So it seems interesting to me that amidst all the economic turmoil in Russia today, multilateral organizations like the IMF and the World Bank are emphasizing the need for economic reform without properly identifying the source of the bad economy . Russia's political infrastructure needs to be overhauled before legitimate economic changes can be made. As we watch the drama of a recalcitrant Vladimir Putin botch economic reform and seriously mishandle the crisis in Chechnya this reality becomes all to clear. Russian political experts have described the situation as dire and say we're witnessing the degradation of the authority of the state. If the Russian political elite can establish a credible political framework that ensures property rights , adequate transparency in both the public and private sector, reforms the judiciary and takes steps to correct the problems of corruption and organized crime , investors will come.
Political reform is an essential prerequisite before an economy can flourish.
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