4 ms·

Can We Please Stop Comparing Russia’s Economy to Italy’s? Who's comparing Russia's economy to Italy's? Apparently Lindsay Graham did in 2014. CNN in 2022. I l

Can We Please Stop Comparing Russia’s Economy to Italy’s? Who's comparing Russia's economy to Italy's? Apparently Lindsay Graham did in 2014. CNN in 2022. I like this article because it made me think about Russia and it's economy in a way that I didn't fully appreciate before. The article calls out an argument that compares Russia's economy to Italy's economy, using nominal GDP as a measurement. This is supposed to be a Western attempt to brush off Russia as a small(er) player than it really is, but that is a skewed perspective. The use of nominal GDP, especially in times of conflict (and war), does not fully encompass all of the resources that a country is capable of summoning and utilizing. Russia's oil and gas resources, as well as production in wheat, corn, and other earth metals provides it with "substantial leverage" on international markets. Furthermore, when the measurement used to compare the GDP is purchasing power parity (PPP), Russia's economy is more like that of Germany, than Italy. Taken together, the PPP and Russia's domestic production capability, and it seems to make sense why Russia's economy has not completely faltered in the face of sanctions imposed by the West. Could we say the same for Italy? Or even Germany?So all though, CNN is not wrong to make the claim that Russia's economy is equivalent to Italy's in nominal GDP, that comparison fails to take into account the economics of reality. And that's the very definition of propaganda.

Nux 2y ago
Well said, this kind of comparisons always bugged me.
mrighele 2y ago
> Taken together, the PPP and Russia's domestic production capability What does exactly Russia produces ? Most of GDP of Russia comes from export of natural resources [1]. This is by design: raw material extraction can be managed even by corrupt friends of the government even with a lot of "inefficiencies"; meanwhile higher level production is left to languish on purpose since it would be a potential vector for others to gain wealth and power (most of the oil infrastructure in Russia is serviced by western tools, for example). Up to a few years ago I would have added weapons to the list, but it seems to me that they can't produce quality weapons anymore, there are very few moderns Russian weapons in use in Ukraine, for example. [1] https://www.tradeimex.in/blogs/russia-top-10-exports https://www.tradeimex.in/blogs/russia-top-10-exports
pavlov 2y ago
Italy would probably withstand Western sanctions pretty well too, if it had a land border with China who would provide them with anything they need. Russia's strength is not its own economy, which is a total mess.
Salgat 2y ago
You seem to downplay the strength of Italy's status in the EU and its non-sanctioned access to international trading partners as part of its economic strength. Italy, just like Russia, has its own economic advantages.
otikik 2y ago
Are you an AI?
stodor89 2y ago
If I didn't know how incompetent and delusional our "leaders" are, there would probably be a sense of betrayal. But now it's just... void. Well, at least I got to grow up during the best time this world has ever seen, so I'm thankful for that. Putin, Trump, Russians, Americans... are just doing their thing. Can't really be mad about that. I always thought there will never be another war in Europe, because (1) nobody's dumb enough to die for a bunch of crooks and (2) cannon fodder is not a great use of people anyway. Oh well, turns out propaganda is one hell of a drug (on both ends of the political spectrum). Meanwhile... my hotel room in Shenzhen could change window tint with a voice command and automatically detect the language. My Indian colleague's 12yo kid wants to be an astronaut and has a better investment portfolio than me. It is so over.. people have no idea. Like, not tomorrow, not in five years, but certainly by the end of the century. Vivek Ramaswamy tried to give MAGA a hint, but got cancelled for it. (Cancel culture was supposed to be a left-wing postmodern thing btw. Oopsie! Let's pretend we're surprised, ok?)

Nux 2y ago

Well said, this kind of comparisons always bugged me.

mrighele 2y ago

> Taken together, the PPP and Russia's domestic production capability What does exactly Russia produces ? Most of GDP of Russia comes from export of natural resources [1]. This is by design: raw material extraction can be managed even by corrupt friends of the government even with a lot of "inefficiencies"; meanwhile higher level production is left to languish on purpose since it would be a potential vector for others to gain wealth and power (most of the oil infrastructure in Russia is serviced by western tools, for example). Up to a few years ago I would have added weapons to the list, but it seems to me that they can't produce quality weapons anymore, there are very few moderns Russian weapons in use in Ukraine, for example. [1] https://www.tradeimex.in/blogs/russia-top-10-exports https://www.tradeimex.in/blogs/russia-top-10-exports

pavlov 2y ago

Italy would probably withstand Western sanctions pretty well too, if it had a land border with China who would provide them with anything they need. Russia's strength is not its own economy, which is a total mess.

Salgat 2y ago

You seem to downplay the strength of Italy's status in the EU and its non-sanctioned access to international trading partners as part of its economic strength. Italy, just like Russia, has its own economic advantages.

otikik 2y ago

Are you an AI?

stodor89 2y ago

If I didn't know how incompetent and delusional our "leaders" are, there would probably be a sense of betrayal. But now it's just... void. Well, at least I got to grow up during the best time this world has ever seen, so I'm thankful for that. Putin, Trump, Russians, Americans... are just doing their thing. Can't really be mad about that. I always thought there will never be another war in Europe, because (1) nobody's dumb enough to die for a bunch of crooks and (2) cannon fodder is not a great use of people anyway. Oh well, turns out propaganda is one hell of a drug (on both ends of the political spectrum). Meanwhile... my hotel room in Shenzhen could change window tint with a voice command and automatically detect the language. My Indian colleague's 12yo kid wants to be an astronaut and has a better investment portfolio than me. It is so over.. people have no idea. Like, not tomorrow, not in five years, but certainly by the end of the century. Vivek Ramaswamy tried to give MAGA a hint, but got cancelled for it. (Cancel culture was supposed to be a left-wing postmodern thing btw. Oopsie! Let's pretend we're surprised, ok?)