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Political Constraints on Modernization of National Economy

Author

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  • Urnov, M.

    (National Research University Higher School of Economics, Moscow, Russia)

Abstract

The main political constraints blocking modernization of Russian economy are a low quality of official concepts of modernization, prevalence of authoritarian values and attitudes in Russian political culture, and excessive military expenditures. The recently formulated economic doctrines tend to minimize the import of technology and to restrict access of foreign capital into the most attractive industries. The most likely effect of such doctrines (if implemented) is - at best - stagnation, and at worst - the prevalence of an archaic economy, which supplies low-quality products and maims the environment. In Russian political culture today one can see a prevalence of a conflicting mixture of right and left authoritarian value-orientations, poorly compatible with requirements of the XXI century modernization. In 2010-2014 Russian military expenditures increased steadily. Meanwhile, limited by the GDP size, these expenditures are not able to provide Russia with a place among the world leading military powers, but they can easily undermine the financial basis of Russian modernization. The presence of these constraints is largely due to the worldview of a significant part of Russian political elite. And this cultural problem is much more complicated than any political issue.

Suggested Citation

  • Urnov, M., 2015. "Political Constraints on Modernization of National Economy," Journal of the New Economic Association, New Economic Association, vol. 28(4), pages 183-188.
  • Handle: RePEc:nea:journl:y:2015:i:28:p:183-188
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    Keywords

    economics; Russia; political constraints; concepts of modernization; political culture; military spending; quality of elite;
    All these keywords.

    JEL classification:

    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • P20 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - General
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H19 - Public Economics - - Structure and Scope of Government - - - Other
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War

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