126 oil ddw 2012 1 russia uniqueness 127 last printed

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: areas. (For more on infrastructure development in emerging economies, see Tarun Khanna and Krishna G. Palepu’s “Emerging Giants: Building World-Class Companies in Developing Countries,” HBR October 2006.) Of course, it doesn’t help that most of its citizens are used to being supported by the government and, until very recently, were not entirely familiar with the hurly-burly of entrepreneurship and global competition. Having learned hard lessons from the most recent era of inexpensive oil, Abu Dhabi’s leaders want change: a future in which their incomes aren’t tied so inextricably to the volatile price of a commodity. In particular, they want a developed industrial and service economy with meaningful jobs and leadership opportunities for citizens. But they know they can’t mimic the low-wage labor path followed by scores of countries including China and South Korea. That would take far too much time and require far too much change to underlying institutions. Nor can Abu Dhabi follow the Indian example of relying on bottom-up indigenous enterprise development. It lacks the deep pools of highly skilled technical talent and large labor forces that characterize at least some Indian metropolises. 126 Oil DDW 2012 1 ***Russia Uniqueness*** 127 Last printed 9/4/2009 7:00:00 PM Oil DDW 2012 1 Russian Econ High 128 Oil DDW 2012 1 Russia’s economy is strong due to oil revenue Scott Rose and Agnes Lovas, 2011, Putin Must Beat Own Economic Record As Russian Goldehttp://www.bloomberg.com/news/2011-12-21/putin-must-beat-his-own-economicrecord.html may be his own toughest competition in next year’s presidential race. Putin, now prime minister, is trying to persuade voters he can repeat the performance of his first two terms in the Kremlin, when the economy grew at an annual average of 7.1 percent from 2000 to 2008. Gross domestic product in Russia, the world’s biggest supplier of energy, may rise 4.5 percent this year, according to government forecasts, even after a boost from record oil prices. Russia’s main export blend of the fuel has averaged $109 a barrel in 2011, more than the $46 a barrel in 2000-2008. Putin’s failure as prime minister to match the burst of growth under his presidency may push him to raise spending on favored groups, such as the military, to woo support before March 4 elections. United Russia, the party Putin chairs, won less than half the balloting in a parliamentary vote Dec. 4. Tens of thousands of people protested the following weekend in Moscow after international observers said there was evidence of ballot-box stuffing. More protests are planned for Dec. 24. “His authoritarianism is precipitated on his ability to deliver increased welfare to a large portion of the society,” said Fredrik Erixon, director of the European Centre for International Political Economy in Brussels, in a phone interview. “If he doesn’t do that, his political model is going to be damaged.” ‘Golden Decade’ Putin’s ascent to the presidency in 2000 marked the beginning of a “golden d...
View Full Document

Ask a homework question - tutors are online