From crony capitalism to state capitalism, what economic policy lessons can we learn from Putin's reign in Russia?

Jonah Whanau

2018-03-13 07:34:00 Tue ET

From crony capitalism to state capitalism, what economic policy lessons can we learn from President Putin's current reign in Russia? In the 15 years of President Vladimir Putin's rule, Russia has increased its state control over economic growth that exceeds the average economic growth rate in the immediate post-communist era. With 1.5% meager economic growth, 15% inflation, and 6% unemployment, the Russian government concentrates both political and economic power in Putin's hands. This power concentration leads to a highly assertive foreign policy.

Putin uses energy as a diplomatic instrument, and abundant revenue streams from extractive oil industries obfuscate the core need for structural economic reforms in Russia. In recent years, U.S.-driven western countries impose economic sanctions on Russia and have brought about economic stagnation there. Hence, the Russian economy continues to struggle with few visible traces of new economic growth. As Europe struggles with its own economic projections due to its own economic model deficiencies, Russia shows no signs of diverting from core state capitalism without substantive evidence of a more sustainable economic model.  In reality, only better political competition can induce the Putin administration to change course.

However, the current communist political landscape cannot allow for this political competition to flourish in practice.

 


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More

What are the best online stock market investment tools?

Amy Hamilton

2021-07-07 05:22:00 Wednesday ET

What are the best online stock market investment tools?

What are the best online stock market investment tools? Stock trading has seen an explosion since the start of the pandemic. As people lost their jobs an

+See More

President Trump refreshes American fiscal fears and sovereign debt concerns through the One Big Beautiful Bill Act.

Jacob Miramar

2025-06-21 05:25:00 Saturday ET

President Trump refreshes American fiscal fears and sovereign debt concerns through the One Big Beautiful Bill Act.

President Trump refreshes American fiscal fears, worries, and concerns through the One Big Beautiful Bill Act. The Congressional Budget Office (CBO) estimat

+See More

Larry Summers critiques that the Trump tax holiday for U.S. multinational corporations may cause inadvertent consequences.

Rose Prince

2017-01-17 12:42:00 Tuesday ET

Larry Summers critiques that the Trump tax holiday for U.S. multinational corporations may cause inadvertent consequences.

Former Treasury Secretary and Harvard President Larry Summers critiques that the Trump administration's generous tax holiday for American multinational

+See More

AYA Analytica podcast provides fresh insights into the latest stock market news, economic trends, and investment portfolio strategies.

Andy Yeh Alpha

2018-12-29 09:32:00 Saturday ET

AYA Analytica podcast provides fresh insights into the latest stock market news, economic trends, and investment portfolio strategies.

Andy Yeh Alpha (AYA) AYA Analytica financial health memo (FHM) podcast channel on YouTube December 2018 AYA Analytica is our online regular podcast and news

+See More

The Trump administration introduces new tariffs on $50 billion Chinese goods amid the persistent bilateral trade dispute.

Laura Hermes

2018-06-09 16:40:00 Saturday ET

The Trump administration introduces new tariffs on $50 billion Chinese goods amid the persistent bilateral trade dispute.

The Trump administration introduces new tariffs on $50 billion Chinese goods amid the persistent bilateral trade dispute. The tariffs effectively boost cost

+See More

BlackRock CEO Larry Fink suggests that corporations should make a positive contribution to society apart from boosting the bottomline.

Olivia London

2018-01-09 08:33:00 Tuesday ET

BlackRock CEO Larry Fink suggests that corporations should make a positive contribution to society apart from boosting the bottomline.

BlackRock CEO Larry Fink emphasizes his key conviction that public corporations should make a positive contribution to society apart from boosting the botto

+See More