lbo-talk-digest V1 #5007

Chris Doss chrisd at russiajournal.com
Fri Oct 5 03:44:18 PDT 2001


Hmm, Eurostat says that Russia, far from being a hopeless basket case, actually ran respectable trade surpluses with the EU during most of the 1990s:

http://europa.eu.int/comm/eurostat/Public/datashop/print-product/EN?catalogu e=Eurostat&product=6-27092001-EN-AP-EN&mode=download

The report also says (1) Russian food imports declined drastically in 1998 and have stayed that way, suggesting the domestic food sector has regained market share, and (2) Russian exports of manufactured goods to the EU are rising fast (they're now 25% of exports). Chris Doss, does this check out?

- -- Dennis

Also, re: imports. Before the 1998 crisis, fully 55% of goods sold in Russia were imports. When the 98 crisis hit and wiped out people's wages, this caused imports to become prohibitively priced. This was very good in the long term for domestic industry.

There is also a noticeable "middle class" in Russia now -- I mean people earning between $500 and $2,000 dollars a month. (This is a lot of money in a country where, in Moscow, the metro costs 25 cents, a decent dinner at a restaurant is $5, and a new pair of shoes is $20.)

Chris Doss The Russia Journal



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