Russia is heading to incredible poverty – here’s why

Ken Rogoff, Harvard University economics professor, told Davos delegates today that sanctions are having a significant impact on Russia’s economy.

The Guardian reports Rogoff hopes there will be regime change in Russia, but points out that this is hard to achieve:”Look at Iran, look at North Korea, look at Venezuela, look at Cuba, that’s where Russia’s headed.”

A ‘giant Iran’ may be the best description, Rogoff says, with “incredible poverty compared to what Russians have become accustomed to.”

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Rogoff believes Russia’s economy is weaker than the official statistics, saying he doesn’t believe anything Russia says when it comes to numbers.

“I would absolutely not draw the conclusion that sanctions are not working. They are second to military intervention, but they’re absolutely important,” Rogoff insists.

He also says there are examples where sanctions can achieve regime change, such as in apartheid South Africa.

Rogoff says: “If you keep up sanctions for a long time, and make them stronger and stronger, they do work”