Observations on the Costs of the Yukos Affair to Russia

A prominent senior British specialist on the Russian economy reviews some consequences of the Russian state's dismemberment and partial re-nationalization of the Yukos oil company. The implications for state interventionism of Russia's engagement in international markets are assessed, and the effects of market feedbacks to Russian policymakers analyzed. Also considered is the question of whether Russian economic structure is changing in ways that could lessen the vulnerability of business to state action. Journal of Economic Literature, Classification Numbers: F21, F23, F32, L71. 4 figures, 1 table, 16 references.     

Russia’s Accession to the World Trade Organization

Two noted British economists survey a range of issues linked to Russia’s forthcoming accession to the World Trade Organization (WTO) and its implications for the Russian economy. They describe the far-reaching commitments Russia has undertaken in the realm of tariffs, non-tariff barriers, and openness to inward investment, identifying factors that tend both to support and challenge realization of these commitments. They follow with a brief historical account of the reasons why the accession process for Russia was so protracted and an assessment of the likely medium- and long-term economic impacts of accession for the country as well as for its particular regions and social groups. The arguments suggest that the likely direct impacts of accession will overall be modest (at least over the near- to medium-term), and focused in spheres in which a foreign presence may enhance the productivity of Russian firms in the domestic market (e.g., business services). Potentially, more substantial indirect benefits will largely depend on the scale and seriousness of domestic reform policies launched in support of WTO compliance (i.e., effects of accession on Russia’s political economy). Journal of Economic Literature, Classification Numbers: F130, F500, P330. 3 figures, 6 tables, 54 references.     

Can Russia Break the "Resource Curse"?

A noted European economist argues that the Russian economy and its post-2000 growth have been heavily dependent on natural resources, especially hydrocarbons, and are bound to remain so for some time to come. Given that many economists have come to view rich natural resource endowments as a "curse" that undermines development, the question arises as to whether Russian economic development is doomed. The author argues that while the challenges posed by resource dependence are serious, they can be overcome, or at least substantially mitigated, if accompanied by the right economic policies as the examples of Australia, Canada, and the Scandinavian countries demonstrate. He analyzes what these economic policies are for Russia, and how to set up Russian economic and political conditions to facilitate their implementation. Journal of Economic Literature, Classification Numbers: E6, O1, O52, P2, Q43. 4 figures, 2 tables, 50 references.     

The "Crisis" Geography of Contemporary Russia

Against the background of structural and geographical changes that brought about the economic crises of the 1990s in the Russian Federation and subsequent recovery in the early years of the 21st century, the authors analyze the challenges of (and responses to) the 2008 global economic and financial crisis in Russia. Quantitative data derived from official sources and the authors' own research is used to analyze developments at a variety of spatial scales, including inter- and intra-regional, urban and rural. The noted authors speculate about possible exit paths from the crisis and their impacts on spatial differentiation within the Russian Federation. Journal of Economic Literature, Classification Numbers: F210, G010, O150, O180. 6 figures, 1 table, 55 references.     

The Colonization of the Russian Barents Sea Coast (Mid-19th to Early 20th Century): Two Approaches to the Economic Development of the Area

This article deals with the early colonization of the Russian Barents Sea Coast (the so-called Murman Coast) in the middle of the 19th and early 20th century. It focuses mainly on the household economy and economic adaptation in the area by groups of Finnish, Russian, Karelian, Norwegian and Sami colonists. The opening up of the new territory by the colonists resulted partly in the employment of traditional methods of using natural resources and partly in the culture of these groups being transformed. Based on this, two different patterns of using natural resources were singled out within the ethnic groups that settled on the Murman Coast (western and eastern). These patterns were more suited to the new living conditions in each of the respective areas, and became the basis for different trends in the economic development of the Murman Coast.     

The Booming Russo-Japanese Economic Relations

A noted Japanese economist analyzes the history, present status, and future prospects for Russo-Japanese economic relations. The author demonstrates that the boom in trade between the two countries in the 2000s is unprecedented, ending the stagnation in bilateral trade that began in the early 1980s, when the era of large-scale Siberian resource development projects came to an end. He argues that underlying the current boom is an eastward shift in the Russian economy, characterized by its energy and investment policies as well as foreign economic relations. The paper considers in detail two important factors supporting this boom: (1) Japan’s exports of automobiles to Russia; and (2) Russia’s exports of oil and gas to Japan. He concludes with a guardedly optimistic prognosis suggesting growth in the bilateral economic relations on the grounds of the continuing eastward shift of the Russian economy and a marked correspondence between the demand and supply of the two countries. Journal of Economic Literature, Classification Numbers: F140, O520, P280, Q430. 7 figures, 4 tables, 50 references.     

Russia's Economic Transformation under Putin

A prominent specialist on the Russian economy presents a systematic account and analysis of Russia's economic transformation under President Vladimir Putin. The study covers the period from the financial crash of August 1998 through the years of spectacular growth leading to August 2004. The discussion encompasses the financial stabilization in the aftermath of the crash, the work of Putin's first economic team, the tax reform, tightened budgetary control, deregulation, land and judicial reforms, trade policies, the economic agenda for Putin's second term, and prospects for further economic reform. Journal of Economic Literature, Classification Numbers: E60, E63, F13, H20, H60, P21. 1 figure, 2 tables, 57 references.     

Putin's Second Term Is Likely to Differ from His First: A Rebuttal

The author of "Russia's Economic Transformation under Putin" replies to comments and critical assessments of his paper by two prominent Western specialists on the Russian economy. His rebuttal to the more severe critic of the two emphasizes the prospective change in Putin's approach to economic reform during his second presidential term. The author believes that economic policymaking in the Kremlin, rather than the impact of world oil prices, will tend to shape Russia's considerable economic growth. Journal of Economic Literature, Classification Numbers: E60, E63, F13, H20, H60, P21. 8 references.     

Russia's Accession to the World Trade Organization

A prominent specialist on the Russian economy presents a timely assessment of Russia's accession to the World Trade Organization. The author discusses the reasons that prompted Russia to seek membership and scrutinizes the major obstacles, such as complexities of the accession process and the country's institutional malaise. An analysis of the effects of possible membership on the Russian economy is followed by a focus on Putin's first term (2000-2003) when he supported entry, and the second (2004-2007) when he lost interest. Also presented are two scenarios projecting reinvigorated pursuit of Russian membership, or abandonment of the goal. Journal of Economic Literature, Classification Numbers: F13, F40, O19. 1 table, 46 references.     

Perspectives on the Potential of Russian Oil

A prominent American specialist on the economy of the former USSR comments on Russian oil in light of a preceding paper on the subject. Noting the congruence of Russia's economic growth with world oil prices, the author points out that the country's growth is endangered by sharp declines in those prices. He also recalls how an oil windfall shaped Russian thinking in the 1970s, questions how long Russia can pump oil at its maximum level by invoking the American experience from 1859 through the peak in 1970 until the present, analyzes the two corporate models in the Russian oil sector, and briefly outlines Putin's new approach to foreign investment in the sector. Journal of Economic Literature, Classification Numbers: L71, O13, O18. 3 figures, 8 references.     

Putin and Russia's Economic Transformation

A British specialist on the Russian economy comments on economic policy under Putin in reference to a paper on the subject by Anders Åslund. The relation between economic reform and growth is examined in light of international comparative data. The implications of the Yukos affair for Russian policy and performance are reviewed by the author with particular regard to property rights and business expectations. Journal of Economic Literature, Classification Numbers: E63, K0, P26, P27. 2 tables, 20 references.     

The use of regulation and governance theories in research on post-socialism: the adaptation of enterprises in Vyborg1

This article deals with developments since the collapse of socialism in Vyborg, the former Finnish city transferred to the Soviet Union's north–west frontier in 1944. It assesses how enterprises founded during the socialist era, their heirs, and new Russian and foreign firms, have coped with economic change and adjusted to the new economic system. It also explains the evolution of hybrid forms of activity on the enterprise level and their impact on the development of Vyborg as a local economy. This paper shows that the traditions of socialism embodied in many enterprises' adaptation strategies have helped the public sector in financial crisis because enterprises have continued the socialist traditions to take care of fractions of public infrastructure.     

Petsamo: bringing modernity to Finland’s Arctic Ocean shore 1920–1939

In the Peace Treaty of Tartu 1920 Finland was given a corridor to the Arctic Sea. This area of 10,000 km² called Petsamo, was situated along the eastern side of the present Russo-Norwegian border. For many Finns Petsamo was seen as part of a Greater Finland expansionist ideology. Petsamo remained part of Finland until 1944, and during that time tourism was intensified to this new Arctic Ocean part of Finland. However, the most significant single project for bringing modernity and the young Republic of Finland to Petsamo was the Kolosjoki nickel mine. Kolosjoki was a piece in a larger international struggle for natural resources to be used for economic and political gains both in times of war and peace. The Kolosjoki mine can be compared with other similar mining communities in the Arctic and Siberia. When compared with the Soviet Russian Piramid mining community on Svalbard, differences in architectural style also become a signifier. The Kolosjoki mining village was built in a functionalistic style that was eagerly adopted by Scandinavia and Finland at that time. An Arctic dimension, connected explicitly to the Arctic Ocean presence of Finland at that time, is mostly lacking in later Finnish collective history culture.     

The Great Russian Depression of the 1990s: Observations on Causes and Implications

A senior Japanese economist briefly examines the causes of Russia's great economic depression of the 1990s, highlighting the important role of the ruble exchange rate. The author argues that “liberalization” of exchange markets contributed substantially to the depression, because of the “dual” nature of the Russian economy (strong energy sector and weak manufacturing sector). Journal of Economic Literature, Classification Numbers: E50, E58, F31. 7 tables, 22 references.     

THE VARIOUS RUSSIAN WORDS FOR SNOWSTORM

The Russian language has four distinct words for “snowstorm,” and there is a need for precise definition and proper regional context. Metel' is the common term for wind-driven snow. V'yuga is a common literary term for snowstorm. Buran is a regional term associated with the southern Urals and adjacent regions of Orenburg, Kazakhstan and West Siberia. Purga, sometimes used as a synonym for blizzard, entered Russian from Finnish, and has a regional association with northern Russia and northern Siberia. (The article was proposed by Victor L. Mote of the University of Houston, who also assisted with the translation.)     

从货币流通量看清代前期的经济增长与波动

The eighteenth century was the heyday of Chinese traditional economic development, that the monetization and sharp increase in the supply of silver stimulated long-distance trade and the rise of regional merchants groups, and increased industrial and agricultural production all reflecting the overall economic development of this period. Along with commoditization and monetization of the economy, monetary supplies and government financial behavior had increasing influence on the economy. The shortage of monetary supplies gave rise to three economic depressions: the early years of the Qing Dynasty, Jiaqing’s reign, and Daoguang’s reign. This study clearly indicates that the scholarly debate over the “stagnation” or “growth” of the Qing economy perhaps merely depends on the period of time and aspect of the economy one examines. The two viewpoints can be somewhat reconciled. Translated by Feng Mei from Qingshi Yanjiu 清史研究 (Studies in Qing History), 2008, (3): 24–43     

The Impact of Global Financial Crisis on the Mechanism of Economic Growth in Russia

A noted specialist on the Russian economy presents an assessment of the impact of the global financial crisis on the mechanism of the country's economic growth. Focusing on the demand side of the economic ledger, the author explores the question of whether Russia will be able to re-attain the high economic growth rates of the period from 2000 to 2007 after recovering from the crisis. The paper analyzes the sharp drop in production in 2008 and the first quarter of 2009, attributing most of the damage to liquidity problems and declines in the price of oil. Empirical evidence is based primarily on data collected by the author from the Central Bank of Russia and the country's federal bureau of statistics (Rosstat). Journal of Economic Literature, Classification Numbers: E010, E200, E660, F210, G010. 11 figures, 3 tables, 29 references.     

Core and Periphery in the Evolving Russian Economy: Integration or Isolation of the Far East?

An American social scientist explores the relations between core and periphery in the post-Soviet economy, using the Russian Far East as a case study. His analysis draws on Western and Russian conceptual literature on economic peripheries, as well as on the Russian periodical press and recent interviews with officials in the Far East (conducted during research in Primorskiy Kray in January-February 1996). A concluding section outlines policy options for regional development, either in concert with Moscow or through an independent course of action. 52 references. Journal of Economic Literature, Classification Numbers: O10, P2, R58.     

Trans-border Exchange between Russia and China: The Case of Blagoveshchensk and Heihe

Two Russian-trained geographers investigate the multiple and largely informal and illicit forms of exchange between two provincial cities of roughly similar size located on opposite banks of the Amur River, namely Blagoveshchensk, in Russia's Far East, and Heihe, in neighboring northeast China. The study is based on interviews and field observations from 2002 to 2009 in Blagoveshchensk, as well as official statistics from the relevant Russian and Chinese provincial governments. Particular attention is focused on the activities and treatment of Chinese guest workers comprising a material component of the labor force in Amur Oblast (e.g., in construction and agriculture), unregistered Chinese entrepreneurs in retailing and catering, and trans-border logging operations of Chinese timber/wood products companies. Also covered are the activities of visiting Russian nationals in Heihe and the extralegal activities of Russian entrepreneurs and bureaucrats. Journal of Economic Literature, Classification Numbers: F20, J61, O17, O18. 5 figures, 1 table, 50 references.