Resource Misallocation Quotes
In this context, “rent" means payment is required for the use or right to use anything such as using land for a pipeline, for mining, prospecting for oil, the rights to fish for caviar sturgeon, erecting a building, obtaining an official document, etc. The Russian economic system and culture has created a striving for getting paid to grant rights as opposed to getting paid for making something, creating something, or performing a service for someone. In the breakup of the Soviet Union, some individuals obtained (by various means) the right to charge rent to others for much of the great trove of Russian land, waters and other natural resources. They became billionaires – oligarchs – and many are still paying off government officials to control those rights.
This is one of the great historical quotations. He was, in the 19th century, referring to the past 1000 years of Russian history. The quote has been used many times since then to describe various states and nations and over much shorter periods of time. China and modern North Korea are good examples.
