Quote Originally Posted by Crocodile View Post
Ah, now you're talking business! So, let's be practical here: say you worked hard (or not hard) and earned $10,000. You decide you want to own a car. How would you spend your money? Would you rather buy a new VAZ-produced vehicle like Kalina or a used Japanese car like Toyota or Honda? That was a rhetoric question. So, what stops VAZ from licensing say from Toyota and start mass-producing the Corolla? It would be a bit lower quality than the equivalent Japanese, for sure, but it would still be a way better than Kalina, cheaper than importing Corollas and would therefore satisfy the internal market limiting the import. Does it make sense? So, the cost of licensing and the cost of building a plant could be partially (or fully) sponsored by the Russian Government with the oil money. That was an example of a 'kind of infrastructure' I was referring to. That would also provide more local jobs spurring the GDP. So, in the end, an average Russian citizen could afford a better car for the same money. Do you think that would qualify for the definition of "richer"?
Do you think who in charge of VAZ, GAZ aren't smart as you? They already have done that kind of combined infrastructure. The plants of Toyota, Volkswagen, Renault, GM and others are already present in Russia. It's difficult to be practical in Russia. Either way a choice is pricier and worse. The cheaper foreign car produced in Russia - Renault Logan is 1,5 time more expensive than the analog produced in Hungary.
To build that kind of infrastructure the oil money is not needed. If there is the demand on a product in a market, there is the possibility to return on investment producing the product locally, they take a credit, usual things, and the Russian Government has helped to implement those things like imposing blocking customs on imported cars.
Quote Originally Posted by Crocodile View Post
Again, that depends what's been done with the money. If the money is calmly daydreaming in the banks, than it's worse for Russian economy, since there's no stimulus to diversify the income.
Just to spent money without returning, growth of wages without growth of productivity, increase inflation, worsening competitiveness of the economy.
Quote Originally Posted by Crocodile View Post
Ok, and what do you think should Russia sell?
Released products.