A widespread explanation of the economic crisis is that it’s Russia’s resource curse, and we’ve arrived at the day of reckoning. Of course, this a metaphor; everyone knows that to have resources is not a curse, but a gift from God. But resource availability can work against the economy.Russia needs to rebalance its economy using import substitution (but not aiming for import displacement and autarky) and reindustrialization after the collapse of the USSR and the disastrous liberal period that colonized Russia.
This could take place quickly if Russian policy makers were in paradigm with MTT, since the needed real resources are already available.
It’s Not Oil That’s Russia's Curse, It’s Excessive Imports
Victor Ivanter, director of the Institute of Economic Forecasting
Originally appeared at IA Devon - Oil news from the Volga and Urals.
Translated by Svetlana Kyrzhaly and Rhod Mackenzie