Russia’s Resource Curse The Effects of Oil on Democracy 1998-2008

Abstract

Russia’s intense increase in oil production between 1998 and 2008 has occurred simultaneously with decreases in Russia’s overall developmental measures dealing with corruption, liberty, and economic development. However, as Russia proceeds to generate more revenue from its natural endowment, classical economic theory suggests Russian economic and political indicators should be improving with each new barrel of oil produced, not weakening as has been the case. This paper examines how aspects of the resource curse logic may be used to establish a sufficient link between oil and democracy in Russia. Through an analysis of Russia’s oil economy, key government players, civil society, and the Russian media, this paper illustrates the negative societal effects of increased oil production in Russia and hence the existence of a resource curse.