Economic development's road to the colonies
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Abstract
Before the onset of the Russia–Ukraine war, the Russian economic development model, shaped by colonialism and neoliberalism, prioritized short-term capital flows, often neglecting long-term investments focused on import substitution.The ongoing decline of the ruble has created a shortage of investment resources, leading to inflation surpassing expectations.The monetary and credit policies of the Central Bank have significantly influenced the economy's condition.Export-orientated industries experienced a remarkable growth rate compared to domestic ones. However, the variety of goods became more and more restricted as the ruble's value dropped. In the long run, new technologies have the potential to replace imports, significantly boosting production competitiveness. Devaluation will, however, increase investment expenses and hinder economic growth.
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