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...Russia's growth rate should be more like 15% than 6%, says Illarionov. Furthermore, Russia runs a clear risk by pegging so much of its economy to the energy sector. Illarionov describes Russia as evolving into "a new corporatist model" - one in which the economy is dominated by monopolistic quasi?state controlled corporations. In addition to Russia's renationalization of the oil industry, in November the country's weapons-trade monopoly, Rosoboronexport, announced it was taking control of Russia's largest auto manufacturer, the formerly privatized AvtoVAZ. The combination of such reassertion of state control and the opening...

Author: /time Magazine | Title: Putin's Power Surge | 12/31/2005 | See Source »

...Illarionov: The strengthening of the corporativist state model and setting up favorable conditions for quasi-state monopolies by the state itself hurt the economy. Like Gazprom purchasing Sibneft, and another state monopoly purchasing other private company. The state generated some $30 billion in debt to do just that. Or take the case of RAO UES (the electricity monopoly) buying a sizable part of the Power Machines Plant. When the state unraveled Yukos, officials insisted it was a single such case rather than a trend. But it soon became obvious that Yukos was not a single case, that this concerns...

Author: /time Magazine | Title: Q&A: Putin's Critical Adviser | 12/31/2005 | See Source »

...Illarionov: One can assume that it'll be an economy, controlled by quasi-state corporations in energy, infrastructure, in all the cash flow realms...

Author: /time Magazine | Title: Q&A: Putin's Critical Adviser | 12/31/2005 | See Source »

...TIME: You emphasize the word "quasi...

Author: /time Magazine | Title: Q&A: Putin's Critical Adviser | 12/31/2005 | See Source »

...order of the day in Russia. In what Western country-except in the corporativist state that lasted for 20 years in Italy-is such a phenomenon possible? Which, actually, proves that the term "corporativist" properly applies to Russia today. We are witnessing aggression on the part of quasi-state run corporations against whatever private businesses capable of generating cash flows. In fact, this aggression spreads outside Russia as well...

Author: /time Magazine | Title: Q&A: Putin's Critical Adviser | 12/31/2005 | See Source »

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