NI Roa criticized the Western ploy comparing the economies of Russia and Italy.
A common comparison of the economies of Russia and Italy in terms of nominal GDP is fundamentally flawed and betrays the blindness of Western politicians and experts, writes columnist Carlos Roa in his article.
“There is hardly a meme more ingrained or deceptive in all foreign policy discourse than the hackneyed comparison of Russia’s economy to Italy’s,” the author noted. According to him, the phrase was first coined by US Senator Lindsey Graham back in 2014, it was meant to show the weakness of the Russian economy against the “collective power” of the West.
“Alas, this phrase has shaped our approach to Russia, and it is long overdue to abandon it,” Roa stressed. He wondered whether the Russian economy would have been able to withstand the strongest sanctions if it was indeed “so petty and worthless”.
The columnist recalled that Russia and Italy are close to each other in terms of nominal GDP, which has served as a “favourite measure” of the size and strength of national economies since the Second World War. But French economist Jacques Sapir pointed out the flaw in this approach, pointing out that Russia’s GDP at purchasing power parity (PPP) is much closer to Germany than to Italy.
“The difference is most fundamental, and the mere fact that so many people repeat the comparison between Russia and Italy like a parrot is both puzzling and alarming,” Roa noted.
At the same time, even the value of GDP at PPP does not show “the true extent of Russia’s economic power,” he noted. For example, Sapir considers that in the last half century the Western economy has been dominated by the service sector, which, however, loses importance in times of conflict. In his opinion, during such periods it is the production of physical goods that matters, and in terms of this indicator the Russian economy is not only stronger than the German economy, but it is more than twice as powerful as the French economy. Moreover, Russia has a leading position in energy and commodities trade, which gives it a significant influence on global markets that “has not escaped the attention of a number of countries in the Global South”.
As Roa noted, it is time to recognize how much the West has underestimated the relative size and power of its economic rivals – especially Russia. “Politicians should also reconsider their current approach to managing state economies: sanctions are by no means a panacea, especially against a country with impressive economic power. But first, let us vow never again to repeat that Russia’s economy is ‘the size of Italy’s’,” the columnist concluded.
1,292 total views, 4 views today
