March 19, 2021

Coming Up Roses


Coming Up Roses
Maybe the value of the ruble will rise again soon. Petar Milošević, Wikimedia Commons

Russia has apparently emerged victorious from the first year of the COVID-19 pandemic in two key ways: its vaccine has turned out to be highly effective even as Europeans struggle to get vaccinated, and its economy has turned out to be more resilient than most.

Moscow's Higher School of Economics (HSE), named after the London School of Economics, released a report showing how Russia's GDP remained happily consistent in 2020 relative to the rest of the world.

An ironic consequence of the 2014 economic sanctions against Russia is that the economy contracted well before 2020 and began preparing for the worst of times. According to this new research, this shift brought stagnation to the pandemic-era Russian economy rather than recession or depression.

Typically, Russia is hit worse by global economic problems. In the 2008-2009 recession, the world economy declined by (only?) .01%, while Russia's economy declined by 7.8%. Conversely, in 2020, the global economy receded by 3.5% and Russia came out looking better than the U.S., Japan, Germany, France, and Spain.

The HSE report outlines three key reasons for Russia's macroeconomic success: 1. The so-called "budget rule," 2. Business loans, and 3. State-sponsored businesses.

Russia had hedged against a falling oil price by "saving, not splurging" the revenue generated in periods of a high price per barrel. This is the "budget rule." It is the same kind of economic thinking that makes subsistence farmers invent ways to preserve surplus food for leaner times. The budget rule is smart, not sexy, policy; you will not see any $1.9 trillion stimulus packages coming out of Moscow.

The second key to Russia's economic success is giving businesses loans to cover salaries and lowering insurance premiums for businesses during the pandemic.

The third aspect is that more Russian businesses were already state-sponsored and larger than in the West. The service sector is also smaller in Russia.

Praise for Russia's economy has come from the International Monetary Fund and even The Moscow Times. Compare this to The Moscow Times' prediction last March that the pandemic might destroy Russia's "isolated" economy.

It turns out that isolation is an advantage when it comes to a global pandemic.

Like this post? Get a weekly email digest + member-only deals

Some of our Books

Fearful Majesty
July 01, 2014

Fearful Majesty

This acclaimed biography of one of Russia’s most important and tyrannical rulers is not only a rich, readable biography, it is also surprisingly timely, revealing how many of the issues Russia faces today have their roots in Ivan’s reign.

Woe From Wit (bilingual)
June 20, 2017

Woe From Wit (bilingual)

One of the most famous works of Russian literature, the four-act comedy in verse Woe from Wit skewers staid, nineteenth century Russian society, and it positively teems with “winged phrases” that are essential colloquialisms for students of Russian and Russian culture.

Driving Down Russia's Spine
June 01, 2016

Driving Down Russia's Spine

The story of the epic Spine of Russia trip, intertwining fascinating subject profiles with digressions into historical and cultural themes relevant to understanding modern Russia. 

Davai! The Russians and Their Vodka
November 01, 2012

Davai! The Russians and Their Vodka

In this comprehensive, quixotic and addictive book, Edwin Trommelen explores all facets of the Russian obsession with vodka. Peering chiefly through the lenses of history and literature, Trommelen offers up an appropriately complex, rich and bittersweet portrait, based on great respect for Russian culture.

The Little Humpbacked Horse
November 03, 2014

The Little Humpbacked Horse

A beloved Russian classic about a resourceful Russian peasant, Vanya, and his miracle-working horse, who together undergo various trials, exploits and adventures at the whim of a laughable tsar, told in rich, narrative poetry.

Bears in the Caviar
May 01, 2015

Bears in the Caviar

Bears in the Caviar is a hilarious and insightful memoir by a diplomat who was “present at the creation” of US-Soviet relations. Charles Thayer headed off to Russia in 1933, calculating that if he could just learn Russian and be on the spot when the US and USSR established relations, he could make himself indispensable and start a career in the foreign service. Remarkably, he pulled it of.

The Pet Hawk of the House of Abbas
October 01, 2013

The Pet Hawk of the House of Abbas

This exciting new trilogy by a Russian author – who has been compared to Orhan Pamuk and Umberto Eco – vividly recreates a lost world, yet its passions and characters are entirely relevant to the present day. Full of mystery, memorable characters, and non-stop adventure, The Pet Hawk of the House of Abbas is a must read for lovers of historical fiction and international thrillers.

 
Little Golden Calf
February 01, 2010

Little Golden Calf

Our edition of The Little Golden Calf, one of the greatest Russian satires ever, is the first new translation of this classic novel in nearly fifty years. It is also the first unabridged, uncensored English translation ever, and is 100% true to the original 1931 serial publication in the Russian journal 30 Dnei. Anne O. Fisher’s translation is copiously annotated, and includes an introduction by Alexandra Ilf, the daughter of one of the book’s two co-authors.

Marooned in Moscow
May 01, 2011

Marooned in Moscow

This gripping autobiography plays out against the backdrop of Russia's bloody Civil War, and was one of the first Western eyewitness accounts of life in post-revolutionary Russia. Marooned in Moscow provides a fascinating account of one woman's entry into war-torn Russia in early 1920, first-person impressions of many in the top Soviet leadership, and accounts of the author's increasingly dangerous work as a journalist and spy, to say nothing of her work on behalf of prisoners, her two arrests, and her eventual ten-month-long imprisonment, including in the infamous Lubyanka prison. It is a veritable encyclopedia of life in Russia in the early 1920s.

About Us

Russian Life is a publication of a 30-year-young, award-winning publishing house that creates a bimonthly magazine, books, maps, and other products for Russophiles the world over.

Latest Posts

Our Contacts

Russian Life
73 Main Street, Suite 402
Montpelier VT 05602

802-223-4955