English Edition
EIR News Service
Washington, D.C.

Subject: Book Announcement
Date: Mon, 2 Apr 2007

My book The Anatomy of Russian Capitalism is now
out in English. The English edition is
substantially updated from the Russian book, which came out in 2004.

As a long time JRL participant and contributor, I
hope I don't need much of an introduction.
However, at least some of you might be interested
to know what other people say about me on the back cover:

James Galbraith, Professor, the University of
Texas at Austin: "Stanislav Menshikov has been
our most astute observer of the Russian economy
for many years. He saw that communism needed
reform a generation ago, when it might have
worked. He recognized the reforms after communism
for the disaster they were. Now he gives a
comprehensive account of the state of capitalism in today's Russia."

I believe that this new book will be useful to
the reader in many ways. For the ordinary reader
interested in Russia, it provides a comprehensive
picture of how its economy is structured and how
it works, as seen from the vantage point of a
Russian expert with vast knowledge of the western
world. In a sense it is like a small
encyclopedia, covering all major sectors of the
Russian economy from mining and manufacturing to
banking and foreign trade, from GDP dynamics,
income distribution, economic concentration and
government policy, to the new bureaucracy and
small business, the super-rich elite and the
emerging middle class. The book is full of
statistics and other useful data on all these and
various other aspects the country's life. A
helpful guide to understanding today's Russia.

The Russia expert will find in-depth analysis of
the forces and processes that explain what is in
store for Russia in the near and more distant
future. Lop-sided development is traced to
excessive economic over-concentration that
restricts free competition and profitable
investment in many sectors of the economy.

Here is the story of the new Russian oligarchs:
who they are, and how they amassed their fabulous
fortunes during the chaotic 1990s and still
continue to do so today. As a result, the Russian
economy has fallen into a trap, from which the
only escape route leads through a fundamental
break with the oligarchical system. Far from
doing that, the current Russian administration is
adding new government monopolies in oil and gas,
as well as in industries associated with the
military-industrial complex. It is less than
certain that copying the Korean model of building
up 'chaebol'-type concerns will work on Russian
soil. However, the emerging Kremlin financial
industrial group of President Vladimir Putin's
second term undoubtedly represents a shift in
another way - laying an economic foundation for a
more authoritarian political regime. From this
perspective, Russia's economic and political
future, as well as its global role, do not look
encouraging. Some of these developments may also
promote centrifugal tendencies in the Russian
Federation and endanger its unity.

In six chapters, The Anatomy of Russian
Capitalism examines these difficult processes from different standpoints:

Chapter 1. A General Description of Russian Capitalism
            1.1 Is this capitalism?
            1.2 Bolshevism in reverse
            1.3 The legacy of socialism
            1.4 Directors turned into capitalists
1.5 Bankers as money-launderers
1.6 Socialism: another source of capital
1.7 Why not managerialism?
1.8 A historical reminiscence
1.9 Surplus value: a statistical study
1.10 The distribution of profit by sector
1.11 The nature of export superprofit

Chapter 2. The Composition of Capital
            2.1 The accumulation of capital
            2.2 Consume, or resell?
            2.3 Where to hold capital: at home, or abroad?
            2.4 The relationship of industrial and banking capital
            2.5 The concentration of capital in the productive sector
            2.6 Where the oil giants came from
            2.7 The battle for metals
            2.8 Sectors producing for the domestic market
            2.9 The defense industry
            2.10 The oligarchy's industrial financial groups

Chapter 3. State Capital, Millionaires and Managers, Small Business
            3.1 The state sector and the natural monopolies
            3.2 The state and the defense industry
            3.3 The state sector: the Kremlin oligarchical group
            3.4 Millionaires and managers
            3.5 Small business and its prospects
            3.6 The shadow economy, organized crime, and corruption

Chapter 4. How our economy works:  Production and income distribution
            4.1 The composition of national
income: the relationship of labor income to gross profit
            4.2 Income distribution inequality,
social stratification, and the middle class
            4.3 The composition of GDP: personal
consumption, investment, and government consumption
            4.4 GDP dynamics
                        The crisis and stagnation of 1992-1998
                        A period of growth (after 1999)

Chapter 5. Economic policy
5.1 Structural reforms
5.2 Budget and tax policy
5.3 Credit and monetary policy
5.4 Economic policy as a whole

Chapter 6. Russia, the world, and the future
6.1 Russia in the global capitalist system
6.2 The inertial system of Russian capitalism
6.3 Possible alternatives and policy solutions

The Anatomy of Russian Capitalism
By Stanislav M. Menshikov
Translated from Russian by Rachel B. Douglas
EIR News Service - 2007
ISBN 978-0-943235-22-6
398 pages, soft cover, includes index
Cover price $30.00

Order from EIR News Service
P.O. Box 17390, Washington DC, 20041-0390

JRL readers who would like to order a copy at a
discount may write for info on that to the author
directly by e-mail at (copy to


See also about this book: From John Helmer’s column in Russia Journal, May 5, 2007