The economic and financial crisis in Russia – background, symptoms and prospects for the future. OSW Report 02/2015

The crisis in Russia’s financial market, which started in mid-December 2014, has exposed the real scale of the economic problems that have been growing in Russia for several years. Over the course of the last year, Russia’s basic macroeconomic indicators deteriorated considerably, the confidence of its citizens in the state and in institutions in charge of economic stability declined, the government and business elites became increasingly dissatisfied with the policy direction adopted by the Kremlin, and fighting started over the shrinking resources. According to forecasts obtained from both governmental and expert communities, Russia will fall into recession in 2015. The present situation is the result of the simultaneous occurrence of three unfavourable trends: the fact that the Russian economy’s resource-based development model has reached the limits of its potential due to structural weaknesses, the dramatic decline in oil prices in the second half of 2014, and the impact of Western economic sanctions. Given the inefficiency of existing systemic mechanisms, in the coming years the Russian leadership will likely resort to ad hoc solutions such as switching to a more interventionist “manual override” mode in governing the state. In the short term, this will allow them to neutralise the most urgent problems, although an effective development policy will be impossible without a fundamental change of the political and economic system in Russia.

Belarus 2006. OSW Report, January 2007

The presidential election of 19 March 2006, which Alyaksandr Lukashenka won, played an important role in developing the dictatorial political regime in Belarus. In order to ensure Lukashenka's victory, the authorities employed repressive and undemocratic methods, which since then have become permanent elements of the political system in Belarus. They included legal and administrative measures to limit the citizens' freedom, arbitrary ways of applying these measures, actions by the state security institutions intended to intimidate the public, a large-scale state propaganda campaign, and restrictions on civil liberties and freedom of speech. The presidential election strengthened Alyaksandr Lukashenka's political position, as the president extended his rule by another five years to 2011. It also reinforced the repression apparatus, consolidated the ruling group and ensured that the democrats remained marginalised. This has ensured the stability of the Belarusian regime and preserved the country's specific political and economic system.This report aims to present the situation in Belarus since the presidential election in March 2006. Part I, devoted to the internal situation, is a description of the internal political scene, i.e. the ruling camp and the opposition. It also includes a section on the prevailing moods in Belarusian society. Another section presents the economic situation in Belarus and the government's economic policy.Part II examines the foreign relations of Belarus, and consists of two sections: the first describes the Belarusian government's relations with Russia, its single most important foreign partner, and the second its relations with Western countries, i.e. the EU member states and NATO countries. Finally, the last part contains predictions of future developments in Belarus.

Egypt: Changes and Challenges of Political Transition. MEDPRO Technical Report No. 4/May 2011

Hosni Mubarak’s regime and its power system enjoyed remarkable stability for over 30 years. On 11 February 2011, after 18 days of mass protests, the Egyptian president was forced to step down, revealing the unsustainability of the political and economic system that had ensured his continuity for so long. While the revolution of January 25th led to a major success – the fall of Hosni Mubarak – Egypt’s political future is still opaque and exposed to a number of risks. This paper first highlights the factors underpinning the former stability of Mubarak’s regime; it then assesses the causes of its underlying unsustainability, leading to the anti-government popular mobilisation in January-February 2011 and the removal of Mubarak; finally the paper evaluates the prospects for a genuine democratic transition in Egypt, by looking at the main political and socio-economic challenges facing the country.

The Re-emergence of Russia and its Collision Course with Europe. Jean Monnet/Robert Schuman Paper Series Vol. 14 No. 4, March 2014

From the Introduction. In order to understand the historical roots of the current geopolitical confrontation between the EU and Russia, we have to go back to the end of the Cold War and to the catastrophic decade that it was followed by in Russian history. The dissolution of the USSR imposed serious economic hardship for Russia and for all the ex-communist East-European states. Russia was the hardest hit amongst them, as the center of the USSR's economic system it suffered most from the dissolution of regional economic ties. This crisis was just deepened by the IMF's privatization and reform campaign, which imposed austerity measures and state-asset privatization as a “shock-therapy” answer to the country's economic problems. This policy package did nothing to save Russia from economic collapse (which eventually happened in 1998), the only thing it achieved was an even stronger social and economic crisis and the enrichment of the rent-seeking ex-communist top bureaucrats by state-assets, which were sold out under-priced through diverse channels of corruption

Belarus at a crossroads. Bruegel Policy Contribution Issue 2016/02 January 2016

Highlights: • Since the collapse of the Soviet Union in 1991, Belarus has maintained a largely non-market economic system. This did not prevent rapid growth of its economy over a sustained period up to 2011. However, the period of economic growth in Belarus seems to be over.The factors that underpinned Belarus’s growth, mainly the beneficial external environment, have gradually disappeared. As a result, the country is confronted by the need to start the far-reaching programme of market-oriented economic reforms and macroeconomic stabilisation which it tried to avoid for so long. Reform will not be easy, economically and politically. • The potential hardship facing Belarus could be at least partly cushioned by external assistance, in the first instance from the International Monetary Fund and the World Bank. However, the IMF has relatively fresh memories of the failure of its 2009-10 Stand-By Arrangement (SBA) with Belarus, which provided substantial balance-of payments support, but which was derailed by its too-narrow focus on monetary and fiscal quantitative performance criteria, and by insufficient reform commitment on the Belarusian side. Other donors, such as the European Union, might be reluctant to offer assistance as long as Belarus does not improve its poor human rights record and start some political reforms.