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by bobthepanda
435 days ago
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I would imagine at least part of it is the fact that Russia is a resource exporting economy and thus suffers from "Dutch disease" where the consistent sale of commodities like oil pushes up the currency and makes other types of exports less compatible. If natural resources are super-profitable then they potentially become a crutch for the economy; and if other sectors are less competitive and profitable then there is not much reason to invest there. Coupled with the fact that these types of sectors don't actually employ very many people as a percentage of the population, it makes sense that it would have bad effects on the rest of the population. |
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