Economics

Media: Russian economy will collapse because of nationalism

8 april 2015 | 11:16

Kremlin will not be able to make necessary reforms to improve the economy until everything "non-Russian" is perceived as hostile. 

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Russian nationalism will not allow Russian economy to develop.
A year after the war in Ukraine, a word to characterize the situation in Russia can be changed from "crisis" to "disaster." This is what awaits the Russian economy because of fierce radical nationalism.

A columnist for the German newspaper Frankfurter Allgemeine, Benjamin Tribe writes about this in his article.

He emphasizes that political disaster in Russia occurred when Russian troops invaded Ukraine. And it seems that the confrontation between Russia on the one hand and Ukraine and the West on the other hand will not end soon. The author points out that the war in the Donbas becomes a frozen conflict.

According to the author, the decline of the Russian economy began in 2012, two years before the war in Ukraine.

"In the 2000s, rising oil prices filled the Russian treasury. As a result the real wages and consumption began to increase. But, Russian authorities failed to create a modern diversified economy," – says the columnist.

And now, when oil prices had collapsed, and the West had imposed sanctions, the Russian economy grew by only 0.6% for the previous year.

The author summarizes saying that if the war in eastern Ukraine is not over, the economic development of Russia will be paralyzed because of sanctions and political stagnation.

Read more: Survey: Most Russians want to restore Soviet Union, planned economy and autocracy

"The reforms to attract foreign investment, expanding business freedom, reducing state intervention in the economy, a more liberal society – this should not be expected when the Russians worship patriotism; when everything non-Russian is declared potentially dangerous, and isolation is seen as the best way," – concludes the article.

At the same time, recent surveys have shown that majority of Russians want a Soviet-style planned economy. 

Source: Frankfurter Allgemeine Sonntagszeitung

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