2003 should have been a banner year for the Russian economy--GDP soared for the fourth consecutive year, while unemployment, poverty, and inflation fell. Real disposable income grew as well, and the Russian stock market scored among the best performing in the world. But Russia’s unprecedented boom has taken place in an increasingly troubling political context. The Kremlin’s attacks on the YUKOS oil company and its CEO Mikhail Khodorkovsky, coupled with its blatant disregard for international standards in December’s Duma elections, have startled many investors, prompting foreign direct investment--which is already low--to sink even further.

What should foreign and Russian investors expect in 2004? What are the Russian economy’s greatest sources of strength, and what are its structural weaknesses? How practical is President Putin’s pledge to double GDP within a decade? How much will the non-oil sectors of the Russian economy contribute to its development? What will happen to the ruble, which has been steadily appreciating against the dollar?

Experts will convene at AEI to address these questions and to examine the future of the Russian economy.