Russia consolidates its space industry into one giant government-owned corporation.


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Russia consolidates its space industry into one giant government-owned corporation.

While the U.S. is working to increase the number of space companies and thus the competition to get into space, Russia is returning to its Soviet-era roots. This second story about this consolidation includes this telling quote:

The country is set to radically centralize its space industry in a bid to combat major inefficiencies and cut down on the misuse of funds under plans unveiled by Deputy Prime Minister Dmitry Rogozin, who oversees the defense and aerospace sectors.

This decision does not really bode well for Russia’s effort to compete on the open market. You never solve inefficiencies or cut costs by eliminating competition. Instead, the lack of competition encourages inefficiency and increased cost.

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2 comments

  • Scott

    The top-down management styles of powerful, centralized governments seldom go in any other direction. Always tighter and tighter control – greater restriction of independent initiative. They fear liberty because it’s not in their power to fully regulate the individual. I fear we are on the same road.

  • “Russia is returning to its Soviet-era roots.”

    As I have been telling many people for a few years now, this is part of a bigger strategy. The Russians have rolled up many of the reforms since the USSR fell, and there were defectors in the 1980’s and 1990’s that told the West that Russia would pursue false reforms and liberalization, while the monetary and political breakers would be reset. The Russian government is really only following a long-duration version of a “5-Year-Plan”, wherein they have been catching their breath.

    We were told even earlier that we would be subverted from within, and that Russia would bury us when it was over. What Scott refers to is most definitely a product of that strategy. Look at the president and Obamacare, the Congress and what they just did by breaking parliamentary rules to get rid of filibustering rules. Look at all the stories about police over-reach. The change to top-down control and the nanny state is anti-American and anti-Western. We are in trouble.

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