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Russia: Economic Challenges and Changing Agenda - Research Paper Example

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Name: Instructor: Course: Date: Russia: Economic Challenges and Changing Agenda. Russia, also known as the Russian federation, is one of the richest countries in the globe. This is due to the vegetation cover, oil reserves and other minerals. Russia is ranked ninth in terms of economic growth to its citizens and sixth, in terms of purchasing power…
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Russia: Economic Challenges and Changing Agenda
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Russia: Economic Challenges and Changing Agenda

Download file to see previous pages... Through these scientific discoveries and explorations Russia has maintained its world title as one of the strongest nations on earth (Aslund, Guriev and Kuchins 118). The reason why Russia has a stronger economic gap, even from other western countries, is because Russian people indulged in industrial and postindustrial development much earlier than other countries, including the European countries. Its economic development is based on foreign exchange, which includes the sale of oil and gases. However, Russia does not only depend on the oil and gas. It has also had a remarkably high export rate of other resources such as timber and metal. These resources have ensured that Russia remains at the top of other countries that are even considered strong (Robinson, N 23). In terms of macro-economic and political factors, Russia has been able to maintain its economy at the top. Through the export of oils and other natural gases, this country has been able to moderate its sales. This has prevented the occurrence of a smaller or larger margin. This ensures that the country does not suffer a lot, when it is hit by a significant economic crisis. It has also focused on using the available resources of man power and taxes from its citizens. This functions to strengthen the country economically. This is a unique way, in Russia which is able to attain self sustenance. This is the situation where other countries take loans from the international communities and banks. It has also employed a stronger form of governance through the political platform. Through this governance, this country is a corruption and impunity free zone. However, the Russian administration also suffers at times (Sachs and Pistor 89). Also, the Russian economy has its own macro-economic toughness. Some of these macro –economic conditions are past the ability and powers of the government and other administrations. The Russian work force has been decreasing for quite some time. This is because the death rate is proving to be higher than the birth rate. The best way out for the Russian government is to allow people from other countries to come into their country and make a stronger species of people reduce the death rates. Also, the Russian government can raise the taxes of natural gases and oil. This can function to control and reduce the waste of these important resources. This started as far as when the Russian economy started to grow, over 70 years ago. This was even before the modern day technologies were in place. Telecommunication is also a serious problem. In the year 2006, lots of houses in Moscow had no cable connection of both internet and commercial telephone lines. This led to little or no interaction to the outside world. Apart from this lack of telecommunication, there is the issue of man force. Russia has introduced different machines into the different industries that are existent in the nation. However, there are skills that can only be in the human mind. Humans are also extremely flexible, when it comes to decision making. Therefore, they ensure that everything runs smoothly. This also functions to ensure that small microenterprises rise to bigger firms (Aslund, Guriev and Kuchins 145). Russian Human capital has a remarkably high role on the nation economy. This is because the man force brings up ideas and innovation in different sectors of the economy. ...Download file to see next pagesRead More
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