The Political Challenges of an Oil Boom: The Resource Curse and Political Stability in Russia

Author(s): Andreas Heinrich, Heiko Pleines
Editor(s): Stephen Aris, Aglaya Snetkov, Matthias Neumann, Robert Orttung, Jeronim Perovic, Heiko Pleines, Hans-Henning Schröder
Series: Russian Analytical Digest (RAD)
Issue: 113
Pages: 2-6
Publisher(s): Center for Security Studies (CSS), ETH Zurich; Research Centre for East European Studies, University of Bremen; Institute of History, University of Basel
Publication Year: 2012

This article discusses the political challenges arising from the Russian oil boom. It focuses on the regulation of foreign direct investment, the role of state-controlled companies and the management of resource revenues. It argues that inefficient governance allows the exploitation of resource revenues within political patronage networks, while, on the other hand, the insulation of the management of resource revenues from the patronage networks guarantees the future availability of rents. At the same time, the distribution of smaller parts of the rents to the larger population is meant to ensure that no serious political challenge to the patronage system will occur.

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