Putin Personality Disorder

Russia's president may like to look tough, but he's weaker than you think.

BY FIONA HILL, CLIFFORD G. GADDY | FEBRUARY 15, 2013

Free Marketeer: Putin's outsider status and his pragmatism enabled him to reject two of the central tenets of Communism: state ownership and central planning. History taught him that the Soviet economic system failed. Private property, free enterprise, and the market were superior. But Putin's understanding of capitalism was limited. The business practices he was exposed to during his time as deputy mayor of St. Petersburg did not have a primary emphasis on entrepreneurship, production, management, or marketing. In the 1990s, capitalism in St. Petersburg was more about personal connections to the city government than relations with workers and customers. As such, Putin seems to have emerged from his St. Petersburg experience with the view that winners in the market system are those who are best able to exploit the vulnerabilities of others, not necessarily those who provide the best goods and services at the most favorable prices. This perspective set him up to exploit the vulnerabilities of others, including Russian businessmen, to manipulate them and ensure that they followed the directives of the Kremlin.

MIKHAIL KLIMENTYEV/AFP/GettyImages

 SUBJECTS: RUSSIA, EASTERN EUROPE
 

Fiona Hill is the Stephen and Barbara Friedman Senior Fellow and director of the Center on the United States and Europe at the Brookings Institution. Clifford Gaddy is senior fellow in Foreign Policy and Global Economics and Development at Brookings. They are co-authors of the forthcoming book, Mr. Putin: Operative in the Kremlin.