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Big Problems in Russia Starting in 2009

Posted by Matt in December 3rd, 2008

Experts see a very serious possibility of an abrupt collapse of the living standard and economic disintegration leading to social unrest, eventually followed by political upheaval.

As Tayevsky put it, “There will not be a crisis in Russia. There will be something immeasurably worse. But decent words for what it will be have not yet been devised, at least in the Russian language.”

Mismanagement of Russian Economy Could Lead to Social Unrest

Russia’s crisis has nothing to do with the U.S. or global recession, Gontmakher told Eurasia Daily Monitor on November 12. Assertions that the U.S. has crippled us are pure propaganda. Whatever is happening over here, we have done with our own hands. Gontmakher believes that Russia’s systemic crisis resulted from the state’s polices adopted as of 1999, when Putin rose to power. These policies unhinged Russia’s economy long before Global recession started.

Top Russian economists recently looked at five possible scenarios, Gontmakher says. All of them, except modernization and immediate reform, would lead to a catastrophe. This single solution that could still save this country is not, however, in the cards under the conditions of the existing state, which is afraid of losing its monopoly of power. The consequences will be dire, Gontmakher says. He believes that the country may pass the point of no return sometime in 2009.

Experts see a very serious possibility of an abrupt collapse of the living standard and economic disintegration leading to social unrest, eventually followed by political upheaval.

As Tayevsky put it, “There will not be a crisis in Russia. There will be something immeasurably worse. But decent words for what it will be have not yet been devised, at least in the Russian language.”

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Map for Moscow, Russia

[Countries link to CIA Factbook. States link to Wikipedia.]



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