23 percent, earmarking much of the increase for oil and gas exploitation in Siberia. Investment in "non- productive" sectors-housing, service industries, schools, and hospitals-already at a postwar low (28 percent of investment) will be further curtailed. Yet the Kremlin has promised its people more con- sumer goods.
The new plan also exacerbates old difficulties: While industrial reno- vation will be concentrated in western Russia, and new energy and raw materials sources will be developed...