What is 'Potemkin village' in Economics?

October 02, 2017 12:15 am | Updated 12:15 am IST

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.

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