Russia : The state and future of the economy

Abstract

This paper assesses the current state and future prospects of the Russian economy after the August 1998 financial crisis.The industrial growth visible since Autumn 1998 may well be unsustainable, as it is based on currency undervaluation and low real wages.Over a longer period, the characteristics of the economic system that has emerged in Russia cast a long shadow over the prospects of growth and prosperity.In fact, the whole country should be rebuilt.