Russia’s crony capitalism disincentivises economic reform, says Konstantin Sonin
But without change Vladimir Putin will lose the war in Ukraine, reckons the Russian economist
THE EMERGING stalemate in the Russia-Ukraine war poses huge challenges for Russia even as it offers opportunities to Ukraine. It gives the latter country time to revitalise its army, which could eventually force Russia out of its territories. That is because although Vladimir Putin is powerful politically, Russia’s economic system is impervious to reform. This means that even though the Russian economy will survive sanctions in the short term, it will not be able to sustain a national war effort and simultaneously maintain Russians’ quality of life over the long term.
This article appeared in the By Invitation section of the print edition under the headline “Russia’s crony capitalism disincentivises economic reform, says Konstantin Sonin”
From the September 10th 2022 edition
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