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Russian Federation

Notes From the Field: Customs Reform in Russia, a Sophisticated Client with a Long Border

Miles McKenna's picture

Editor's Note: "Notes From the Field" is an occasional feature where we let World Bank Group professionals conducting interesting trade-related projects around the globe explain some of the challenges and triumphs of their day-to-day work. The views expressed here are personal and should not be attributed to the World Bank Group. All interviews have been edited for clarity.

The interview below was conducted with Amit Mukherjee, a Lead Public Sector Specialist with the World Bank Group. Amit works in the WBG’s new Governance Global Practice, where much of his work centers on the Russian Federation. Amit was the project team leader for the recent Russian Federation Customs Development Project (CDP), which helped to reform and modernize the country's Federal Customs Service. Approved in 2003, the CDP wrapped up last year—with some impressive results. The Trade Post spoke with Amit about his experience in Russia, what makes reform in the country challenging, and where the two parties’ relationship can bring about positive outcomes in the future.

Don’t Put All Your Exports in One Basket (That Means You, Resource-Rich Country!)

Gonzalo Varela's picture

Baku, Azerbaijan. Source - flickr.com/photos/9464116@N08/7816929566/in/photolist-cUKNPG-fdSCiF-feJL8Y-feaJrS-feurU8-feuqP6-feb4rd-fdVqvc-febfvm-fdVVrX-fdVQWB-fe7YGL-fdSz12-feb68j-feJFA5-fevRZT-fdSAzV-feaNqs-fdVWBi-feJK3C-feanKW-feap55-8Sgjmp-fe5RVE-fe5vvC-fdQwrK-fdQpv4-fe5y7w-fdQtuK-fe5KvW-fe5Agf-fe5Nbm-fe5CjQ-fe5HHs-fe5Sbs-djYTYR-8F59Fq-bkr5Tf-8E86t9-8c3pDH-8c6JB5-8AjSRo-8AjSUJ-8eGwJc-aDwLd2-8AjSWj-8E86Tb-8E4VK2-8E85Mo-a4NYwC-7ZnFFRDiversification of a country’s exports – increasing both the number of products it produces and the destinations of those products – is considered part of the path to development. Many economists and policy-makers see export diversification as an important means for increasing employment and speeding growth. Diversification also makes growth more stable, as it provides protection against shocks; a country that exports many products will not be hit so hard when the price of one falls, and similarly, a nation that exports to a wide variety of destinations will be shielded against a recession in one of them.

But new evidence contributes to a body of work suggesting that countries with an abundance of natural resources might be more prone to export concentration during spurts of high natural-resource prices – mainly in products, but also to a milder extent in trading partners – leaving them more vulnerable to price swings.