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Reviewed by:
  • Russian-American Economic Relations, 1763–1999
  • Marina V. Pereira
James K. Libbey , Russian-American Economic Relations, 1763–1999. Gulf Breeze: Academic International Press, 1999. 270 pp. $35.00.

When considering the scope and depth of James K. Libbey's book, one should keepthe intended audience in mind. Students and novices in the fields of Russian- American history, economics, and foreign relations will find this slender volume to be a useful general survey, written in a clear style, with convenient notes and a bibliography that allows for further in-depth consideration of any particular topic discussed in the book. All three parts of the book—survey, notes, and bibliography—have undergone major revision from a similar work that Libbey published ten years earlier: American-Russian Economic Relations: A Survey of Issues and References (Claremont, CA: Regina Books, 1989). The earlier book was mostly an annotated bibliography with a sketchy overview of pertinent issues, whereas the new volume incorporates bibliographic sources into a serious scholarly survey of Russian-American commercial history from the first illicit trade in 1763 through the end of the Clinton presidency. Similarly, the latest volume devotes much more attention to periods both before and after the Soviet era. Coverage of pre-twentieth century relations has more than quadrupled, and the addition of a section on the post-Cold War era frames an optimistic closure to the tumultuous century.

Nevertheless, Libbey's general interpretation of Russian-American economic relations remains intact. The amalgamated nature of politics and commerce, he argues, inevitably affected the economic relationship of the two countries. Their use of commerce for political ends was evident on many occasions. For example, diplomatic recognition in 1809 and the first treaty in 1824 were implemented to strengthen commercial ties. The twentieth century witnessed frequent clashes between diplomacy and [End Page 179] economics, including the imposition of U.S. economic penalties in 1911 and 1974 to protest Russian anti-Semitism; the Soviet Union's reduction of purchases in 1932 (at the very time that the United States sank into the Great Depression) to retaliate for the U.S. non-recognition policy; and the fierce rivalries of the Cold War, when "the superpowers wielded commerce like a sword, striking blows and counterblows that left economic relations in tatters" (p.2).

Another point that emerges from Libbey's work is that it is not possible to discuss Russian-American economic relations outside an international framework. The constant presence of third parties—be it Great Britain in the nineteenth century, Germany in the twentieth, or blocs of Third World and nonaligned countries during the Cold War—has played a tremendous role in determining the structure, content, and amount of commerce between the two countries. Depending on current friendships and animosities, Russia and the United States juggled their commercial and diplomatic activities.

An equally important, but often overlooked, point weaved throughout Libbey's work is the inherent imbalance of Russian-American economic interactions. One reason for this imbalance has always been the weakness and inconvertibility of Russian (and Soviet) currency, which left Russia in a disadvantageous position of relying on barter agreements, countertrade contracts, and surplus hard currency earnings from other markets. Because Russia historically has bought far more goods than it has sold in the American market, this problem has hindered proposals to expand economic relations. The limits on the relationship point to another imbalance—namely, that the importance of the United States in Russia's economic development is vastly greater than Russia's role in U.S. economic development. Technological advantages have conferred enormous benefits on American businesses—benefits that helped shape diplomacy during the Soviet period.

Because of the disproportionate American influence on Russia's economic development, the United States has provided a steady flow of capital to Russia throughout their relationship. Despite Russia's obstructive laws, prohibitive customs fees, inefficient judicial system, organized crime, overweening government regulations, and other impediments, Americans increasingly have ventured into the Russian economy. Tracing the history of American investments, Libbey concludes that "shortcomings and hindrances aside, the US emerged at the end of the twentieth century as the single most important investor of private capital in the Russian Federation" (p.4). By contrast...

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