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

Maria's War: A Soldier's Autobiography

Maria's War: A Soldier's Autobiography

This astonishingly gripping autobiography by the founder of the Russian Women’s Death Battallion in World War I is an eye-opening documentary of life before, during and after the Bolshevik Revolution.
Faith & Humor: Notes from Muscovy

Faith & Humor: Notes from Muscovy

A book that dares to explore the humanity of priests and pilgrims, saints and sinners, Faith & Humor has been both a runaway bestseller in Russia and the focus of heated controversy – as often happens when a thoughtful writer takes on sacred cows. The stories, aphorisms, anecdotes, dialogues and adventures in this volume comprise an encyclopedia of modern Russian Orthodoxy, and thereby of Russian life.
The Samovar Murders

The Samovar Murders

The murder of a poet is always more than a murder. When a famous writer is brutally stabbed on the campus of Moscow’s Lumumba University, the son of a recently deposed African president confesses, and the case assumes political implications that no one wants any part of.
The Moscow Eccentric

The Moscow Eccentric

Advance reviewers are calling this new translation "a coup" and "a remarkable achievement." This rediscovered gem of a novel by one of Russia's finest writers explores some of the thorniest issues of the early twentieth century.
Okudzhava Bilingual

Okudzhava Bilingual

Poems, songs and autobiographical sketches by Bulat Okudzhava, the king of the Russian bards. 
Woe From Wit (bilingual)

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.
How Russia Got That Way

How Russia Got That Way

A fast-paced crash course in Russian history, from Norsemen to Navalny, that explores the ways the Kremlin uses history to achieve its ends.
A Taste of Chekhov

A Taste of Chekhov

This compact volume is an introduction to the works of Chekhov the master storyteller, via nine stories spanning the last twenty years of his life.
The Frogs Who Begged for a Tsar (bilingual)

The Frogs Who Begged for a Tsar (bilingual)

The fables of Ivan Krylov are rich fonts of Russian cultural wisdom and experience – reading and understanding them is vital to grasping the Russian worldview. This new edition of 62 of Krylov’s tales presents them side-by-side in English and Russian. The wonderfully lyrical translations by Lydia Razran Stone are accompanied by original, whimsical color illustrations by Katya Korobkina.
Life Stories: Original Fiction By Russian Authors

Life Stories: Original Fiction By Russian Authors

The Life Stories collection is a nice introduction to contemporary Russian fiction: many of the 19 authors featured here have won major Russian literary prizes and/or become bestsellers. These are life-affirming stories of love, family, hope, rebirth, mystery and imagination, masterfully translated by some of the best Russian-English translators working today. The selections reassert the power of Russian literature to affect readers of all cultures in profound and lasting ways. Best of all, 100% of the profits from the sale of this book are going to benefit Russian hospice—not-for-profit care for fellow human beings who are nearing the end of their own life stories.
Murder at the Dacha

Murder at the Dacha

Senior Lieutenant Pavel Matyushkin has a problem. Several, actually. Not the least of them is the fact that a powerful Soviet boss has been murdered, and Matyushkin's surly commander has given him an unreasonably short time frame to close the case.

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