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TERRA ECONOMICUS

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  • No 4
  • The fragmentation of political and economic system in Russia: Past and present

The fragmentation of political and economic system in Russia: Past and present


TERRA ECONOMICUS, , Vol. 22 (no. 4),

This article explores the current challenges of the political and economic system in Russia in the context of path dependence and lock-in concepts. The research combines the methods of new political economy, new institutional economics, and the world-system approach. The analysis shows that when Russia became a world empire and integrated into the global economy, this integration was quite fragmentary. The separated enclaves were isolated from the main part of the economy. Consequently, the economy and society were integrated through political and administrative centralization. We demonstrate how the fragmentation of economic markets and the reproduction of political and administrative centralization occurred in different periods: the imperial, Soviet, and modern times. Particular attention is paid to the combination of institutions that determine the relationship between the rules of political and economic interaction within the country, on the one hand, and the regimes of closedness or openness, on the other hand. The economic development in the post-Soviet period has shown the need to overcome the fragmentation of the political and economic system, which has taken the form of a dual-enclave economy. However, attempts to build an innovative-type economy and reindustrialization projects have not yet facilitated the creation of growth poles with long and complex value chains and have not contributed to ensuring long-term economic development. The situation after February 2022 gave rise to new challenges. It became obvious that the country’s development depends on creating a political and economic system that ensures a balance between overcoming the fragmentation of economic markets and the need to maintain political and administrative centralization. This article provides a comparative description of two alternative ways to organize such a system.
Citation: Levin S.N., Sablin K.S. (2024). The fragmentation of political and economic system in Russia: Past and present. Terra Economicus 22(4), 19–33 (in Russian). DOI: 10.18522/2073-66062024-22-4-19-33


Keywords: political-economic system; fragmentation; global world-economy; world-empire; dual enclave economy; discrete structural alternatives

JEL codes: O43; P51

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