Considering how frequently liberal western commentators knock Russia for its lack of business transparency, central government meddling in the market, and supposed lack of democracy, you'd be forgiven for assuming the place was in as big a mess as bottom of the ladder third world dictatorships like North Korea and Zimbabwe.
However, compared with the West's favourite ex-Soviet Union states, Ukraine and Georgia, which the West holds up as beacons of democracy and progress, Russia's in pretty good shape. According to the CIA world factbook, Russia ended 2007 with its eight straight year of economic growth, and a pretty healthy GDP per capita of $14,700 (US). In comparison, Ukraine's GDP per capita is about $6,900 and Georgia's a lowly $4,700.
Now sure, a lot of this new Russian wealth has come via rising oil and gas prices, but Russia is also doing better than other oil-and gas rich ex-Soviet countries like Azerbaijan and Kazakhstan.
While Ukraine and Georgia have been idly dreamy of pie-in-the-sky western style democracies, Russia's taken a more down-to-earth Hobbsian approach to state building, emphasizing financial stability and basic law and order. The result has been sustained economic growth, higher pensions and fewer citizens on an all-potato diet.
Meanwhile political instability is once again threatening to undermine economic growth in the Ukraine, with prime minister Yulio Tymoshenko falling out with pro-western president Victor Yushchenko. Tymoshenko now wants to pursue a more pro-Russian stance and team up with Party of Region leader Victor Yanukovych.
Hopefully Ukraine can finally start to get its act together and reclaim its status as the bread basket of Europe, as opposed to being a basket case.
Sunday, September 28, 2008
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