Financial Nigeria Magazine

Russia Falls Into Old Habits

- A sailor in Sevastopol holds the Russian flag at a one-year anniversar­y celebratio­n of the March 18, 2014, Russian takeover of Crimea. Russia and its leaders are acting more aggressive­ly at home and abroad, in keeping with a centuries-old historic cycle.

Nearly 10 years ago, Stratfor published a series on Russia's historical boom-and-bust cycle. At that time, Russia was clearly at the height of a boom, rebuilding itself into a stable and robust power. Today, the country is quickly descending into the next, less pleasant, stage. The strategy that revitalize­d the country is becoming less effective, forcing Russia and its leaders to act more aggressive­ly at home and abroad. Though still assertive, Russia is no longer acting from a position of strength. The country may maintain some semblance of strength for years to come, but its fragility will eventually become apparent, forcing it into the next phase of the cycle.

Geography's Role in Russian History

For nearly eight centuries, Russia has been trapped in a loose cycle: It rises from chaos,

By Lauren Goodrich

Russia's cycle can be divided into roughly three parts: collapse, resurrecti­on and fragility.

returns as a regional and sometimes even global power, grows aggressive as the system cracks, and then collapses before rising again. The cycle is less about political choice than it is about geographic constraint­s. Geographic­ally speaking, Russia is operating from an inherently weak position. It is the largest country in the world, covering roughly 13 time zones (split now into four mega-zones). Yet 75 percent of the country is virtually uninhabita­ble frozen tundra that becomes marshland in the summer, making domestic trade extremely difficult. Maritime trade is also difficult for Russia, given that its only warm-water port, on the Black Sea, is blocked by rivals, including Turkey. Therefore, the country has struggled to develop economical­ly.

Furthermor­e, Russia's heartland – which runs from St. Petersburg south through Moscow and into the Volga region – lies on a series of plains, making it vulnerable from all sides. This has forced Russia to seek to expand its borders and influence outward to create a buffer zone between its heartland and rival regional powers. As Catherine the Great famously put it: "I have no way to defend my borders except to extend them." The longest sustained example of this expansion occurred during the Soviet period, when the Russian heartland was shielded by Siberia, 14 other Soviet republics and seven Eastern Bloc countries.

Expanding Russian influence comes at an immense financial, military, political and social cost. During the Soviet period, Moscow had to centralize control over the entire Soviet space, subsidizin­g most of the Soviet states' economies while managing their diverse population­s. Moreover, Soviet gross domestic product was half of U.S. GDP, even though the two countries had roughly the same population. By the last decade of

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