Russia is considered a “mafia state” by most researchers in the West that study their methodology of governance. As a result, I suspect one major factor why Russia hasn’t completely collapsed is there is a massive black market propping up their highly non-traditional economy.
I’d guess that it trades with countries that don’t give a shit what the USA or Europe thinks, and its big enough to produce most of what it needs itself.
Because for every 1 sanction, there are 3 workarounds.
For instance, they are using Belarush to import a few things.
Simple, just one word – China
TLDR:
Proxy countries buy and sell for Russia, prices are not as good and their economy still bleeds.
But from the article what i got is:
* **Central bank’s quick action:** The decisive actions of Russia’s central bank helped to stabilize the ruble and limit the impact of sanctions.
* **Finding new markets:** Russia has found new trading partners to replace Western ones, notably China.
* **Alternative supply chains:** Russia has adapted and found ways to obtain Western goods despite sanctions.
* **Focus on the war effort:** Russia is capable of continuing its war machine for at least another year or so due to reserves and its dedication to defense spending.
The average Russian spends almost 30% of their income on food and the average salary is around $15k a year. How buckled are you wanting?
War economy and centralisation of powers.
A lot can be done with authority concentrated in stubborn hands.
The usual checks and balances, parliamentary or civil society, simply don’t exist to keep that kind of executive action in check.
That being said, spending what, 35% of the federal budget on defence, conscirpting able bodied men (in a country with atrocious demographics) will have consequences down the line. This is a massive opportunity cost.
Their GDP numbers may look great on surface, but how much of that is churning out bmps and small arms as opposed to cars, chips, and training medical personnel keeping people healthy and in the labour market?
Sanctions do more harm on the enforcer long term than on the country being punished.
This post is sponsored by Poo-tin.
It is declining a lot. You can see that by the value of the ruble over the last year declining heavily.
Nothing is a everything or nothing like it is often presented on the news. It takes long years. It’s not going to colapse over night. But the sanctions are effective.
2.6% percent growth for a developing nation is a good thing? China is at 5% and they’re in the middle of the worst economic crisis they’ve had in decades.
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Russia is considered a “mafia state” by most researchers in the West that study their methodology of governance. As a result, I suspect one major factor why Russia hasn’t completely collapsed is there is a massive black market propping up their highly non-traditional economy.
I’d guess that it trades with countries that don’t give a shit what the USA or Europe thinks, and its big enough to produce most of what it needs itself.
Because for every 1 sanction, there are 3 workarounds.
For instance, they are using Belarush to import a few things.
Simple, just one word – China
TLDR:
Proxy countries buy and sell for Russia, prices are not as good and their economy still bleeds.
But from the article what i got is:
* **Central bank’s quick action:** The decisive actions of Russia’s central bank helped to stabilize the ruble and limit the impact of sanctions.
* **Finding new markets:** Russia has found new trading partners to replace Western ones, notably China.
* **Alternative supply chains:** Russia has adapted and found ways to obtain Western goods despite sanctions.
* **Focus on the war effort:** Russia is capable of continuing its war machine for at least another year or so due to reserves and its dedication to defense spending.
The average Russian spends almost 30% of their income on food and the average salary is around $15k a year. How buckled are you wanting?
War economy and centralisation of powers.
A lot can be done with authority concentrated in stubborn hands.
The usual checks and balances, parliamentary or civil society, simply don’t exist to keep that kind of executive action in check.
That being said, spending what, 35% of the federal budget on defence, conscirpting able bodied men (in a country with atrocious demographics) will have consequences down the line. This is a massive opportunity cost.
Their GDP numbers may look great on surface, but how much of that is churning out bmps and small arms as opposed to cars, chips, and training medical personnel keeping people healthy and in the labour market?
Sanctions do more harm on the enforcer long term than on the country being punished.
This post is sponsored by Poo-tin.
It is declining a lot. You can see that by the value of the ruble over the last year declining heavily.
Nothing is a everything or nothing like it is often presented on the news. It takes long years. It’s not going to colapse over night. But the sanctions are effective.
2.6% percent growth for a developing nation is a good thing? China is at 5% and they’re in the middle of the worst economic crisis they’ve had in decades.