RUSSIA History The Tsarist regime Bolshevik revolution 1917

RUSSIA

History • • • The Tsarist regime Bolshevik revolution (1917) Lenin (1917 -24) Stalin (1924 -53) Gorbachev (1985 -91) Demise of the USSR – Yeltsin (1991 -99) – Putin(2000 -

Political Economy • From communism to capitalism – Economic assets owned by the state – Mass education and low inequality • 1985 - 1992: Gorbachev’s limited reforms • 1992 - Yeltsin’s «shock therapy» – Privatizing SOEs – Opening economy to foreign investors

Political Economy • The rise of the oligarchs – Loans for shares – Russian capitalists with connections • Agricultural production declined, imports replaced domestic products

Which is why the recent food sanctions are important for Russia

Political Economy • Russian economy heavily reliant on gas • Resource curse: – corrupt politics – unstable terms of trade, because the prices of natural resources fluctuate widely. – hinders development of competitive manufacturing • 1998 economic crisis

Political Economy • Putin and the oligarchs • Media, Yukos allegations of tax evasion – Press freedom 148/180 (world press freedom index) • Corruption: state capture • Firms shaping laws • Cutbacks in welfare programs • Weak tradition of individual entrepreneurship • Reliance on personal trust not contracts

Governance and Policymaking • A strong President – To lead in a period of transition – Legacy of a strong state tradition • Dual executive – President and the Prime Minister • Bicameral legislature: Federal Assembly • The Soviet legacy of hierarchical organization • Communist Party of the Soviet Union • Party dominance then individual leaders’ dominance today

Governance and Policymaking • 1993 Constitution: Semi-presidential system • President: – Directly elected for 6 years, 2 consecutive terms. – foreign affairs, security, relations with regions – Appoints the PM, approval of the Parliament lower house (Duma) • If Duma rejects the PM three times, President can dissolve it – Proposes members of Constitutional, Supreme courts, which are approved by Duma – Right to call a state of emergency, call referendums

Governance and Policymaking • Presidential decrees have force of law until the Parliament passes a formal legislation • Yeltsin used decrees more often than Putin • Impeachment for treason is possible – Federal Assembly+ Supreme Court+Constitutional Court • PM: economy and related areas – PM can be removed by Duma with two consecutive votes of no confidence

Governance and Policymaking • • State may own control of shares in key firms. Gazprom: federal government owns 50% Several TV stations are publicly owned Judiciary – The Constitutional Court is cautious not to confront the executive

Governance and Policymaking • Federation according to constitution • Central government- constituent units have powers – Constituent units: republics, regions, districts, cities • Ethnic groups are regionally concentrated – Central government sensitive relationship with ethnic republics, e. g. Tatarstan, Chechnya – President appoints regional heads since 2004

Governance and Policymaking • Legislature • Duma (Lower chamber): 450 seats – Since 2005 – directly elected by proportional representation – 7% threshold • Federal Council (upper chamber): 170 seats, 2 each unit – 1993: directly elected representatives – 2000: one appointed by the regional head, the other by the regional legislature

Legislative Process DUMA FEDERAL COUNCIL Approve If rejects, Duma can override by 2/3 votes veto PRESIDENT 2/3 votes of both chambers

Security and governance Beslan hostage crisis 2004

Security and governance • Putin used Beslan (N. Ossetia) as an excuse to further centralize power • Foreign-funded NGOs are restricted

Political Parties • Left (social state slow reforms) • Nationalist (no westernization) • Liberal (rapid market reforms and integration with West) • Centrist: United Russia mix of all