Welcome!

News Feed Item

Russia Risks Becoming a 'Raw Materials Colony' for China

VADUZ, Liechtenstein, February 4, 2014 /PRNewswire/ --

http://www.worldreview.info

Russia's economy is being crippled by Soviet-era industrial policies and is in dire need of modernisation, writes Professor Stefan Hedlund in World Review. But the bulk of the industrial base is located in company towns, known as monotowns, that epitomise the federation's countrywide industrial decline.

'Unemployment in these towns of sometimes hundreds of thousands is often double or even higher than the national average of 5.7 per cent. They embody Russia's current predicament,' he says.

A comparison between the respective track records of the Russian and the Chinese economies over the past two decades demonstrates the consequences of Russia's reliance on its natural resources.

'While Beijing has achieved rapid technological change, Moscow has faced increasing 'primitivisation'. Russian economists fear that the Russian economy will be reduced to little more than a raw materials colony for the voracious Chinese economy,' he adds.

The monotowns' growing desperation is seen by many analysts as a ticking timebomb ready to explode in a wave of nationwide protests.

'Many of the towns were built around a single enterprise which was obliged to assume responsibility ranging from housing, childcare and pensions, to communal heating and the local hockey rink,' explains Professor Hedlund. 'When the Soviet Union collapsed in 1991, and central economic planning ceased, foreign investors wishing to buy into the huge metals industries and paper mills that were put up for privatisation discovered they received more than they bargained for. Local authorities and local residents expected the foreigners to assume responsibility for the full package of social obligations.'

From a political point of view, it is tempting to allow the monotowns to muddle on, operating at a loss, providing employment and keeping the lights on in towns that do not have a future. 'But from an economic angle this translates into allowing labour and capital resources to remain locked into failing enterprises, to the detriment of future economic development,' he says.

The non-decision on what to do with the monotowns provides perhaps the most important reflection on how the Russian government is searching - fruitlessly - for a new economic growth model and development strategy.

Read the full World Review report here

About the Author

World Review author Professor Stefan Hedlund is Research Director at the Centre for Russian and Eurasian Studies, at Uppsala University, Sweden.

Copyright

Please attribute any copyright to © 2014 Geopolitical Information Service, and provide a hyperlink to the http://www.worldreview.info website.

Contact information

Social Media

Click here to join World Review on Facebook

Follow us on Twitter @worldreviewinfo

Social Media Editor
Sian Claire Owen
Email: [email protected]
Tel: +44(0)7962-383019

General information about World Review and Geopolitical Information Service AG
Email: [email protected]
Tel: +423-231-19-41
Headquarters: Herrengasse 21, 9490 Vaduz, Liechtenstein


SOURCE World Review

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Information technology (IT) advances are transforming the way we innovate in business, thereby disrupting the old guard and their predictable status-quo. It’s creating global market turbulence. Industries are converging, and new opportunities and threats are emerging, like never before. So, how are savvy chief information officers (CIOs) leading this transition? Back in 2015, the IBM Institute for Business Value conducted a market study that included the findings from over 1,800 CIO interviews ...
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
"We host and fully manage cloud data services, whether we store, the data, move the data, or run analytics on the data," stated Kamal Shannak, Senior Development Manager, Cloud Data Services, IBM, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
While DevOps most critically and famously fosters collaboration, communication, and integration through cultural change, culture is more of an output than an input. In order to actively drive cultural evolution, organizations must make substantial organizational and process changes, and adopt new technologies, to encourage a DevOps culture. Moderated by Andi Mann, panelists discussed how to balance these three pillars of DevOps, where to focus attention (and resources), where organizations might...
Zerto exhibited at SYS-CON's 18th International Cloud Expo®, which took place at the Javits Center in New York City, NY, in June 2016. Zerto is committed to keeping enterprise and cloud IT running 24/7 by providing innovative, simple, reliable and scalable business continuity software solutions. Through the Zerto Cloud Continuity Platform™, organizations can seamlessly move and protect virtualized workloads between public, private and hybrid clouds. The company’s flagship product, Zerto Virtual...
Some people worry that OpenStack is more flash then substance; however, for many customers this could not be farther from the truth. No other technology equalizes the playing field between vendors while giving your internal teams better access than ever to infrastructure when they need it. In his session at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will talk through some real-world OpenStack deployments and look into the ways this can benefit customers of all sizes....
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @CloudExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
Due of the rise of Hadoop, many enterprises are now deploying their first small clusters of 10 to 20 servers. At this small scale, the complexity of operating the cluster looks and feels like general data center servers. It is not until the clusters scale, as they inevitably do, when the pain caused by the exponential complexity becomes apparent. We've seen this problem occur time and time again. In his session at Big Data Expo, Greg Bruno, Vice President of Engineering and co-founder of StackIQ...
The security needs of IoT environments require a strong, proven approach to maintain security, trust and privacy in their ecosystem. Assurance and protection of device identity, secure data encryption and authentication are the key security challenges organizations are trying to address when integrating IoT devices. This holds true for IoT applications in a wide range of industries, for example, healthcare, consumer devices, and manufacturing. In his session at @ThingsExpo, Lancen LaChance, vic...
"Plutora provides release and testing environment capabilities to the enterprise," explained Dalibor Siroky, Director and Co-founder of Plutora, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
FinTech is the sum of financial and technology, and it’s one of the fastest growing tech industries. Total global investments in FinTech almost reached $50 billion last year, but there is still a great deal of confusion over what it is and what it means – especially as it applies to retirement. Building financial startups is not simple, but with the right team, technology and an innovative approach it can be an extremely interesting domain to disrupt. FinTech heralds a financial revolution that...
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here