The Economics Show The real Russian economy. With Sergei Guriev
27 snips
Feb 17, 2025 
Sergei Guriev, Dean of the London Business School and an economic advisor to Russian opposition figures, discusses the real state of the Russian economy amid the Ukraine war. He debates the effectiveness of Western sanctions against Russia and distinguishes between Putin's propaganda and economic reality. The conversation delves into how military spending distorts GDP, the impact of inflation, and public perception in wartime. Guriev also highlights the challenges of enforcing sanctions on the oil industry and the complex dynamics between dictatorships and economic stability.
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Misleading GDP Growth
- Russia's GDP growth amidst war is misleading due to how it accounts for military spending.
- Destroyed tanks count as positive GDP, similar to printing money without actual production.
Real Cost of War
- Real resources, not just budget numbers, are key to understanding war costs.
- Quantifying these resources, including labor, materials, and logistics, remains challenging.
Redistribution and Inequality
- Limited resources and high military sector wages cause redistribution within Russia.
- This impacts purchasing power and disproportionately affects those not involved in war efforts.
