Comment by btilly

Three more factors matter a lot, and get missed.

The first is corruption. When the Iron Curtain fell, every country behind it suffered from corruption. The Russian word for how it worked was блат, pronounced blat. When the official way of doing things doesn't work, the way that works is informal favor trading. I have a friend, who knows a friend, etc. This acts as grit in the economic system, and makes everyone less productive.

The second was the pressure to not stand out too much. One proverb is Инициатива наказуема, pronounced initsiativa nakazuema. It translates to, "Initiative is punishable."

Why? Well, imagine that you're a middle manager. It's a dog eat dog world. You know that everyone below you, wants your job. Everyone above you, knows that you want their job. You got your role by sucking up to the people above you. Those below you, got theirs by sucking up to you. You don't want your employees to be utterly incompetent - then you won't be able to look good. But you also don't want any of them to shine - then your boss might think that they should have your job. This encourages bland mediocracy. Everyone strives to be just good enough for their job, while sucking up well enough to keep it.

The result is a kind of learned incompetence. But a nation filled with this kind of incompetence, will be unable to sustain innovation.

The third is alcoholism. Russia is basically a very large, very dysfunctional, alcoholic family. It is hard to overstate how true that is. The most popular vodka at the end of the Soviet era came in 750 ml bottles, that did not have a resealable cap. Because no true Russian would leave a bottle half-full. Anyone who didn't drink, was odd. A group that got together without drinking might be suspected of plotting revolution. This is yet another drag on Russian society.