Skip to comments.Russia may be an economic powerhouse, but it's no China
Posted on 01/21/2013 12:16:21 AM PST by MinorityRepublican
Russia is to become Europe's leading economy by 2030, surpassing Germany, and pushing the UK out of the top 10 by 2050, according to a new report titled Brics and Beyond released by PricewaterhouseCoopers. But should we believe them?
It's not to say that Russia isn't able to become a leader. The largest oil producer in the world, and with its 2011 GDP (PPP) ranking just below Germany, Russia does seem like a candidate to become Europe's leading economy by 2030 and stay that way well into 2050. But that's only if you make a prognosis based on the utopia that strict economic policies, not politics, rule these wintery lands.
To understand what Europe would look like with Russia at its economic helm, one must take a closer look at the way Russia deals with money. One should also have sedatives close to hand while reviewing the figures. Russia has become one of the most corrupt countries in the world, and is barely making an effort to hide it. For instance, one of the Sochi 2014 Olympic projects a 50 km road costs nearly $8bn. A theatre (Bolshoi, to be precise) is being renovated for $750m. The list goes on.
(Excerpt) Read more at guardian.co.uk ...
Russia does not have a diversified economy. It’s based on just oil and gas production. That does not make an economic superpower.
However, if Russia continues to embrace free market principles and abandones its lust for Marxist philosophies, they have all the resources with which to become a major economic power far exceeding the projections of this article.
But like China, communism continues to choke off its chances for prosperity and real economic growth.
That was my first thought as well.
At least as far as consumer goods are concerned, Russia seems to be conspiciously absent from the world market. I believe that during Soviet times, a lot of their goods came from East Germany.
We can only dream.
If you predicted this 30 years ago, I would have said, "Yeah, and homos will get 'married' too."
-——But like China——
That’s where you strayed from reality. Communism has not choked off growth. To the contrary, the Chinese government has allowed growth and yes, capitalism to flourish. The unleashing of the economy to the hands and minds of the natural entrapraneurs has resulted in tremendous growth and resulting change.
Russia had the chance and blew it. A tremendous amount of Western money flowed into Russia after the breakup of the USSR. The money was put into the hands of corrupt party officials that took it to Switzerland. They didn’t understand the concept of cash flow. They absconded the steam leaving nothing for the next round. They took not only the profits but the capital as well. Then, they moved to London.
They had help from abroad to be sure. The pardoned Marc Rich was one of the benefactors. He took over the Russian aluminum business and milked it dry. We will never know just how much was kicked back to Bubba and algore, but it was a lot.
Russia could be China but is not. The Russians are lazy and lack the drive and spirit of the Chinese. Russia is dying and it will be a miracle it ever recovers, ........ even with oil and gas revenues.
From a few articles I’ve read, it seems Russia still has a problem with rule of law principles. Until it puts the clamps on government obstruction, corruption, and red tape, its economy will be hamstrung no matter how large its vast material resources. And Russia has more of that than any country in the world. True, a lot of it is encased in ice and snow, but it’s still there.