Staunton, March 8 – Russia does not produce enough manufactured goods or have a large enough domestic market to take advantage of the new wave of protectionism in the world, Sergey Shelin says; and its government is unwilling or indeed unable to eliminate domestic regulatory constraints on production that might lead to a boom.
As a result, and despite Kremlin boosterism, Russia is not in a position to take advantage of either of the two main economic changes now echoing through the world; but instead it will remain isolated from and increasingly lag beyond the economies of other countries, the Rosbalt commentator says (rosbalt.ru/blogs/2017/03/07/1597098.html).
At the same time, however, Russia won’t be much affected by any growth in international protectionism because it simply doesn’t produce enough manufactured goods or have a large enough market to make a difference; and it doesn’t have the pressures on it to eliminate domestic regulatory restrictions – or at least pressures that the Kremlin feels the need to take seriously.
There is thus no basis for considering that Russia might benefit from behaving like the US or China: it simply isn’t in the same league. But “this doesn’t mean that we do not have any models in the world,” Shelin argues, only that they are not countries Russia typically likes to compare itself with – Myamnar, North Korea and Iran.
These are countries to exist by isolating themselves from the international economy and that fall further and further behind as a result. They don’t have any chance of a great economic leap forward anytime soon – and neither, the Rosbalt commentator says, does Russia, whatever its propagandists say.