Russia after the Global Financial Crisis

Two prominent American specialists on the Russian economy present a fundamental analysis of basic economic factors explaining how the global financial crisis has played out in Russia and its implications for the country's future. More specifically, the authors examine the consequences of Russia's dependence on and addiction to resource (oil and gas) rents and of the management system put in place under Vladimir Putin to maintain, secure, and distribute these rents. They then investigate how each of these factors has emerged from the crisis and how it might evolve in the years ahead. Focusing on the distinction between rent dependence and addiction, the authors question the conventional wisdom that diversification of Russia's economy (away from oil and gas) is a desirable objective that will render it less vulnerable to external shocks. Journal of Economic Literature, Classification Numbers: E020, F020, G010, O130. 15 figures, 44 references.     

Financial Constraints on the Modernization of the Russian Economy

A British economist examines the main obstacles to economic modernization in the Russian economy. After arguing that increased investment is required if the Russian economy is to undergo significant modernization, he presents a framework for identifying binding constraints on such investment. A number of popular explanations of Russia's persistent underinvestment are considered, with particular emphasis on financial constraints. Recent Russian government proposals to restructure the financial system are then assessed in light of their implications for the wider economic modernization. On the basis of the growth diagnostics framework employed in the paper, the author makes the case that the binding constraint on investment in Russia is the poor quality of domestic financial intermediation.     

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.     

Impact of the Global Economic Crisis on China's Migrant Workers: A Survey of 2,700 in 2009

An Australian geographer examines the effects of the global financial crisis on China's migrant workers, based on a recent survey of over 2,700 such workers conducted during January-February 2009. The author focuses on the number of migrant workers returning to their home villages for the annual New Year holiday period, the types of workers that were laid off, options available to such workers upon losing employment, and the reasons underlying their subsequent moves. Implications of the findings for labor policy in China are briefly outlined and several directions for future research identified. Journal of Economic Literature, Classification Numbers: E240, G010, J610, J690. 7 tables, 68 references.     

China's Nuclear Energy in Light of the Disaster in Japan

An American specialist on Russian agriculture examines that country's agrarian policy, as well as the agricultural sector more generally, one year into the presidency of Dmitriy Medvedev. Focusing on the three key policy issues—state financial support, state intervention in the grain market, and international food trade policy—he assesses the extent to which current policy represents a continuation of that prevailing during the presidency of Vladimir Putin. The author discusses the appointment of a new Agriculture Minister in 2009, which may signal a different approach to the management of the sector, and concludes with an assessment of the impact of the global financial crisis. Journal of Economic Literature, Classification Numbers: F130, Q100, Q170, Q180. 2 tables, 63 references.