January 20, 2014

Russia's Economy: The Paper Bear

By Kim Zigfeld
Last week, a devastating report emerged from the Organization for Economic Cooperation and Development  (OECD) in Europe to puncture one of the most persistent myths out there about Russia -- namely, that the country's greatest strength lies in its large, sophisticated workforce.  In fact, the data clearly shows that Russia's workforce is part of the problem, not the solution.  After last week, it's no longer possible to believe that the Russian economy has a future. The first myth exploded pertains to the vitality and size of Russia's workforce.  In fact, the report from the OECD reveals that in coming years, Russia will experience a sharp contraction in its workforce due to a similar contraction in the birth rate (see pages 24-25 of the report).  This same demographic problem is undermining the Russian army's ability to fill its ranks. The raw data is stunning: Russia ranks 10th in the world for mortality rate (only nine countries in on the planet kill...(Read Full Article)