SYS-CON MEDIA Authors: Elizabeth White, PagerDuty Blog, Michael Jannery, Pat Romanski, Liz McMillan

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
"ElasticBox is an enterprise company that makes it very easy for developers and IT ops to collaborate to develop, build and deploy applications on any cloud - private, public or hybrid," stated Monish Sharma, VP of Customer Success at ElasticBox, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
Want to enable self-service provisioning of application environments in minutes that mirror production? Can you automatically provide rich data with code-level detail back to the developers when issues occur in production? In his session at DevOps Summit, David Tesar, Microsoft Technical Evangelist on Microsoft Azure and DevOps, will discuss how to accomplish this and more utilizing technologies such as Microsoft Azure, Visual Studio online, and Application Insights in this demo-heavy session.
Entuity®, a provider of enterprise-class network management solutions, today announced that it solidifies its position as a market leader through global enterprise customer acquisitions and a refined channel strategy. In 2014, Entuity increased new license revenues in EMEA by over 75 percent, and LATAM by over 125 percent as customers embraced Entuity for its highly automated solution and unified architecture. Entuity’s refined channel strategy focuses on even deeper strategic alignment with ke...
We are all here because we are sold on the transformative promise of The Cloud. But what good is all of this ephemeral, on-demand infrastructure if your usage doesn't actually improve the agility and speed of your business? How must Operations adapt in order to avoid stifling your Cloud initiative? In his session at DevOps Summit, Damon Edwards, co-founder and managing partner of the DTO Solutions, will highlight the successful organizational, process, and tooling patterns of high-performing c...
Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world.
The 4th International DevOps Summit, co-located with16th International Cloud Expo – being held June 9-11, 2015, at the Javits Center in New York City, NY – announces that its Call for Papers is now open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's large...
“We help people build clusters, in the classical sense of the cluster. We help people put a full stack on top of every single one of those machines. We do the full bare metal install," explained Greg Bruno, Vice President of Engineering and co-founder of StackIQ, in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
In this demo at 15th Cloud Expo, John Meza, Product Engineer at Esri, showed how Esri products hook into Hadoop cluster to allow you to do spatial analysis on the spatial data within your cluster, and he demonstrated rendering from a data center with ArcGIS Pro, a new product that has a brand new rendering engine.
"Blue Box has been around for 10-11 years, and last year we launched Blue Box Cloud. We like the term 'Private Cloud as a Service' because we think that embodies what we are launching as a product - it's a managed hosted private cloud," explained Giles Frith, Vice President of Customer Operations at Blue Box, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
CloudBees, Inc., has announced a $23.5 million financing round, led by longtime CloudBees investor Lightspeed Venture Partners. Existing investors Matrix Partners, Verizon Ventures and Blue Cloud Ventures also participated in the round. The latest funding announcement follows earlier rounds of $4 million, $10.5 million and $10.8 million, bringing the total investment in CloudBees to just under $50 million since the company’s inception in 2010. Previous venture investment rounds were led by Ma...
“We are strong believers in the DevOps movement and our staff has been doing DevOps for large enterprise environments for a number of years. The solution that we build is intended to allow DevOps teams to do security at the speed of DevOps," explained Justin Lundy, Founder & CTO of Evident.io, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Media announced that Splunk, a provider of the leading software platform for real-time Operational Intelligence, has launched an ad campaign on Big Data Journal. Splunk software and cloud services enable organizations to search, monitor, analyze and visualize machine-generated big data coming from websites, applications, servers, networks, sensors and mobile devices. The ads focus on delivering ROI - how improved uptime delivered $6M in annual ROI, improving customer operations by minin...