Get PJ Media on your Apple

‘Putinomics’ Has the Russian Economy in a Tailspin

The days of Vladimir Putin strutting about the world stage boasting of his economic achievements have come to an end.

by
Kim Zigfeld

Bio

November 20, 2013 - 12:28 am
<- Prev  Page 2 of 2   View as Single Page

Finally, the boot was put in by the financial consulting firm Z/Yen, which annually prepares a listing of world cities ranked by their financial clout.  In 2011 Z/Yen put Moscow at #61 on its list of about 80 major metropolises. Pretty feeble stuff.  But for wretched Moscow, now it’s the good old days.  The 2013 study places Moscow #69, after falling to #64 in 2012.  Despite Putin’s bold pronouncements that Moscow would soon become a leading financial center, backed up by massive skyscraper construction projects, the capital city is going backwards not forwards.  One Western banker working there told the New York Times: “Moscow was never going to be an international financial center. That was a joke.”

The tone in all this adverse reporting is crystal clear:  The neo-Soviet arrogance and even petulance which Putin has adopted towards the outside world was not just unjustified, it was fraudulent.  Putin benefited from the accidental spiking of the price of oil and a temporary uptick in childbirth, neither of which had anything at all to do with his policies. Now, the neo-Soviet chickens have come home to roost. The world now sees Putin’s Russia for what it truly is, like the infamous emperor without his “new clothes,” and the world is jeering.

A good case study for understanding the sorry plight of the Putin economy is tourism.  Putin’s English-language propaganda screed Russia Beyond the Headlines recently touted a UN report showing that Russia was in ninth place worldwide for visitation by tourists. But as is so typical for RBTH, one of the worst sources of information about Russia that there is, the real story, extremely negative for Russia, was left out of its pages.

Russia does not rank anywhere remotely close to the top 10 when it comes to receipt of tourist dollars.  It had a paltry $12 billion in tourist receipts compared a whopping $30 billion by Australia, which rounds out the top 10 list (the USA tops the list with $125 billion in tourist receipts, ten times more than Russia has and five times more per capita).

The reason for this is simple:  The “tourists” who visit Russia have little or no money, mostly coming from the impoverished nations of the former USSR.  When it comes to competing for the attention of sophisticated tourists who do have money and the PR clout that goes with it, clout that might influence international attitudes towards Russia, Russia doesn’t compete, it simply fails.

This is confirmed by the World Economic Forum, whose most recent data show that Russia ranks an anemic #63 in tourism competitiveness.  Sophisticated tourists are going to tend to shy away from the horrific issues that plague Russian society, from rudeness to corruption to illness and safety risks. And without genius-level marketing, they’re not going to find Russia’s relatively modest attractions very beguiling.

But Putin’s response to all this will be the RBTH response:  deception and diversion.  He will not seek reform, but he will put a great deal of energy, just as in Soviet times, into creating the illusion of success and liquidating anyone within Russia who tries to tell a different story.

<- Prev  Page 2 of 2   View as Single Page
Kim Zigfeld is a New York City-based writer who publishes her own Russia specialty blog, La Russophobe. She also writes about Russia for the American Thinker and for Russia! magazine and is researching a book on the rise of dictatorship in Putin’s Russia.

Comments are closed.

Top Rated Comments   
You haven't gotten the memo. US leftists only care about homosexuals in the USA, in exchange for votes. If they are oppressed by Russia or the Muslims, that is no problem for them at all. Same for women.
21 weeks ago
21 weeks ago Link To Comment
Led by America, fracking is changing the world.

The shut off of the supply of petro dollars flowing into the hands of our ideological enemies, the Islamists and Communists will bring them to their economic knees.

In addition to fracking, the United States needs to start the immediate roll-out of small form factor Thorium reactors. I could stomach a Chris Christie candidacy if he made this a central aspect of the policy he would implement if President.
21 weeks ago
21 weeks ago Link To Comment
Maybe Putin should convert to Americanism and borrow a few trillion dollars that he cannot pay back. His economy would be praised by the corrupt West and he could then start to give out free food, phones, houses, medical care and his economy would take off; after all that is the American blueprint for prosperity.
21 weeks ago
21 weeks ago Link To Comment
All Comments   (17)
All Comments   (17)
Sort: Newest Oldest Top Rated
Wyatt. if you, thought Julie`s st0ry is flabbergasting... on monday I bought a brand new Saab 99 Turbo since I been bringin in $9449 this last five weeks and also 10k last munth. no-doubt about it, this really is my favourite job Ive had. I actually started five months/ago and almost immediately started bringing in minimum $87, per-hour. look at here WWW.j­o­b­s­5­9.C­O­M
20 weeks ago
20 weeks ago Link To Comment
my co-worker's step-mother makes $86/hr on the internet. She has been out of work for 9 months but last month her payment was $16620 just working on the internet for a few hours. read this article ..... http://www.fb49.com
20 weeks ago
20 weeks ago Link To Comment
It is pretty simple.

No one in their right mind would invest money in Russia now and that includes Russians. It is simply too corrupt and arbitary

And so it stagnates.
21 weeks ago
21 weeks ago Link To Comment
Thanks to obama though, Russia seems to be doing very well in global diplomacy.
21 weeks ago
21 weeks ago Link To Comment
What's the chances we could convince Obama he could get back at Putin for dissing him just by approving the Keystone pipeline and opening up public lands for oil exploration and development?
21 weeks ago
21 weeks ago Link To Comment
While schadenfreude is certainly in order, this development is ominous.

Russia may choose to increase its critical oil revenue by fomenting conflict in the Middle East. It's weak economic position has already caused Russia to adopt a military doctrine calling for early use of nuclear weapons - because it doesn't have an adequate conventional military and nukes are cheap. Putin could stir up international crises in order to divert the attention of the populace from the poor economy.
21 weeks ago
21 weeks ago Link To Comment
Thank you roughnecks at Bakken for freeing America from dependence on such irrational tyrants.
A prediction: Russia will instigate a war in the Middle East to curtail supplies and drive up the price of its oil on global markets.
That's what an ex-KGB officer would do.
21 weeks ago
21 weeks ago Link To Comment
Dont worry. Obama and the radical environmentalists are doing their best to crush the entrepeneurs who did what our gov could never do, make us energy independent. If Obama has his way, we will soon be back to the good old days of begging Russia and the Saudis for oil.
21 weeks ago
21 weeks ago Link To Comment
My dentist took one of the river cruises to St. Petersburg to see the cathedral and palaces. It was interesting, he said, but he'll never go back.
21 weeks ago
21 weeks ago Link To Comment
The winners are NYC, London, Paris, the Cote d'Azur and Miami, where the Russian billionaire kleptocrats are spending their money. Last year one Russian billionaire docked the world's largest yacht in NY harbor, so his crew of 150 could wait on him and his mistress while she was expecting with their child. Then she delivered in NY, so their child could have the most valuable privilege in the world: US citizenship!
21 weeks ago
21 weeks ago Link To Comment
Led by America, fracking is changing the world.

The shut off of the supply of petro dollars flowing into the hands of our ideological enemies, the Islamists and Communists will bring them to their economic knees.

In addition to fracking, the United States needs to start the immediate roll-out of small form factor Thorium reactors. I could stomach a Chris Christie candidacy if he made this a central aspect of the policy he would implement if President.
21 weeks ago
21 weeks ago Link To Comment
You had me until you mentioned Chris Christie. I'm still not sure I could stomach him even then.
21 weeks ago
21 weeks ago Link To Comment
I know I couldn't.
21 weeks ago
21 weeks ago Link To Comment
1 2 Next View All