Excerpted from a post on The Pro's Edge, my firm's corporate blog:
"Russia's capitalism will be characterised by a significant role for foreign capital; a domestic environment warped by concentration of ownership and over-dependence on natural resources; and a big role for the state...."
The above passage is from the Economist Intelligence Unit's ViewsWire Eastern Europe service. Their analysis punctures a couple of common beliefs, and looks at some of the promise and the perils ahead for a country whose resources are growing in strategic signficance.
I'm just thinking aloud here, so listen to me at your peril...
But the EIU article got me thinking about checks and balances. I'm wondering if, in the short to medium term, the power of the siloviki on the one hand, and the oligarchs on the other, will more or less balance out. Each will stop the other from taking Russia too far in any direction.
Or, there could be some vicious fights that will bring the country's growth to a near standstill.
Both possibilities are real. So far, we seem to be on the first path for the most part.
a domestic environment warped by concentration of ownership
Um yeah, to put it mildly. Did anyone ever see the Frontline special about post Cold War Russia and it's financial problems. It was like there was a sign on the front steps of the Kremlin saying "Country for sale, everything must go!"