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Begin New Search Topic Politics Political Geography Russia Content Type Policy Brief

11. Russia's Economy under Putin: From Crony Capitalism to State Capitalism

Author:
Simeon Djankov
Publication Date:
09-2015
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
In the 15 years of President Vladimir Putin's rule, state control over economic activity in Russia has increased and is greater today than in the immediate postcommunist era. The concentration of political and economic power in Putin's hands has led to an increasingly assertive foreign policy, using energy as a diplomatic tool, while plentiful revenues from extractive industries have obfuscated the need for structural reforms at home. The West's 2014 sanctions on Russia have brought about economic stagnation, and with few visible means of growth, the economy is likely to continue to struggle. Watching Europe struggle with its own growth, in part because of deficiencies in its economic model, Russia will not be convinced to divert from state capitalism without evidence of a different, successful economic model. Changing course can only be pursued in the presence of political competition; the current political landscape does not allow for such competition to flourish
Topic:
Economics and Politics
Political Geography:
Russia and Europe

12. Russia’s Hidden Underbelly of Debt

Author:
Maya Rostowska
Publication Date:
07-2014
Content Type:
Policy Brief
Institution:
The Polish Institute of International Affairs
Abstract:
Despite the reigning consensus that the Russian economy is facing trouble ahead, some indicators suggest that the situation is not as dire as first appeared. Moreover, it may seem that the fiscal situation in the country—particularly its copious foreign currency reserves and substantial sovereign wealth funds—could still help extricate Russia from its economic difficulties. However, the very difficult budgetary situation in the regions and the staggering levels of debt of its companies suggest that economic problems could hit the country hard. Investors should remain vigilant of social and political tensions and the possible further deterioration of the business environment in Russia.
Topic:
Debt, Economics, Politics, Governance, and Budget
Political Geography:
Russia

13. Deterring Russia after Ukraine: CEE Divided on the Future of NATO Policy

Author:
Artur Kacprzyk
Publication Date:
07-2014
Content Type:
Policy Brief
Institution:
The Polish Institute of International Affairs
Abstract:
In the context of the Ukraine crisis, Poland, Lithuania, Latvia, Estonia and Romania have called for significant strengthening of NATO’s deterrence and defence policy and for permanent deployments of Allied troops in the region. This position is, however, not shared by the rest of the Central and Eastern European NATO members. Similar to Western European countries, Hungary, Czech Republic and Slovakia do not feel as threatened by Russia’s actions and do not support moves that could damage their political and economic relations with Moscow. Fundamental differences among the current positions of the regional Allies indicate a profound divide between Central and Eastern European NATO members.
Topic:
Defense Policy, NATO, Economics, Politics, and Regional Cooperation
Political Geography:
Russia and Ukraine

14. Divided Stands the Visegrad? The V4 have been united towards the Ukraine crisis but remain split concerning Russia

Author:
András Rácz
Publication Date:
06-2014
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
The destabilization of Ukraine and the possible escalation of the crisis have presented a direct security risk to the Visegrad countries - Poland, the Czech Republic, Slovakia and Hungary - particularly concerning military security, the potential interruption of energy transit, and the possible influx of refugees. These factors have forced the Visegrad states to show unprecedented unity and activism in addressing the crisis. However, regarding the possibility of sanctioning Russia, the Visegrad Group is unable to take a joint position. The main reason for this is that Russia does not pose a direct military threat to the region. Consequently the individual policies of the Visegrad countries towards Russia are defined by a constellation of geopolitical concerns, normative motivations, business interests and domestic political ambitions, which are decidedly different in all four cases. Domestic political motivations, such as the will to increase domestic legitimacy, and concerns over the economic effects of sanctions, obviously influence the foreign policy actions of the Visegrad governments. However, Viktor Orbán of Hungary was the only one to break the Visegrad solidarity on Ukraine with his domestically-motivated remarks in May 2014 and demanding autonomy for Hungarians living in the Trans-Carpathian region. As most normative, business and domestic political motivations are of a lasting strategic nature, it is highly likely that the general incoherence of the Visegrad region regarding Russia will prevail.
Topic:
Security, Politics, and International Security
Political Geography:
Russia, Ukraine, and Poland

15. An Economic Strategy to Save Ukraine

Author:
Anders Åslund
Publication Date:
11-2014
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
Ukraine has experienced a year of unprecedented political, economic, and military turmoil. The combination of Russian military aggression in the east and a legacy of destructive policies leading to pervasive corruption has plunged the country into an existential crisis. The West, meanwhile, has been largely paralyzed with uncertainty over how to assist Ukraine without reviving Cold War hostilities. Yet all is not lost for Ukraine. A tenuous ceasefire, along with the successful elections of President Petro Poroshenko in May and a new parliament in October offer an opportunity for economic reform. If the current ceasefire in the east holds, Ukraine has a great opportunity to break out of its vicious circle of economic underperformance. Yet, the window of opportunity is likely to be brief. The new government will have to act fast and hard on many fronts to succeed.
Topic:
Conflict Resolution, Security, Economics, and Politics
Political Geography:
Russia, Europe, and Ukraine

16. Why Brazil has not criticised Russia over Crimea

Author:
Oliver Stuenkel
Publication Date:
05-2014
Content Type:
Policy Brief
Institution:
Norwegian Centre for Conflict Resolution
Abstract:
Emerging powers frequently stress the importance of sovereignty and the inviolability of international law. As a consequence, many Western observers expected that emerging powers such as Brazil would be quick to condemn Russia's annexation of Crimea. Yet Brazil remained neutral and abstained from the UN General Assembly resolution that criticised Russia. Together with the other BRICS countries, it opposed suggestions to exclude Russia from the G-20, thus markedly reducing the effectiveness of Western attempts to isolate President Putin. Brazil's unwillingness to criticise Russia may have less to do with its opinion on Russia's annexation of Crimea per se and more to do with Brasília's scepticism of Western attempts to turn Russia into an international pariah. From Brasilia's perspective, pushing countries against the wall is rarely the most constructive approach. In addition, many in Brazil are wary of a global order that privileges the U.S. and allows it to flout many norms that apply to everyone else, arguing that these double standards are far more damaging to international order than any Russian policy. Finally, Russia annexed Crimea at a time when anti-Americanism around the world still runs high as a consequence of the NSA spying scandals, making alignment with U.S. positions politically costly at home.
Topic:
Emerging Markets, Politics, and Sovereignty
Political Geography:
Russia, Europe, Asia, Brazil, and South America

17. Right-wing nationalism in Russia: A by-product of electoral competition or a political agenda for the future?

Author:
Maria Nozhenko
Publication Date:
09-2013
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
Debates on nationalism acquired a great deal of significance in Russia in the summer of 2013, with the activities of right-wing nationalists increasing during this period too. Modern Russian nationalism has its roots in anti-immigrant sentiments, mainly as a consequence of failed nation-state building in the post-Soviet period. Most right-wing organisations are marginalised, with membership and support relatively low. But the anti-immigrant ideas which these organisations propagate currently enjoy high levels of support in Russian society. Over the past eight years, the activities of right-wing nationalists have been largely limited to 'the streets', due to the lack of opportunities open to nationalist parties to participate in electoral processes. The prospects for Russia's right-wing nationalist organisations will depend on the regime's approach to 'illegal' immigration, but also on the state's overall policy towards right-wing nationalism. Three scenarios are seen to be possible at this juncture: 'marginalised nationalists', 'underground nationalists', and 'incorporated nationalists'.
Topic:
Nationalism, Politics, and Immigration
Political Geography:
Russia

18. Alternative futures for Russia: the presidential elections and beyond

Author:
Simon Saradzhyan and Nabi Abdullaev
Publication Date:
05-2011
Content Type:
Policy Brief
Institution:
European Union Institute for Security Studies
Abstract:
This Occasional Paper outlines alternative scenarios for Russia's short-term future with a focus on potential outcomes of the March 2012 presidential elections. To construct these scenarios, the paper first identifies key predetermined factors in Russia's domestic and foreign policy domains. The paper then outlines and analyses key factors of uncertainty, which the authors define as events that could be 'game changers', having the potential to lead to a significant change in the course of Russia's development over the coming twelve months. The paper goes on to present three scenarios, based on three different interpretations of key areas of uncertainty and their interaction with predetermined factors. The paper concludes which scenarios are more probable and which are more favourable for Russia and by extension for its partners, and primarily the European Union.
Topic:
Corruption, Democratization, and Politics
Political Geography:
Russia and Europe

19. The persistence of Putin's Russia: Why don't Russians demand more?

Author:
Sinikukka Saari
Publication Date:
11-2011
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
Many in Russia have expressed their disappointment with Putin's decision to run for a third presidential term.They claim that Putin is becoming the new Brezhnev and that the stability he was once praised for bringing about in Russia is now turning to stagnation. Cynicism and disillusionment with the Putin regime seem to be becoming more widespread in Russia. Ever-increasing corruption, lack of the rule of law and political competition as well as lack of innovation and dynamism in the economy all reinforce the general feeling of pessimism. One would expect that the weakening legitimacy of the regime would lead to vocal demands for change. However, this is not the case in Russia, where several historical, political, structural and sociological conditions make wider popular protests unlikely. The tragedy of today's Russia seems to be that the regime is too weak to reform itself, yet simultaneously strong enough to prevent viable alternatives to its rule from gaining ground. Despite the likelihood of a negative future trajectory, Putin's Russia seems set to drag on.
Topic:
Corruption, Politics, and Regime Change
Political Geography:
Russia

20. Medvedev's take on the power vertical: Are the rules of the game changing in Russia?

Author:
Katri Pynnöniemi and Sinikukka Saari
Publication Date:
01-2010
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
The political system that Vladimir Putin established during the first decade of the 2000s is often referred to as 'the power vertical'. The term suggests a stable, streamlined and effective centre-led system. Yet, this image does not quite correspond with Russian reality. The system creates inefficiency, encourages corruption and is hostile towards bottom-up political initiative. The current leadership acknowledges that Russian stability is on shaky ground and therefore the system is in need of modernization. The economy is clearly a priority for the leadership: it believes that the political system's modernization should emerge gradually and in a highly controlled fashion from economic achievements. The current system in Russia is hostile to innovation and prone to corruption and therefore Medvedev's modernization plan is unlikely to succeed unless transparency and open competition within the system are considerably enhanced. This will be difficult to achieve because the elite benefits from the current corrupt and non-transparent system where the lines of responsibility are unclear. The West should not expect dramatic changes and radical liberal reforms in Russia. Western actors should, nevertheless, actively support and encourage economic and political reforms in the country and engage with it through international cooperation on specific issues such as anti-corruption policy. By stepping up its engagement with Russia, the West can demonstrate that a prosperous, competitive and modern Russia is also in the interests of the West.
Topic:
Democratization, Politics, and Power Politics
Political Geography:
Russia, Europe, and Asia