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TERRA ECONOMICUS

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  • Catching-up development under sanctions: The strategy of positive collaboration

Catching-up development under sanctions: The strategy of positive collaboration


TERRA ECONOMICUS, , Vol. 21 (no. 3),

The paper focuses on the elaboration of a long-term strategy for Russian socio-economic development. Western civilization is facing severe crisis, since mechanisms of economic and political competition outlived their efficiency. When fighting against unfavorable trends, those countries succeed that implement collaboration mechanisms in economic and political activities. The catching-up strategies of developing countries, therefore, need revising. This problem is particularly important for Russia being under international restrictions. Two alternatives are usually considered: mobilization strategy, which provides for a tightening of power, and a liberalization strategy, directed at reducing the role of the state. This paper attempts to show that the most preferable strategy is the strategy of positive (excluding activities against third parties) collaboration, aimed in the first stage at establishing the institutions of catching-up development and the reduction of inequality. As the experience of economic miracle countries shows, such a strategy makes it possible to launch rapid economic growth and to achieve high interpersonal trust and strong confidence in the state institutions. As the development succeeds, the role of government should diminish, whereas the role of market interactions might temporarily strengthen. Efforts should be directed to ensure that Russia finds itself among coordinated market economies with a significant level of corporate social responsibility and established consensus democracy. Due to growth in welfare, technological advancement, and the rise of civic culture, the strategy of positive collaboration might provide Russia with a collaborative advantage, which means joining the group of the most successful countries. In this case, a rapprochement between Russia and the EU countries seems quite plausible.
Citation: Polterovich M.V. (2023). Catching-up development under sanctions: The strategy of positive collaboration. Terra Economicus 21(3), 6–16 (in Russian). DOI: 10.18522/2073-6606-2023- 21-3-6-16


Keywords: The paper focuses on the elaboration of a long-term strategy for Russian socio-economic development. Western civilization is facing severe crisis, since mechanisms of economic and political competition outlived their efficiency. When fighting against unfavorable trends, those countries succeed that implement collaboration mechanisms in economic and political activities. The catching-up strategies of developing countries, therefore, need revising. This problem is particularly important for Russia being under international restrictions. Two alternatives are usually considered: mobilization strategy, which provides for a tightening of power, and a liberalization strategy, directed at reducing the role of the state. This paper attempts to show that the most preferable strategy is the strategy of positive (excluding activities against third parties) collaboration, aimed in the first stage at establishing the institutions of catching-up development and the reduction of inequality. As the experience of economic miracle countries shows, such a strategy makes it possible to launch rapid economic growth and to achieve high interpersonal trust and strong confidence in the state institutions. As the development succeeds, the role of government should diminish, whereas the role of market interactions might temporarily strengthen. Efforts should be directed to ensure that Russia finds itself among coordinated market economies with a significant level of corporate social responsibility and established consensus democracy. Due to growth in welfare, technological advancement, and the rise of civic culture, the strategy of positive collaboration might provide Russia with a collaborative advantage, which means joining the group of the most successful countries. In this case, a rapprochement between Russia and the EU countries seems quite plausible

JEL codes: B52, D02, D64, O20, P21

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Publisher: Southern Federal University
Founder: Southern Federal University
ISSN: 2073-6606