The Paradoxical Truth of Adam Smith: Absolute Advantages of Countries in the Context of Russian Reality

Adam Smith, the Scottish economist of the 18th century, is considered the father of modern economics. In his work "The Wealth of Nations" (1776), he outlined the theory of absolute advantage, which explains why countries benefit from specialization and trade. According to Smith, each country should focus on producing goods that it can create more efficiently than others, meaning with lower resource costs per unit of output. Then, through trade, nations exchange these goods, increasing overall welfare. For example, if Portugal produces wine cheaper than England, and England produces cloth, then specialization and exchange make both countries richer.

This idea seems simple and logical, but in the real world, it takes paradoxical forms, especially when it comes to countries with distorted economies, such as the Russian Federation (RF). Russia, despite its vast natural resources, demonstrates a classic example where absolute advantages turn into a trap. Let's examine why the RF cannot compete in "peaceful" sectors but, according to some assessments, has found its "niche" in something destructive—weapons, fear, and terror.

A Test Balloon with Shaheds: How Reality Turns into Absurdity

When Russia launched 19 kamikaze drones at Polish territory, the reactions were more revealing than the incident itself. Moscow immediately declared: “It wasn’t us.” Warsaw and NATO responded: “This is not an attack, but a provocation.” A formula meant to reassure instead became the first signal — a test balloon sent up into the skies of European security.

Europe Dozes Off with the Fairy Tale of a “Weak Russia.” But a Weak Russia Is the Perfect Predator

It’s laughable to read how, in 2025, Western politicians and think-tankers nervously reassure their citizens: supposedly, by 2030, Russia won’t dare attack Europe because it’s too exhausted by the war against Ukraine, isolation, and sanctions.

Let’s tear this myth apart.

The Three Cynics: How the US, China, and Russia Divide the World While Europe Watches

 The global geopolitical chessboard has rarely been this tense, and scenarios that seemed like fantasy yesterday are now nearly obvious. At the center of this global game are three players, each acting with cynical pragmatism: the US, China, and Russia. While Europe sinks into toothless consultations and expressions of “concern,” the big players are quietly making deals, shaping the world’s future on their own terms.

The World According to Trump, Putin, and Xi: Newsweek Drew the Map, We Decipher It

Journalists from Newsweek created a map that imagines the world divided among three powers: the USA (Trump), Russia (Putin), and China (Xi). This geopolitical "triumvirate" looks provocative — but if you think carefully, each part of the puzzle carries its own internal logic.

Presidential election in Belarus and Russian expansion - how may it be

On August 9, presidential election in Belarus will be. It could be the most interesting event in the country for last thirty years.

Historical cycles in Russia

The political life of Russia develops with a cycle of 36 years and three sub-cycles of 12 years each.