Problem: Russia-Politics
Russia's future economic success is intimately tied, of course, to its political processes. The state needs to win over foreign multinational investors who fear political tyranny and domestic corruption. Maplecroft, the British political risk consulting firm, in 2011 ranked Russia 186th out of 196 countries in political risk to business (1 being least risky) and according to Transparency International, Russia is the world's most corrupt major economy, ranking 154th out of 178 countries (1 being least corrupt).67 The Russian government's centralization of economic power has been accompanied by tightened control over politics, courts, activists, and the mass media. A 2012 law imposes a $9,000 fine on those taking part in unsanctioned demonstrations that damage people or property.68 At this writing in 2013, hundreds of Russian civil organizations (e.g., supporting voting rights) have been subjected to "inspections" for "political activity."69 Recent legislation bans the "propaganda of nontraditional sexual relations" and imposes fines for holding gay pride rallies or providing information about the gay community to minors.70 The Russian people, nonetheless, express strong support for President Putin, even as they acknowledge a wide gap between what is and what should be in Russian elections, judicial systems, free press, and the like.71 Critics question whether state capitalism as practiced in Russia can succeed in the face of political repression, routine corruption, and abuse of the rule of law.72
Questions
1. China wants to curb its population growth, while Russia has sought to increase its number of children. China's government allows each couple to have only one child, although exceptions are permitted for those living in rural areas and for minorities. Heavy fines may be imposed on those who violate the rules. In Russia, then President Dmitri Medvedev, in his 2010 State of Russia speech, called for a baby bonus, better health care, and free land for women who will have a third child. Why would governments make commands on childbearing practices? Is this acceptable? Explain.
2. Can China maintain its closed, centrally controlled political system while enjoying the benefits of its somewhat open economic markets? Explain.
3. In 2014, in response to Russian military action in Ukraine, the United States imposed sanctions-travel bans and asset freezes-on several Russian government officials as well as business executives and companies. What impact might these sanctions have? Should such sanctions be a part of an international response to a government's actions? Explain.