Undeniably Russian economic success over the past six years: GDP rose from a drop of 10% annual growth of 7%, wages rise rapidly, the industry recovers almost all external debt was paid off and today the country has fourth largest international reserve.
      In the 90s, the Western press was publishing daily news about Russia: the country's situation was disastrous in almost every aspect, which generated good material for russófobos duty.
     Today, the vast majority of Westerners still ignores good news about Russia, and still imagine the country as it was 8 years ago: widespread unemployment, employees who do not receive their wages, industries that close tycoons and billionaires who send all their fortunes to abroad. The Russian economic situation still can not compare to the richest countries, but is on track, and in a few years Russia will be the sixth largest economy in the world and second in Europe.
     Only now some media began to notice the Russian recovery. However, attribute the success to a factor of luck: the great appreciation of the price of oil in recent years. Really, to Russia (the second largest oil producer in the world), each increase in price means an immense increase in revenues.

    And the price of oil in five years jumped from about 25 dollars a barrel to almost 80. However, a comparison of some economic data from Russia to Saudi Arabia (the largest oil exporter in the world and a country that still relies almost exclusively this feature) show that Russian growth is due to more factors than the price of oil. Although export more oil than Russia, Saudi economy is far from having the same success as the Russian.
     Russia's economy grew in 2004 by 7.2%. Saudi Arabia, 5%, a considerable growth, although lower than the Russian. However, Saudi Arabia has a debt reaches 75% of GDP, while Russia is no more than 15% (and rapidly decreasing).
     The Russian GDP is the 9th largest in the world; Saudi, the 31st. The per capita income in Saudi Arabia is $ 12,000, the largest oil exporter with a population of only 25 million, that of Russia, $ 11,000, with a population of 143 million. And the international reserves of Russia arrived in June this year to 246 billion dollars, and it is estimated that at the end of the year will be 280 billion.
     What explains these differences? Saudi Arabia produced 10.37 million barrels of oil per day in 2004, Russia 9.27 million. If oil is the only cause of Russian economic success, as it is possible that Saudi Arabia does not have a better situation than Russia, since it exports more oil? The answer is simple: oil is not the only cause of Russian remarkable recovery.
      Although Saudi Arabia has worked hard to diversify its economy, 75% of the national budget still comes from oil. In Russia, the economy is very diverse: the country's naval industries, aerospace, war, nuclear, electronic, pharmaceutical and consumer goods.
       And the main driver of Russian economic growth is domestic demand, which has increased 12% per year, even more than GDP. This means that the Russians are with a purchasing power strengthened, and therefore consume more, and higher consumption, in turn, activates the industry and commerce, in addition to improving the standard of living of the population. And trust that the economy will continue on this track, but it would save their surplus rather than spend them.
     It's a formula that Brazil should learn from Russia and Argentina, both countries have experienced crises terrible recently but are recovering fast thanks to increased purchasing power. In Argentina, for example, the minimum wage is 800 pesos, a little less than 800 reais, and the cost of living lower than in Brazil. Both Argentina and Russia have higher inflation rates than Brazil (approximately 10% per year, somewhat high but perfectly under control), however, economic growth, job creation and increased purchasing power outweigh rising pricing. Brazil has low inflation, but credit is expensive, there is high unemployment, wages are kept very low and the economy barely grows 3% per year.
     The Russian success is due not only to oil, but also to industrial growth and improvement in the population's purchasing power. Russia does not want to be an exporter of raw materials for a long time, and its industry increasingly expands throughout the world, particularly aerospace, armaments and energy. Even if oil prices lower levels of 2001-2002 (which rarely happen), it will not affect much economic growth and recovery in the level of life.

Carlo MOIANA...