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Russia's Bad Relations With the West Makes Good Economic Sense

The re-emergence of a liberal former finance minister as Presidential economic advisor alarms some observers who believe that Russia gains nothing from integrating its economy into the global capitalist system

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This post first appeared on Russia Insider


The author is a prominent political analyst.


Recently, during the Russian Presidential Economic Council meeting in Moscow, Alexei Kudrin advised the president to decrease geopolitical tensions for the sake of the Russian economy. Incredible.

<figcaption>Alexey Kudrin, ex-finance minister and currently economic advisor to the President is popular in the West and next to hated in his own country</figcaption>
Alexey Kudrin, ex-finance minister and currently economic advisor to the President is popular in the West and next to hated in his own country

Kudrin is clearly peddling "liberal hope" in conversations with the so-called tyrant.

But here are the facts:

If you have poor relations with the West, you need an army. If you need an army, you will also need defense contracts and a Military/Industrial Commission.

If you have poor relations with the West, you will need doctors and engineers in the event of war.

If you have poor relations with the West, you will need to develop various research and technology gimmicks to beat the enemy, and other tricks to neutralize its effort to destroy you. That means you will need science and scientists, and even if you steal technologies instead of inventing your own, you will need scientists to decipher a stolen drawing.

If you need the defense ministry, doctors, engineers and scientists, you will need an educational system.  

And if you have poor relations with the West, you will need industry and agriculture, because they won’t sell you anything, since you are an enemy. Some things will be under sanctions.

And if you have poor relations with the West, you will need your own financial system, so you will not need to take money from the West, which will surely cut you off.

That means you will need officials, the most disgraceful of which will betray you and move to the West in order not to lose their money. You need people to develop defense, science and so on down the list in order to achieve at least a few decent results.

If you have poor relations with the West, you will need a national elite.

Besides the elite, you will need people to work, once you begin to revive the army, industry and education. Migrant workers won’t do.

But if you need all the above, you will need to invest money, and create a domestic market and domestic demand.

Since this provokes economic growth, as grandpa Keynes taught us – and he was, to put it mildly, smarter than grandad Kudrin.  Besides, Kudrin isn’t really a grandad but an enemy.

If you need your own country, you will need your own economy. If you have your own economy, you will invest in it, instead of buying US securities. If you invest money in it and care for it, you will have economic growth. Because if you have poor relations with the West, you won’t hope for better ones.

If you have good relations with the West, you will have a house in London, a yacht on the right bank and a billion in the bank No, two billion. No…Many billions in your account.

And you won’t need anything else.

Actually you don’t need anything else.

Although you will have gratitude.

To Kudrin, a good economist.

There will be no economic growth, but your personal economy will grow.


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