Russian Roulette: Russia's Economy in Putin's Era — John Shaqi
Russian Roulette: Russia's Economy in Putin's EraVaknin, Samuel
History
Russian Roulette: Russia's Economy in Putin's Era
Vaknin, Samuel
Putin, Vladimir Vladimirovich, 1952-; Russia (Federation) -- Politics and government -- 1991-
Still, launch technologies are simple matters. Until 1995, Russia
launched more loads annually than the rest of the world combined -
despite its depleted budget (less than Brazil's). But Russia's space
shuttle program, the Energia-Buran, was its last big investment in R&D.
It was put to rest in 1988. Perhaps as a result, Russia failed dismally
to deliver on its end of the $660 million ISS bargain with NASA. This
has cost NASA well over $3 billion in re-planning.
The living quarters of the International Space Station (ISS), codenamed
"Zvezda", launched two years late, failed to meet the onerous quality
criteria of the Americans. It is noisy and inadequately protected
against meteorites, reported "The Economist". Russia continues to
supply the astronauts and has just launched from Baikonur a Progress
M1-8 cargo ship with 2.4 tons of food, fuel, water, and oxygen.
The dark side of Russia's space industry is its sales of missile
technology to failed and rogue states throughout the world. Timothy
McCarthy and Victor Mizin of the U.S. Center for Nonproliferation
Studies wrote in the "International Herald Tribune in November 2001:
"[U.S. policy to date] leaves unsolved the key structural problem that
contributes to illegal sales: over-capacity in the Russian missile and
space industry and the inability or unwillingness of Moscow to do
anything about it ... There is simply too much industry [in Russia]
chasing too few legitimate dollars, rubles or euros. [Downsizing] and
restructuring must be a major part of any initiative that seeks to stop
Russian missile firms from selling 'excess production' to those who
should not have them."
The official space industry has little choice but to resort to missile
proliferation for its survival. The Russian domestic market is
inefficient, technologically backward, and lacks venture capital. It is
thus unable to foster innovation and reward innovators in the space
industry. Its biggest clients - government and budget-funded agencies -
rarely pay or pay late. Prices for space-related services do not
reflect market realities.
According to fas.org's comprehensive survey of the Russian space
industry, investment in replacement of capital assets deteriorated from
9 percent in 1998 to 0.5 percent in 1994. In the same period, costs of
materials shot up 382 times, cost of hardware services went up by 172
times, while labour costs increased 82-fold. The average salary in the
space industry, once a multiple of the Russian average wage, has now
fallen beneath it. The resulting brain drain was crippling. More than
35 percent of all workers left - and more than half of all the experts.
Private firms are doing somewhat better, though. A Russian company
unveiled, two weeks ago, a reusable vehicle for space tourism. The
ticket price - $100,000 for a 3-minutes trip. One hundred tickets were
already sold. The mock-up was exposed to the public in a Russian air
base.
Public-domain text, read in full here on John Shaqi.
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