Is Private Capital Capable to Modernize Russia’s Economy?

Abstract

Liberalization and privatization of Russia's economy have led to formation of not civilized but peripheral capitalism called to serve the developed countries. That's the cause of one-sided raw material orientation of Russia's economy and also of massive outflow of capital. In connection with the absence of investment sources of economic growth the author doubts the official data of the Ministry of Economic Development and Trade of the RF. Generalizing historical experience of Russia's development in XX century, analyzing current situation through the prism of this experience he comes to the conclusion about the inability of present-day Russian private capital to modernize national economy.