This in an industry in which a technology 18 months behind the curve is obsolete. Bad policies translate into disastrous economic results. The accompanying table indicates the extent of the economic contraction. Industrial production and gross domestic product have sunk by almost 10 percent since January. Store shelves are emptying.
Social statistics are grim as well.
Life expectancy has actually fallen by several years over the past decade, and two leading causes of death are suicide and alcoholism. What is worrisome is that, by wrongly blaming capitalism for this economic virus, the Russians are rejecting the very policy prescriptions that can arrest the decline. No wonder investors are fleeing while they still can. First, we should stop treating Russia as an economic ally and start treating it as the national security threat that it still is. Russia is America's 32nd largest trading partner and ranks behind Ireland, Israel and even the Dominican Republic.