Economic analysis of the appropriation system

Abstract

Subject. The Presidential Decree On Establishment of a Coordinating Council under the Government of the Russian Federation to Meet the Needs Arising During a Special Military Operation, published in October 2022, marked the beginning of the Russian economy consolidation in the face of external geopolitical challenge from the pan-American geopolitical world. Russia can survive in this confrontation only through the sovereignization and consolidation of its society and economy. Objectives. The study aims to identify the existing economic alienation that hinders the consolidation of the Russian society. Methods. I employ a formalized description of the State in the broad sense, that is, the State as a country, and a formalized description of economic units of the State, called institutions. Results. The paper describes factor and composite capitals of the State and its institutions. This enables to trace the sequence of the Russian economic process: from the factors of economic creation to the methods of final appropriation of the internal part of institutional profits. In this sequence, I revealed the place where the economic alienation takes place, thus socio-economic disunity and tension are constantly recreated in modern Russia. Conclusions. Consolidation of Russian society requires at least partial overcoming of disunity and easing of tension. This can be achieved by legal transition from the existing individualistic way of appropriating institutional incomes to a fairer collectivist way. In addition to the consolidation of society, the transition to a collectivist method of appropriation may lead to the Russian economy development in its creative part.