RUSSIA

History

• The Tsarist regime• Bolshevik revolution (1917)• Lenin (1917-24)• Stalin (1924-53)• Gorbachev (1985-91)• Demise of the USSR– Yeltsin (1991-99)– Putin(2000-

Political Economy• From communism to capitalism– Economic assets owned by the state– Mass education and low inequality

• 1985- 1992: Gorbachev’s limited reforms• 1992- Yeltsin’s «shock therapy»– Privatizing SOEs– Opening economy to foreign investors

Political Economy

• The rise of the oligarchs– Loans for shares– Russian capitalists with connections

• Agricultural production declined, imports replaced domestic products

Which is why the recent food sanctions are important for Russia

Political Economy

• Russian economy heavily reliant on gas• Resource curse: – corrupt politics– unstable terms of trade, because the prices of

natural resources fluctuate widely. – hinders development of competitive

manufacturing• 1998 economic crisis

Political Economy

• Putin and the oligarchs• Media, Yukos allegations of tax evasion– Press freedom 148/180 (world press freedom index)

• Corruption: state capture• Firms shaping laws

• Cutbacks in welfare programs• Weak tradition of individual entrepreneurship• Reliance on personal trust not contracts

Governance and Policymaking• A strong President– To lead in a period of transition– Legacy of a strong state tradition

• Dual executive– President and the Prime Minister

• Bicameral legislature: Federal Assembly• The Soviet legacy of hierarchical organization• Communist Party of the Soviet Union

• Party dominance then individual leaders’ dominance today

Governance and Policymaking• 1993 Constitution: Semi-presidential system• President: – Directly elected for 6 years, 2 consecutive terms.– foreign affairs, security, relations with regions– Appoints the PM, approval of the Parliament lower

house (Duma) • If Duma rejects the PM three times, President can

dissolve it

– Proposes members of Constitutional, Supreme courts, which are approved by Duma

– Right to call a state of emergency, call referendums

Governance and Policymaking

• Presidential decrees have force of law until the Parliament passes a formal legislation• Yeltsin used decrees more often than Putin

• Impeachment for treason is possible – Federal Assembly+ Supreme Court+Constitutional

Court• PM: economy and related areas– PM can be removed by Duma with two

consecutive votes of no confidence

Governance and Policymaking

• State may own control of shares in key firms.• Gazprom: federal government owns 50% • Several TV stations are publicly owned• Judiciary– The Constitutional Court is cautious not to

confront the executive

Governance and Policymaking

• Federation according to constitution• Central government- constituent units have

powers– Constituent units: republics, regions, districts,

cities• Ethnic groups are regionally concentrated– Central government sensitive relationship with

ethnic republics, e.g. Tatarstan, Chechnya– President appoints regional heads since 2004

Governance and Policymaking

• Legislature• Duma (Lower chamber): 450 seats– Since 2005– directly elected by proportional representation– 7% threshold

• Federal Council (upper chamber): 170 seats, 2 each unit– 1993: directly elected representatives– 2000: one appointed by the regional head, the other by

the regional legislature

Legislative Process

DUMA

FEDERAL COUNCIL

ApproveIf rejects, Duma can override by 2/3 votes

PRESIDENT

2/3 votes of both chambersveto

Security and governance

Beslan hostage crisis 2004

Security and governance

• Putin used Beslan (N. Ossetia) as an excuse to further centralize power

• Foreign-funded NGOs are restricted

Political Parties

• Left (social state slow reforms)• Nationalist (no westernization)• Liberal (rapid market reforms and integration

with West) • Centrist: United Russia mix of all