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Departures Podcast: “Putin is good for his people – he lets them steal as much as they want”

On this latest episode of Departures, Robert Amsterdam speaks with an admired friend and colleague Dr. Anders Åslund, author of the new book, “Russia’s Crony Capitalism: The Path from Market Economy to Kleptocracy.”

In his book, Åslund contends that in his eighteen years in Moscow, Putin has succeeded in establishing a Russian state and economy that are “exceedingly reminiscent” of those that existed in tsarist Russia, a far cry from the democratic state and liberal market economy that global observers had anticipated would inevitably follow the collapse of the Soviet Union.

According to Åslund, Putin has accomplished this by constructing an “iron quadrangle” comprised of “four circles of power,” which are “vertical state power,” “big state enterprises,” Putin’s “cronies,” and “Anglo-American offshore havens,” respectively.

The consolidation of this iron quadrangle is the result of Putin’s years’ long effort to deinstitutionalize the Russian state, and devise a system that guarantees macroeconomic stability, but falls short of delivering economic growth. As Åslund describes, these circumstances will likely yield a Russia in regression, a nation that is increasingly patrimonial and, as a result, will accelerate the ongoing retreat of democracy. Should this continue unabated, global powers, particularly those in the West, may expect Putin to grow increasingly authoritarian, and in the tsarist tradition, grow evermore inclined to taking risks in seeking sources of legitimacy other than macroeconomic stability.

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