Development by Decree: The Limits of ‘Authoritarian Modernization’ in the Russian Federation

Abstract

The apparent success of state‐managed market economies has challenged the conventional wisdom that liberal democracy is the norm around which all capitalist countries tend to converge. If the link between democracy and development is more tenuous than we often think, the authoritarian variety of capitalism is not without its own problems, especially with respect to political legitimacy, innovation and regional development. This article explores these issues through the prism of ‘authoritarian modernization’ in Russia. We argue that this strategy is unlikely to succeed, even in its own terms, because (1) the political system fails to create favourable institutional conditions for modernization; (2) the economic system is beset by deeply embedded structural problems; and (3) the regional policy apparatus is torn between the goals of spatial equalization and spatial agglomeration. The article focuses on the Skolkovo Innovation Centre, the main symbol of Russian modernization, to demonstrate the territorial repertoire of the mega‐project, a state‐sponsored development strategy to create innovation clusters from above because they cannot emerge from below.

How mega-events capture their hosts: event seizure and the World Cup 2018 in Russia

“…This neopatrimonial system, in which the distribution of resources in exchange for the loyalty of the elites is common (Yakovlev, 2014), exacerbates event seizure. It turns events primarily into sources for rent extraction rather than projects to benefit the local population, to support long-term urban development or to create economic growth (Kinossian & Morgan, 2014). Fourth, Russia is characterised by a weak rule of law and dysfunctional formal institutions (Shlapentokh, 2006;World Justice Project, 2014).…”

Start-up research universities, high aspirations in a complex reality: a Russian start-up university case analysis using stakeholder value analysis and system dynamics modeling

“…In 2010, then-president Dmitry Medvedev declared 'We have money but we don't have our Silicon Valley' (Saltykovsky 2013) and gave orders to create an innovative center, Skolkovo, to develop a Russian new economic policy (Kinossian and Morgan 2014). SkolTech, a new university with a focus on education and research established in partnership with MIT under the umbrella of Skolkovo, is envisioned to be one of the biggest tech innovation and entrepreneurship centers in the world (Saltykovsky 2013).…”

“…The display of support by Medvedev for SkolTech is worrisome as it does not seem to be shared by president Putin who asserted that SkolTech is not the only the scientific institution in Russia that deserves government support following a veto for its onceapproved exemption from the need to obtain planning permits (Plutocrat Vs. Tech-nocrat 2013). The public also has a skeptical stance towards the new institution as another government corruption venue to stifle the country's financial resources under a noble cause to those in power and their partners, including and not limited to MIT and the involved corporate entities accusing them of seeking their own benefits in the form of tax exempts and improved access to Russia's talent and markets (Kinossian and Morgan 2014;Plutocrat Vs. Tech-nocrat 2013). Others, including existing universities and energy sector advocates, see the mega spending on SkolTech is money squandered (Kinossian and Morgan 2014).…”

“…The public also has a skeptical stance towards the new institution as another government corruption venue to stifle the country's financial resources under a noble cause to those in power and their partners, including and not limited to MIT and the involved corporate entities accusing them of seeking their own benefits in the form of tax exempts and improved access to Russia's talent and markets (Kinossian and Morgan 2014;Plutocrat Vs. Tech-nocrat 2013). Others, including existing universities and energy sector advocates, see the mega spending on SkolTech is money squandered (Kinossian and Morgan 2014). To avoid being in the crossfire between governmental and special interest entities, SkolTech needs to have a robust autonomous governance structure and a high degree of transparency (Salmi, 2009) like its partner MIT and many world-renowned institutions.…”

“…For SkolTech to disprove this skepticism and succeed, it needs to build large-impact businesses and make more money than what it spends as close sources to Skolkovo assert (Saltykovsky 2013). But how will the public realize its societal impact of open and accelerated innovation if it is placed in a gated community with very strict security protocols that isolates it from its surroundings (Kinossian and Morgan 2014)? Graham (2013) suggests that Russia's attempts to regenerate the research sector by attracting high-level scientists, upgrading equipment, and making greater use of talented students provide the basis for innovation, and there are signs for the appearance of high-tech entrepreneurship in the country.…”