i don't know what's more sad, that brazil has a larger economy than russia or that italy almost does. i mean, russia boasts a population of 54% college graduates... who all just work on oil rigs or for the state
its even worse now, it's like 75% of exports are oil and gas
their cost of labor is half of the gdp, like the developed world, but has extremely low productivity, like the undeveloped world. expensive labor and not much production is a losing proposition. which is why no one wants to invest in russia. well that, and a bunch of exKGB oligarghs are bleeding it dry using state corporations (and they have the gall to call Ukrainians fascists!) which make up about half of business in russia to steal from private business
oil is probably going to drop in price. north americans have obscene amounts of it and fraking just keeps getting cheaper. oil within 5 years is going to be around $80/barrel. YES. IT WILL. glorious. but not so for russia. you got norway who has socked away enough money so that each citizen is technically a millionare, and then you got russia, which wastes money as soon as it has it. oil has been dropping and will continue to drop and this is not good for the russians. as noted in the economist, "In 2005 the Russian government balanced its budget at an oil price of $20 a barrel. In 2013 it needed a price of $103 to balance it." jesus
