New Books in Economics Charles Hecker, "Zero Sum: The Arc of International Business in Russia" (Oxford UP, 2025)
May 21, 2025
Charles Hecker, a seasoned journalist and business consultant, dives into the tumultuous relationship between Western businesses and the Russian market. He recounts gripping stories from those who navigated the chaotic environment post-Soviet Union, emphasizing the allure of quick profits amid corruption and danger. He reflects on the transformation of business during Putin's rise, the profound impact of the Ukraine invasion, and the regrets shared by many who prioritized gain over ethical considerations. Hecker paints a vivid picture of risk-taking in a landscape that turned hostile.
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Risks of 1990s Russian Business
- Western business faced intense risks including violence, extortion, and insecure contracts in 1990s Russia.
- Despite this, direct violence on Westerners was rare, but business had a 'body count' due to crime and corruption.
Need for Local Networks
- Success in Russia required mastering both core business skills and deep local political, cultural, and network knowledge.
- Westerners often had to rely on Russian partners to navigate impenetrable local connections.
Putin's Rule Evolution
- Putin's early rule initially raised hope for stability and rule of law.
- Over time, rule of law became personalized under Putin, with increasing state control and arbitrary governance.