This chapter analyses the systemic characteristics of economic development in Russia after 2009 and assess the potential of the economic system under Vladimir Putin to resolve the impediments to future growth, in particular by improvements in the economic institutions. The nature of institutions important for economic growth is investigated using the Worldwide Governance Indicators (WGI). It discusses the implications of the 'democracy shortage' on economic development, particularly through the restrictions on civil society and generally weak channels of 'voice' for citizens and organizations. The chapter presents a simplified model of the economic system and analyses the implications of rent addiction and rent management for the rest of the economy. It argues that the low voice and accountability indicator largely explains the low score in other WGI indicators such as 'rule of law' and 'control of corruption'. The analysis of Russia's institutions using the WGI shows that the institutional framework is weak and has deteriorated in recent years.