Modernization is one of the most important issues of Russian politics and economy. Even though transformation is completed, but the Russia development is still lagged behind compared to Western countries. One of these causes is its highly resource dep...
Modernization is one of the most important issues of Russian politics and economy. Even though transformation is completed, but the Russia development is still lagged behind compared to Western countries. One of these causes is its highly resource dependent economic structure. In order to diversify the economic structure, the one strongly insist the role of the state, the others emphasis that political reform should be needed to reform the economic structure.
As Putin became the president again, the priority of government policy is the regional development, including the Russian Far East and the Black Sea’s regions, and the Eurasian Economic Union (EEU) instead of the modernization. Therefore, the progress of modernization is not very active as much as before. However, as the modernization aims to maximize the efficiency of capital accumulation from energy sector and invest in the high-tech industry in which Russia has probably competitive advantage. That is, the modernization desires to create new concept of mechanism for capital accumulation.
The performance of modernization policy in Russia is not very much because there are some empirical evidences that has shown the negative aspect of economic changes in Russia. The author argues the modernization requires more complicated policy, therefore, the modernization efforts should be designed in a more comprehensive framework with bold political reform.