell by a stunning 7.9% in 2009, its status as a BRIC economy – with its connotations of promise and progress – was brought into question. After all, isn’t it a dying nation with rapidly degrading infrastructure? Isn’t it amazingly corrupt? Wouldn’t its contempt
It is now nearly 20 years since market reformers began liberalizing the economies of Eastern Europe, or as some smart-ass put it, trying to revive the fish in the centrally planned fish stews. These stews, cooked to diverse recipes from goulash socialism to Soviet “structural militarization“, were subjected to a wide spectrum of overlapping treatments ranging
A year ago I predicted that there will be a “decoupling from the unwinding“, as “emerging markets” by and large ride out the temporary shocks of declining Western demand for their exports (China) and the interruption of Western credit intermediation (Russia) before resuming growth. This is one aspect of the trends leading to the imminent demise
The welfare state, or what we conceive of as such today, is a relatively recent phenomenon. Although pre-modern states did perform some pro-welfare functions such as regulating prices and wages, maintaining workhouses for the poor and even a limited form of targeted social support[1], this spending was framed not in terms of the state’s fulfillment
Chang, Ha-Joon – Kicking Away the Ladder: Development Strategy in Historical Perspective (2002) Category: economy; history; industrial policy; Rating: 5/5 Summary: Kicking Away the Ladder:How the Economic and Intellectual Histories of Capitalism Have Been Re-Written to Justify Neo-Liberal Capitalism (Ha-Joon Chang) Much has been said of the smug arrogance, cultural aloofness and end-of-history conceit characterizing the
In most Russian bookstores, there is a bookshelf or two dedicated to so-called “patriotic literature” – reappraisals of Stalin against “liberal revisionism”, overviews of Russia’s secret super-weapons, the exploits of its special forces and Russian theo-philosophy. Much of it is (apparent) nonsense, but the economic crisis has forced me to reconsider one particular “patriotic” thesis
Russia is commonly represented as one of the most corrupt countries in the world in the Western media, ruled over by Kremlin clans who sugarcoat their kleptocracy with bombastic nationalism. The most oft-cited evidence comes from Transparency International. This is an organization which aggregates surveys of foreign businesspeople and regional analysts to compile a Corruption