chapter  8
18 Pages

Russian domestic economic policy and the development of economic and trading relations with the EU

This chapter examines how Russia’s economic links with the EU, particularly those relating to trade, have evolved and how ideological constraints operate on both sides. We have argued elsewhere (Jones and Fallon 2001a) that Russia is not an economy in transition but is stalled at the beginning of a process of change that appears to be moving towards ‘transition’ but which is, in reality, constrained by a range of domestic social, political and economic factors. Transition is, to some extent, a construct of the West that defines the economic and political development of Central and Eastern Europe in terms that are comprehensible and desirable in the West and informs the ways in which Western economies, including those in the EU, seek to influence the direction of economic and political development in the ‘transition economies’. In short, policies that define the EU’s trade and economic relationships with Russia have been informed by a particular view of economic development that has proved to be problematic.