What is ‘Potemkin village’ in Economics?

  • This refers to any kind of false structure built to deceive observers into believing that a situation is much better than it actually is.
  • The term has its origin in the fake villages that were constructed by Russian military leader Grigory Potyomkin in the 18th century.
  • In order to woo Empress Catherine the Great, Potyomkin arranged a show of prosperity during her inspection trip to Crimea in 1787 after the acquisition of new land in Crimea and other regions following Russia’s victory over the Ottoman empire.
  • He made the situation on the ground look better than it was by erecting replicas of pretty towns and fancy fireworks.

Source:TH

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