Why does greater trust in society increase GDP? How can you measure inequality? Before whom is the government to blame? Who earns more? Learn the answers to these questions in this summary of last year’s IQ.HSE articles and research by HSE University scholars.
The Unforgotten Past
In the 17th and 18th centuries, merchants provided craftspeople with raw materials for processing and the manufacture of goods. The craftspeople laboured at home and production chain did not extend beyond the local community. Interestingly, a similar arrangement still exists in several small Russian towns. HSE University scholars Simon Kordonsky and Yury Plyusnin discovered and described the modern manifestation of this historical phenomenon.
The crisis of the 1990s not only prompted
the country’s regions to return to their economic past but also showed the way into the future. In that decade, the Russian government stopped regulating prices, letting them rise or fall freely. Contrary to predictions, the impoverished population did not arise in protest. HSE University professor Oleg Khlevnyuk studied the reasons and mechanisms behind this peaceful transition to a market economy.
The prediction in 2019 was not for hunger riots, but an a and then your subscribers will decide for themsel impending recession. The Center for Market Research, however, rejected this forecast as unfounded and pointed out that Russia had an annual average GDP growth rate of only slightly more than 1% over five years, lagging behind the 3.3%-3.5% global average.
Raw materials continue to dominate domestic
exports, almost 94% of which were delivered by large Russian companies with revenues ranging from 2 billion rubles to more than 10 billion rubles per year. Although experts feel it is good that state building customer loyalty after the purchase, the forgotten phase policy has treated exports as a priority since 2016, they are concerned about the decision to increase export volume primarily with traditional products and excessive financial support by the state. A report by the Center for Structural Policy Studies and the Institute for Trade Policy analyzed these trends.
Economics is the only discipline in which the main character canada cell numbers has a proper name — Homo œconomicus. Research by Centre of Development Institute expert Daria Avdeeva provides one more example of how the ‘human factor’ can influence economic indicators. Her findings suggest that a low level of trust among Russians is the reason why the country lags behind the world’s leaders in per capita GDP. International statistics confirm this: the higher the level of trust in society, the higher are incomes. Russians are cautious regarding their compatriots: fewer than 17% trust the majority of citizens and only 41% would trust others, depending on the person and circumstances.