By Piotr Dutkiewicz, Dmitri Trenin
In Russia, a bunch of prime Russian intellectuals and social scientists subscribe to with best researchers from world wide to envision the social, political, and financial transformation in Russia. This well timed and critical publication of unique essays makes transparent that neither politics nor economics on my own holds the main to Russia's destiny, offering severe views on demanding situations dealing with Russia, either in its family regulations and in its diplomacy. It additionally explores how worldwide order—or disorder—may boost over the arrival decades.Contributors contain: Oleg Atkov, Timothy J. Colton, Georgi Derluguian, Mikhail okay. Gorshkov, Leonid Grigoriev, Nur Kirabaev, Andrew C. Kuchins, Bobo Lo, Roderic Lyne, Vladimir Popov, Alexander Rahr, Richard Sakwa, Guzel Ulumbekova, Vladimir I. Yakunin, Rustem Zhangozha.
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Additional info for Russia: The Challenges of Transformation (Possible Futures)
In the first phase (in the period before the voucher privatization of 1993–94 and 20 Dutkiewicz the “loans for shares” auctions of 1995–96), political access was exchanged for profit and the security of spoils (on the trading block were import/export licenses, all kinds of permits, privatization of real estate, quotas, and state contracts). Russian capitalists started to consolidate their position as early as 1992–93 by using an innovative, cross-sectoral merger and acquisition strategy called FIGs (Financial Industrial Groups).
Russia is far away (institutionally/legally and strategically, as far as the state is concerned) from the EU. This also would mean reshaping Russian foreign policy and some portion of the elite’s mentality; but as Russian economic interests are located between Europe and Asia, this becoming a “compatible state but not within the same system” might be a sustainable choice. It would give Russia a firm place within the EU quasi-empire, even if it has been dented recently by deep fiscal problems, guarantee its security, offer better access to the EU market, reinforce Russia’s position as a European power, and form a natural counterbalance to the “China vector” (see Bobo Lo’s chapter in this volume).
In 2003, according to a World Bank study, twenty-three oligarchs controlled 35 percent of the industrial output (the state had 25 percent) and 17 percent of the banking system assets (the state had 26 percent). In the United States in the late 1990s, the fifteen richest families controlled around 3 percent of GDP, while in Japan it was 2 percent. 17 However, it is unlikely that there are many countries in which the oligarchs, first of all, started with nothing and became “world leaders” in only ten years and, Missing in Translation 17 second, openly pitted themselves against the government, in effect demanding its privatization.