[lbo-talk] Russia's economy

tfast tfast at yorku.ca
Sat May 12 08:51:02 PDT 2007


Ok so that I don't end going over my quota I am going to respond to a number to Doug and then other comments re the URAL.


>
> On May 11, 2007, at 4:02 PM, tfast wrote:
>
> > Doug, why don't you try crossing that border to find out just how
> > unguarded
> > it is? I can remember crossing into the US without so much as
> > showing a
> > drivers licence. Those days are gone, the US is an armed camp.
>
> I've done so many times, most recently in July and December 2006.
> Yeah, it's not as mellow as it used to be but there's a long history
> of peaceful relations between the two countries.

True but that is only for the last 100 years. Recall that the Canadians burnt the white house to the ground. I know your history books teach you it was the English but I assure you it was the Canadians. More seriously Canada's birthday 1867 was brought about largely due to fear of American invasion / annexation.


>
> > I raised the Canadian model primarily as an example of middling
> > affluency
> > (and aspirations) built on a very weak indigenous industrial base.
>
> Yes, but the "branch plant" economy has worked pretty well for
> Canada. Middling affluency? Compared to whom? Canadians are some of
> the materially best-off people in the world. The latest HDI ranking
> <http://hdr.undp.org/hdr2006/statistics/> has Canada at 6, ahead of
> Japan (7), the U.S. (8), Switzerland (9)...
>
> Sadly, Russia is at 65, ahead of Brazil (69) but behind Cuba (50) and
> Mexico (53).
>
> Doug

What I meant by middling affluence was the lack of big time capacity in science and RnD; the lack of a global leading sector; the lack of big time multinationals; the lack of a global brand name etc., etc., and yet Canada has a very high standard of living. Such is the Canadian model. My argument was that Russia given its resource profile and proximity the EU could achieve the same status. Given Russia is not part of the EU it could use a tariff wall to encourage multinationals to set up branch plants.

As for the URAL motorcycles. The Wolf is pretty cool. It is the horizontal opposing pistons that I have always loved on the BMW's that really clinches the deal. The side car bikes seem to be more novelty items but I have read that they do very well in the snow as power can be sent to the side car wheel. As an aside it even has reverse gear. But at 12,500 we are getting close to the price of a near new 4w drive Jeep. That is it is allot of money for novelty because despite its stability in the snow at -10c to -20c makes riding it a rather absurd proposition. At least if you are sober.

However, the URAL company is a success story in terms of converting an old soviet company. Urals international sales are pretty good and pretty broad and they have made continual improvements to their bikes. What is key is that they have retained the essential design and have instead focussed on the quality of the build and the materials used. Mechanically it is one of the easiest motorcycles to work on and cheapest to keep on the roads. If I was not doing what I was doing I would open up a URAL dealership. And that it can be traced back to uncle Joe makes it all the more appealing. But hey VW drivers already know what I am talking about.

Travis
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