The Early Days of a Better Nation

Tuesday, March 09, 2004

Putin's other ear

Will the nemesis of neo-liberalism in Russia be inspired by David Ricardo and Henry George?
The question now being asked is whether the oligarchs will sell off ownership of Russia's natural resources to the West as they bail out of Russia, or whether the nation will rescue itself from the insider privatizations by recapturing the revenue and wealth taken by the oligarchs.

In the West one hears mainly of reversing and renationalizing the giveaways of the 1990s. But in Russia itself Sergei Glaziev, Dmitri Lvov and other economists are proposing a rent-tax to recapture the oil and gas, land and mineral rent for the economy. If this route is taken, it will represent a revival of a "third way" of economic development proposed already in 1991 by many Western economists, including a substantial number of Nobel Economics Prize-winners. The remarkable thing is how little attention in the West this fiscal and monetary policy has received.


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