12The place of economics in Russian national
identity debates
Peter Rutland
‘We are a rich country of poor people. And this is an intolerable
situation’.
(Vladimir Putin, 28 February 2000)This chapter traces the role of economics in intellectual debates
over Russian national identity. On one side are the modernisers
who believe that the only way to restore Russia’s prosperity and
standing in the world is to embrace Western market institutions.
On the other side are nationalists who believe that economic
integration will erode the political institutions and cultural norms
that are central to Russian identity. They argue that erecting bar-
riers to Western economic influence, and creating an alternate
trading bloc, are necessary to prevent the exploitation of the
Russian economy and even the possible destruction of the Russian
state. The chapter traces these debates from the chaotic reforms
of the 1990s through what appeared to be a winning Putin model
in the 2000s, and then the uncertain waters after the 2008 finan-
cial crash, culminating with the Western sanctions (and Russian
counter- sanctions) imposed after the annexation of Crimea in
2014.
It is possible to imagine a middle position, a third way between
the modernisers and the nationalists: a distinctively Russian eco-
nomic model that combines elements of trade openness with
measures to ensure Russia’s long- term development. However,
Russia has by and large failed to come up with its own third way