Russian Economic Crisis

Since mid-2008, Russia has endured an economic crisis so serious that it has emboldened many Russians, including President Dmitry Medvedev, to call for a fundamental overhaul of the country's resource-dependent, statedominated economy. The proposed new model would favor innovation and integration into global institutions. Medvedev's push for modernization has encountered stiff resistance from the bureaucratic-oligarchic elite that profits from the status quo. These domestic challenges...
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Since mid-2008, Russia has endured an economic crisis so serious that it has emboldened many Russians, including President Dmitry Medvedev, to call for a fundamental overhaul of the country's resource-dependent, statedominated economy. The proposed new model would favor innovation and integration into global institutions. Medvedev's push for modernization has encountered stiff resistance from the bureaucratic-oligarchic elite that profits from the status quo. These domestic challenges mean that Russia has pursued a more restrained foreign policy, especially with its post-Soviet neighbors.Russia's economic crisis creates an opportunity for the United States and its allies to draw the nation further into the global economy. In The Russian Economic Crisis, Jeffrey Mankoff argues that the West should use the promise of foreign investment and access to international economic institutions like the World Trade Organization to nudge Russia into the role of responsible stakeholder. A similar policy should be adopted toward its neighbors to bolster them against the possibility of Russian intervention, which could derail economic reform and integration across the region.