Russia is currently undergoing a significant transformation as it shifts its economy and civil service towards a wartime footing. President Vladimir Putin, who was re-elected for a fifth term on March 17th, is increasingly relying on a new generation of loyal elites, leaving behind the old “system liberals” who are often the most competent individuals in the country. This shift in leadership is not only about political longevity but also about the professional management of the economy and finance in Russia.
Over the years, Putin has cultivated a group of loyal elites who prioritize loyalty to the Kremlin over professionalism. This new generation of elites, often Western-educated, sees their careers as more successful in authoritarian Russia than in the democratic West. Additionally, individuals with backgrounds in security services, police, and the military have also risen in prominence in Putin’s leadership circle. The pressure on the “old” elites has increased significantly in recent years, with dissent seen as a form of betrayal.
Putin’s strategy to reward loyalty includes policies such as nationalization of elites’ assets and prohibiting dual citizenship. He has also promoted veterans of military operations into public service positions. These trends indicate a shift towards an authoritarian and militarized elite in Russia.
The purge of old competent guard from economic and financial sectors is further exacerbating internal conflicts within Russian bureaucracy. The new reality of “war economy” requires new leadership and management methods but it remains uncertain whether these changes will improve or worsen Russia’s situation. The current trajectory suggests a radical restructuring of Russian governance and elite power dynamics with potential implications for internal stability and economic performance.
In conclusion, Russia’s transformation towards a wartime footing is driven by political considerations rather than economic ones. Putin’s reliance on loyal elites over competent ones is concerning for both internal stability and economic performance. Whether this shift will lead to positive change or not remains to be seen.