Resource rents and the Russian economy

The paper, by two prominent American specialists on the Soviet and post-Soviet economies, explores the role of Russia's energy resources. The authors offer a more inclusive definition of oil and gas rents than is traditionally given and analyze how the mechanisms for distributing those rents have changed over time. They show how fluctuations in the level of rents have played a key role in Russian economic performance. Oil rents, in particular, are shown to have varied widely over the past 35 years. The paper also examines how the distribution of rents affects the sustainability of production. It concludes with some reflections on the proper organization of the energy sector.