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Russia Infrastructure Projects – A Year-End Review

15 6 0

It has been a rollercoaster year of US trade wars, the JCPOA dying a slow death, and the world economy sinking toward recession. The good news is my fear of a major war tipping world GNP into a deep recession did not materialize, despite triggers such as the Iranian downing of a US drone incursion.

More recently we had the cruise missile and drone attack on the Saudi ARAMCO, where on day three, Trump said the Saudis would have to decide what they were going to do, as they would have to pay for it. That instilled more faith in all of us war watchers that the US military commands were not a coiled spring waiting to be launched at the slightest opportunity to get a war started.

We had the news today in the US of the fourth month decline in manufacturing output according to the Institute for Supply Management. The US Department of Commerce also reported that construction spending dropped 0.8%

The US trade wars, despite having some validity in correcting systemic trade imbalances, have been written about endlessly as the major culprit of declining world GNP. There is another layer to the story that contrasts with the limited influence countries can have on their exports when hit with major international sanctions.

For those targeted countries with mature and well-diversified economies, having complete control over domestic development becomes a life preserver in terms of cushioning economic pain inflicted by outside actors. Domestic investment can be a jobs and GNP life preserver to last you until you are on firm economic ground again.

Russia builds its way to the future

In anticipation of a period of international trade war, especially after the Western and NATO coup in Ukraine and the ensuing US and EU sanctions upon Moscow, Putin had earlier begun major infrastructure projects to protect Russia’s huge investment in human capital – its highly educated and trained workforce.

When the Crimean sanctions came, he had a domestic expansion base already started that he could expand upon. One example was the major energy........

© New Eastern Outlook