Social Consequences of the Oil Price Shock in the Resource Rich Post-Soviet Countries

Abstract

This study seeks to determine the impact the fall in global oil prices post-2014 had on the welfare of the populations of three resource-rich post-Soviet states: Russia, Kazakhstan, and Azerbaijan. Changes in welfare will be explored through the analysis of several socio-economic indicators affected by the local currencies’ devaluations. It will be suggested that the single-commodity export dependence of the countries concerned, and the domestic development of non-trade-able sectors faltered in the face of external shocks. Several policy suggestions are offered to mitigate the effects of the economic downturns observed.