... differs radically from the Soviet society of the 1940s. An all-to-arms model might still be useful for creating a successful equivalent of Henry Ford’s automobile plant, but not of Silicon Valley.
An alternative route would involve profound structural reforms of the Russian economy, accelerated economic diversification, a dramatic increase in investment in human capital, the strengthening of institutions, an overhaul of the state administration system, a technological leap and the development of entrepreneurial and social ...
... credit-default swap spreads (%)
Source:
Sovereign Defaults Probabilities Online
/ [Electronic resource] / Deutsche Bank Research
For Russia, the threat of default emanates largely from the drop in oil prices and high refinancing rate, which hinders business. Ukraine, by contrast, requires an immediate infusion of funds to make payments to the private sector.
Reforms and/or money?
REUTERS/Fabrizio Bensch
German Chancellor Angela Merkel talks to
Foreign
Minister Frank-Walter Steinmeier and
Economy
Minister Sigmar Gabriel during a
debate of the
Bundestag, the lower house of
parliament, in Berlin, Germany, May 21, ...
... That would be a superficial comparison. Russia today has a predominantly market economy. It has a big thriving private sector. State sector is also big but private sector now exists which didn’t exist before. There are many positive things that Russia has achieved. At the same time, I think that the lack of dynamism in the economy and the lack of implementation of second-stage pro-market reforms is one of the stumbling blocks; not the only stumbling block but one of the stumbling blocks in improving Russia’s standing in the world, both from its own point of view and from the point of view of its potential partners. It won’t ...
