Presidential aide Arkady Dvorkovich has said that Russian economy will probably remain stable for the next few months as oil prices remain at $50 per barrel or more. Russia's economy has apparently shrunk at the slowest pace since October. The Central Bank has said it will further cut its lending rate by 0.5 percentage points to 11.5% from June 5. New regulations on stock floats will limit IPOs on foreign markets to 5% of the company. With Russia's recent investments in Opel and Facebook, has the country 'bounced back once again, phoenix-like, from the precipice?' asks the Moscow Times. 'Smart Western investors will be here to stay' suggests another optimistic commentator. Medvedev apparently does not think that foreign investors are under pressure in Russia, but does believe that Russian investment laws and the legal protection of investments should be improved. The government will give another $806 million loan to Avtovaz. The New York Times suggests that the spike in oil prices has removed the onus on the Russian government to introduce reforms. Is 'the Putin system . . . politically, institutionally and intellectually antithetical to the task of modernization'? ponders one commentator.
Today in Russian Business - June 4, 2009
No TrackBacks
TrackBack URL: http://www.robertamsterdam.com/cgi-bin/mt4/mt-t.cgi/15038
4 Comments
Watch Us
My Firm
Official Khodorkovsky Trial Website
"The New York Times suggests that the spike in oil prices has removed the onus on the Russian government to introduce reforms. Is 'the Putin system . . . politically, institutionally and intellectually antithetical to the task of modernization'? ponders one commentator."
Well, for the American sense of Russian "reforms" or "modernization", also known as "The systematic destruction of every aspect of a civilized life for Russians so Russian assets can be stripped by corrupt Russian oligarchs at a kopek on the ruble, then sold to US investors for two." this is probably true.
And that's a Good Thing too, for Russians at least.
The more I think about the NY Times article the more astonished I am, that they refer so lightly to a process that ended the lives of millions of Russians, and blighted the lives of tens of millions more. So the crisis in Russia hasn't lasted long enough for some. Not enough Russians have been reduced to utter destitution.
It becomes ever more clear that the reason Medvedev and Putin are hated by Western elites is that they stand in the way of a third iteration of Generalplan Ost.
I don't even know where to begin on that one. No, economic reform is not some Western ideal designed to destroy civilized Russia - that's actually what is happening now. Both Medvedev and Shuvalov have talked about the need to diversify the economic base away from strictly resources - giving the country a better ability to deal with boom and bust cycles. Even before the fall of the Soviet Union, Russia was practicing a pretty aggressive capitalism, and even more so in recent years. If you are missing communism or even a more democratic socialism approach to Russian economic policy, then both Putin and Medvedev are, in theory, a target for your criticism.
Putin and Medvedev hated by the Western elites? By who? These leaders have mastered ambiguity to the point that practically no president can come forward to directly criticize them. Sarkozy calls and congratulates them on faking elections, and then does nothing when they violate his ceasefire on Georgia. Berlusconi LOVES these guys, and will help them do anything to Europe energy-wise, and the SPD party of Germany owes more loyalty to the Kremlin than to other member states like Poland.
This delusion of persecution just doesn't hold water.
I had the same reaction as you have when i read that " the crisis was too short " .
Perhaps the author has * predicted * as many others , the collapse of the " Crypto fascisto-stalino Poutino-Medvedevite regime " du to a fall of hydrocarbon prices in september and october and he is a bit angered by the * reality * of the facts .
Russia , of course , needs to diversify its economy but it is on the good way .
And to diversify an economy you have two ways :
1- spare money
2- raise money from the IMF or international banks .
Russia has the great opportunity to take money from its mineral ressources and not take a loan from the IMF or foreign banks .
So it has not to give up to the " advices " of these institutions or banks on the form of this modernization .
It is modernizing its maritime cluster with high value ships , the governement is investing in the nanotech sector , it has a very good military industrial complex .
Russia lacks of a small and middle entrepreuneurship which makes the strength of countries like Germany and should allow more transferance from the MIC to the civilian sector .
But " modernizing " Russia means form some people to transform it in a " maquinadora " of Tv sets , robot mixers and cell phones and abandon its national " champions " in the energy sector and metal sector ( Norislk ,..... ) !