ABSTRACT
This chapter explores the interaction of three concepts that are central to an understanding of Russia's political economy: resource rents, resource addiction, and the rent management system. It explains these concepts, how they interact, and how they form the basis for Russia's political economy and shape its prospects for the future. In analysing the future of the system, the chapter argues that: increasing rent is the only source of significant growth for Russia; addiction is a more serious problem than ever and will continue to grow; and for all its flaws, the current rent management system, established by Vladimir Putin, is well suited to the likely future possibility of stagnant rents and stronger claims by addicts. Every resource abundant economy has some kind of system to control the flow of rents. From the standpoint of the leaders of the economy, the function of that system is to channel rents to their preferred uses and to prevent their dissipation or diversion.
