How strong is Russia's economic foundation?
Russia's economy is in deep recession. Many Russians hope that rising oil prices will quickly restore the high growth rates their country enjoyed before 2008. However, deep structural flaws and a less supportive international environment are bound to depress growth, with wide-ranging repercussions for regime stability and Russia's international role. In this policy brief, Pekka Sutela explains why Russia grew so fast before the crisis and why it is unlikely to do so again unless the authorities completely rethink their economic policy.
Pekka Sutela is the head of Bofit, The Bank of Finland Institute for Economics in Transition.
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