Monday, December 7, 2009

Economy as a science

This afternoon I came across this news blurb on ITAR-TASS. Funny. A big conference where more than 1,000 papers on the Russian economy will be presented. The fundamental problems of the economy are not so mysterious or technical. Excessive reliance on raw materials, especially oil & gas. Corruption. And a lack of democracy that allows this corruption to survive and even thrive. The problem is not knowing the technical problems of the Russian economy. The problem is getting the people who benefit from the current state of affairs to relinquish their privileges for the sake of the country as a whole. It's a mess. I wish them every success - but it will take more than conferences to fix Russia's economy.