Are we still trying to frame this as “Russia vs. the West”, without asking what is “decent” for the Ukrainians?
Putin only has his back against the wall because he invaded another country, in defiance of agreements, without any independently-verified justification, and without the solid support of the majority of his people.
Let’s not kid ourselves, Putin is only afraid that he will lose his position, because the Russian people are going to hate being losers, not because they were wedded to the idea of owning a Ukraine that hated them.
As for what it takes to build a prosperous economy.... An objective study of former British colonies has found that their prosperity is almost directly correlated with the retention of two British institutions - the Rule of Law and a disinterested (in its proper sense) public service and judiciary. The distinguishing characteristics of third-world societies (which also exist within first-world nations) are a culture of corruption, lack of respect for the law, and lack of a work ethic. Lack of resources is not a factor.
Creating these may take centuries, but you cannot expect business to flourish in a culture where contracts will not be enforced, legislation and administration are capricious and service is determined by personal relationship.
Russia shows the common signs of such dysfunctional groups. Low productivity, high rates of substance abuse and high-rates of within-group violence ... along with a paranoid distrust of outsiders. The fact that Russians who operate outside of Russia and operate by the normal laws that we are familiar with, often do well, makes no impression.