Because natural resources were underpriced relative to manufactures during the Soviet era, Russia could expect to gain from a huge price shift relative to manufactures. Abundant natural and other resources, such as education and technology, might become a bonus for growth. As for natural resource endowments, while it is true that Russia gained handsomely as a higher share of energy exports have been priced at world market levels, this windfall may have contributed to the further concentration of Russian exports on basic commodities. Dual Economy Russia has the markings of a dual economy. It has a dynamic export sector consisting of oil, gas, raw materials, and some basic processed goods like chemicals.
Most jobs are in the domestic branches of the economy.
That fact has been demonstrated by many commodity producers in developing countries. But a dual economy also provides little welfare for most of the population and tends to generate wide income differentials. A dual economy, therefore, has an authoritarian tendency. Although Russian officials talk about maintaining and developing the technological basis of the economy, recent Russian policies have contributed to the creation of this dual economy. Domestically, a crucial question would be the willingness and ability of the central authorities to tax some of the revenue received by the exporters to use for infrastructure maintenance and redistribution.