Managing Economic Crisis
The Russian government is dealing with two opposing priorities: managing economic difficulties, while denying their existence. The government launched a plan to support budget-funded parts of society, while staving off full-throated economic crisis. With high interest rates creating challenges for most industries, it’s hard to stop companies from turning to layoffs, and to stop the opposition from channeling public distrust into street demonstrations.
Economic challenges and turbulent foreign policy have stalled Russian soft power ambitions, based on a major global development effort. Since Konstantin Kosachev resigned from Rossotrudnichestvo, which was to become a Russian development aid distribution agency, it is likely to remain a secondary government institution.
The former Georgian republics of Abkhazia and South Ossetia have stepped closer to Russia, as they work on integration agreements with Moscow. Though Russia has avoided making either region part of its territory, as in the case of Crimea, the arrangements essentially eliminate border controls and integrate the military and law enforcement.
Following a sharp decrease in street protests in 2014, after the rally ‘round the flag effect of Crimea annexation, more than a quarter of Russians again say street protests are possible near their homes. But the percentage of people who think they’ll be personally be involved in such demonstrations is still much lower than in 2011-2012.
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