STUDENT NOTES - 4 CH. 4 THE RUSSIAN FEDERATION

Linkage Institutions – Overview Linkage Institutions – still not strong in Russia Political Parties – Historically unstable…why? – No strong opposing political parties to dominating party State Corporatism – State determines which groups have input into policymaking – Weak civil society means interest groups have no solid footing Media – Some privately owned, but state controlled – Ranks 140 th out of 178 in terms of press freedom

III. CITIZENS, SOCIETY AND STATE: CLEAVAGES Biggest Cleavage is Nationality – 80% are Russian – Tatar = 3.8% (Muslim) – Ukrainian = 2% – Bashkir = 1.2% – Chuvash = 1.1% – Other = 12.1% Because of structure of federation, ethnicity tends to be coinciding with region and often religion too Chechnya - primary Muslim region has fought for independence

III. CITIZENS, SOCIETY AND STATE: CLEAVAGES Most ethnic Russians identify themselves as Russian Orthodox, but are largely nonreligious Other religions are represented in small percentages – Muslims, Roman Catholic, Protestant, Jewish Recent rapid rise in Muslim share of population – The Caucasus (area between Black & Caspian Seas) Includes Chechens Very unstable region

III. CITIZENS, SOCIETY AND STATE: CLEAVAGES Social Class – In USSR – Communist party members (elite) vs. non- members – Modern times – small class of really rich (started with Oligarchs) vs working class (middle class small by Western standards) Rural/Urban – 73% now live in cities, mostly in west – More likely to be well educated and more in touch with western values

V. POLITICAL ENVIRONMENT AND ECONOMIC CHANGE SHOCK THERAPY under Yeltsin – Transition from command to market – Really sudden economic liberalization – Criticized as “all shock and no therapy” Abolished price controls, raised taxes, cut gov spending, privatization of state industries, trade liberalization Citizens give a private voucher worth $30 ~ 10,000 rubles: – Sell or Buy stock or invest in mutual fund – GOAL: make everyone an owner and help transition culture to investors w/ stake in market Investment funds bought up most of the vouchers – led to tremendous concentration of wealth and powerful oligarchs ***no competition/level playing field = no capitalism

V. POLITICAL ENVIRONMENT AND ECONOMIC CHANGE Defined as a kleptocracy: where the government exists to increase the personal wealth and political power of its officials and the ruling class at the expense of the wider population, often with pretense of honest service 1998: lower oil prices, rising gov debt, value of ruble plunged, FDI fled Early 2000’s: rising oil prices, natural gas – led average GDP growth rate of 7% next 9 years 2008: stock market collapsed Too dependent on oil Income gap substantial

V. POLITICAL ENVIRONMENT AND ECONOMIC CHANGE 6 th largest economy in the world (PPP) Growth of middle class in 2000’s More billionaires than any other country Average person makes about $250/month 20-30% lives in poverty

V. POLITICAL ENVIRONMENT AND ECONOMIC CHANGE Russia is a RENTIER STATE Petroleum, petroleum products and natural gas top exports (80%) and 30% of government revenue Vunerable to fluctuations in global economy

V. POLITICAL ENVIRONMENT AND ECONOMIC CHANGE

VI. PUBLIC POLICY: CURRENT CHALLENGES Regional respect/leadership Member of G8, G20, UN Security Council, BRIC Underpopulated – ~life expectancy 62; 74 (disease, murder, suicide, drug addiction, alcoholism) Depleted workforce, security risk Corruption – Inefficiencies threatens sustainability – majority believe that any gov. interaction involves bribes – Ranked 122 nd democracy in world; 149/190 on TICPI