
Contents
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The History of Russian and Soviet Resource Dependence The History of Russian and Soviet Resource Dependence
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Resource Rents Resource Rents
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Defining Rents Defining Rents
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Measuring Resource Rents Measuring Resource Rents
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The Size of Rents The Size of Rents
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Rent and its Components Rent and its Components
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Formal Rent Components Formal Rent Components
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Formal Taxes Formal Taxes
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Profits Profits
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Informal Rent Sharing Informal Rent Sharing
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Price Subsidies Price Subsidies
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Informal Taxes Informal Taxes
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Excess Costs Excess Costs
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A Special Problem A Special Problem
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Rents and the Economic System Rents and the Economic System
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Aggregate Relationship Aggregate Relationship
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Structural Impact: The Inverted Funnel Structural Impact: The Inverted Funnel
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Rent Management Systems Rent Management Systems
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History of RMSs History of RMSs
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Conclusion Conclusion
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Notes Notes
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References References
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13 Russia’s Dependence on Resources
Get accessClifford G. Gaddy is a Senior Fellow in the Brookings Institution’s Foreign Policy Studies and its Global Economy and Development Program, Washington, D.C. He studies the Russian economy and politics.
Barry W. Ickes is a Professor and Acting Head in the Department of Economics at Pennsylvania State University, University Park, and a Non-Resident Senior Fellow at the Brookings Institution in Washington, D.C. His research focuses on the Russian economy and the economics of transition.
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Published:01 October 2013
Cite
Abstract
We study the role of resource dependence in Russia. Russia is the world’s leading producer of hydrocarbons and a number of other natural resources. Russia has been dependent on its resource wealth since the time of Peter the Great. The Soviet economic model was characterized by extensive growth, that is, by the accumulation of inputs, most notably natural resources. Today Russia remains highly dependent on its resource wealth. We measure the size of resource rents and document the role of resource abundance for Russia’s growth for the past forty years. We also analyze the political economy of dependence on resource rents. The system by which resource rents are managed has evolved from the early Soviet period through the 1990s to the present. We trace that evolution, describe the nature of the current rent management system, and examine the consequences of that system for Russia’s future economic growth.
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