Russia Today （Economic）

  
Assignment IV – The Soviet Command Economy & Russia Today
This assignment is due no later than Sunday, Nov. 4 at 11:59 p.m.
Use the Blackboard Drop Box to submit your papers
Answer questions. In your answers, signal to me that you are consulting the assigned articles and lectures by using the informal citation (Smith, p. xx) or (Gedeon, PPT, 10/1)
 INTERMEDIATE INPUTS
1.  ———–SOURCES——– ——REQUIRED BY——– —–FINAL USE——————
  

Output

Stocks

Imports

Coal

Steel

Machinery

Consumption   

Exports

Imports
 
Coal   (tons)

975

10

0

10

500

50

50

100

210
 
Steel   (tons)

2,000

0

20

200

400

1,000

300

100

20
 
Machinery

100

5

5

20

40

10

20

10

10
 
Consumer   goods

340

10

20

0

0

0

100

100

230
 

The table shows the 4-sector input-out table of the Soviet economy in 1951. 
a. Does a balance exist? Discuss which sector/s you believe may not be in balance and why (50-75 words)
b. What options does Gosplan have to bring the system into balance? Which options would be appropriate for each sector that might not currently be balanced? How will this bring about balance? Justify your choice of action. (100-150 words)
c. Discuss five of the chief drawbacks to the system of central planning that was in place in the Soviet Union from 1935 – 1965. (250 words)
d. Why does Kornai argue that paternalism softens budget constraints? Why is the existence of soft budget constraints of concern to Kornai?
2. In his 90 minute lecture, “International Partnership in Russia,” James Henderson, Oxford Institute for Energy Studies, https://youtu.be/G-xjBh1HGjk     (this is a 90 minute video) IOC – international oil company (350 words)
a. Which Western foreign gas and oil companies are doing business in Russia? What is the nature of the partnership? Be specific. What are the deals?
b. What is the Eastern partnership? Explain Russia’s engagement with China and Japan. 
c. What are the core projects for the present through 2050? 
d. Review Henderson’s analysis of the business climate, investment challenges, ownership and operational decision making that foreign firms face when partnering with Russia. What does he say are the motivations by the foreign companies to enter into deals with Russia? Provide comments and examples from Henderson’s talk.
3. This question deals with Blank and Kim’s discussion of Russia’s “economic warfare.” (250-350 words)
a. The primary thesis seems to be stated in the Introduction: “Energy policies operate constantly as a major weapon in Russia’s national security strategy and are often utilized together with the other elements of Russia’s political warfare to consolidate the Putin regime’s domestic power and authority, obtain a neo-imperial sphere of influence in the governments of the former Soviet borderlands and Eastern Europe, and fracture European cohesion and integration.”
· What are the various policies and ways in which this warfare is or could be staged? What are the goals of the warfare—what is Russia trying to accomplish domestically and globally?
· In the energy field, specifically how is this warfare carried out?
b. Where are Blank and Kim going with their comments on p. 23, “Thus we see a conscious policy of state support for monopolizing gas flows in particular into the Balkans, acquiring downstream assets there and in the rest of Europe, and then branching out into other industries and the acquisition of economic-political influence over these states.”
o Monopolizing how? Explain how this fits into the major thesis of the argument that Russia is staging economic warfare
o What are downstream assets? In particular, which downstream assets is Russia busy acquiring? What and where?
o In what other industries is Russia planning to branch out? Where?
o What role is Gazprom playing in the Balkan strategy
c. The Turkstream project is supposed to replace the South Stream project. Outline this project: 
o Who are the players?
o Where is the pipeline supposed to go?
§ You may have to do a Google search to find a map to show the class. Be ready to cue up the map and show the plans
o What is Russia’s strategy in pushing through this deal? How does it enhance Russia’s influence?
o What would be the geopolitical ramifications?
4. Oskarsson and Yetiv’s 2013 article discusses Russia’s interest and involvement in the Middle East. Briefly discuss Russia’s current interest and involvement in the energy sector of Iran, Iraq, and Saudi Arabia, Quatar, and the UAE  (250 words)