Western sanctions have left Russia in dire financial circumstances — stuck somewhere between recession and stagnation. Though proven solutions exist for what now ails Russia, President Vladimir Putin’s geo-strategic and political choices have rendered these traditional economic approaches unworkable.
Under normal market conditions, for example, the recent collapse of the Russian ruble should have spurred exports, domestic manufacturing and foreign investment because a weaker currency makes Russian business more competitive both domestically and internationally. Yet a dramatic rebound in any of those economic arenas remains unlikely not just due to sanctions but also because of the entrenched structural weaknesses of Putin’s system.
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