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

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.

 
Fish
February 01, 2010

Fish

This mesmerizing novel from one of Russia’s most important modern authors traces the life journey of a selfless Russian everywoman. In the wake of the Soviet breakup, inexorable forces drag Vera across the breadth of the Russian empire. Facing a relentless onslaught of human and social trials, she swims against the current of life, countering adversity and pain with compassion and hope, in many ways personifying Mother Russia’s torment and resilience amid the Soviet disintegration.

Life Stories
September 01, 2009

Life Stories

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.

A Taste of Chekhov
December 24, 2022

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.

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.

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.

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. 

Murder and the Muse
December 12, 2016

Murder and the Muse

KGB Chief Andropov has tapped Matyushkin to solve a brazen jewel heist from Picasso’s wife at the posh Metropole Hotel. But when the case bleeds over into murder, machinations, and international intrigue, not everyone is eager to see where the clues might lead.

Moscow and Muscovites
November 26, 2013

Moscow and Muscovites

Vladimir Gilyarovsky's classic portrait of the Russian capital is one of Russians’ most beloved books. Yet it has never before been translated into English. Until now! It is a spectactular verbal pastiche: conversation, from gutter gibberish to the drawing room; oratory, from illiterates to aristocrats; prose, from boilerplate to Tolstoy; poetry, from earthy humor to Pushkin. 

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