We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Economic Growth in Russia after the Collapse of the Soviet Union - Essay Example

Comments (0)
Summary
For economic and political reasons, the Union of Soviet Socialist Republic collapsed in 1991 and broke down into 15 independent states, which came to be called newly-independent states or NIS. During its break-down the economy of the independent states struggled to become market economies. …
Download full paper
GRAB THE BEST PAPER
Economic Growth in Russia after the Collapse of the Soviet Union
Read TextPreview

Extract of sample
Economic Growth in Russia after the Collapse of the Soviet Union

Download file to see previous pages... Russia’s economic performance “after the fall” has been negatively described by many including members of the United States Congress. But in 2003, President Bush praised Russian President Putin over his democratic ideals in ruling present-day Russia.
Let us examine first how Russia encountered those challenges in the early years after the fall of the Soviet Union. Russia first experienced currency devaluation due to large deficit. The newly-independent states (NIS) experienced a dramatic drop in the Gross Domestic Product by more than 40% for the period 1990 to 1995 (qtd. in Mondal 140). This situation led to numerous reforms in the economy, particularly the reconfiguration of the public finances. The international community helped to provide economic reform and infuse foreign aid. This led to an improved GDP.
At the start, Russia had to depend on foreign capital to sustain economic growth because of internal factors like slow revenue collection and excessive state expenditures. The government was also encountering low savings rates and Russian banks refused to provide finance for domestic investment. Research on the Russian economy found that the legal system was “an obstacle to foreign investment” and there was no proper legal regulatory framework to provide efficient foreign trade arrangements. Other factors considered obstacle were spot-market and hierarchical transactions which are common in low-performance economies. The strategy of liberalization and internationalization changed the configuration of demand, price signals and transaction costs because of Russia’s “large territorial distances and fragmented economic space” even if Russia has rich natural resources and human capital.
...
nalization changed the configuration of demand, price signals and transaction costs because of Russia’s “large territorial distances and fragmented economic space” (qtd. in Kirkow 80) even if Russia has rich natural resources and human capital. Liberalization and new foreign trade arrangements were faced with bureaucratic encroachment by means of export and import tariffs and quotas as these were opposed by resource-based industries (in metallurgy, oil, etc.) and “crony legal entities.” There were also external factors like export restrictions imposed by EU regulations and international cartels (Kirkow 81). These factors impeded the flow of foreign capital, technology and technological knowledge, and prevented the creation of new jobs and industries. Two industrial sectors supposed to attract FDI in Russia in 1993-1994 were not considered labor-intensive, and manpower was not a major FDI magnet. Moreover, there was a linking of the traditional and new approaches since the Russian government had “active state participation” over matters relating to Russian exports. This policy applied to what the government called “strategic resources,” such as military hardware, natural gas and precious metals. There were also export restrictions conducted by the government, like issuance of export licenses and quotas, taxes, the limitation of export producers, the monopoly of FTOs in acquiring export products on the domestic market and the policy to remit a portion of the hard currency revenues to the government (Kirkow 82). State-owned banks set up during the Soviet era and still operating abroad continued to provide state control and coordination of foreign trade. These banks were set up to provide credits for Russian firms at lower than domestic interest rates and ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Why did the Soviet Union collapse
The Soviet Union underwent a rapid collapse in the late twentieth century which was inevitable due to the policies and conditions that Russia was undergoing in these times. After the World War II the Soviet Union turned out to be a super power which was becoming a threat for the United States
5 Pages(1250 words)Essay
Tools of Managerial Economics

As a result, the economic analysis and appropriate managerial solutions are found to be quite similar.

One of the most distinctive features of the New Economy is the importance of the scale and scope of economies. A prime focus now is on the concept and viability of ‘scalability’ - the degree to which the total scale and scope of the business can be increased without a corresponding increase in costs (Mankiw, 2006).   

4 Pages(1000 words)Essay
Post-Soviet Russia
The competition encompassed almost all areas of economic, political, social, and cultural patterns. Therefore, the Soviet Union unexpectedly collapsed in 1991. In the wake of its demise, its component republics broke apart, leaving the Russian Federation as the largest piece with a population cut in half that allowed it to remain the largest country in the world.
12 Pages(3000 words)Essay
Soviet Union during Gorbachev Presidency
It will be really myopic to understand the Soviet decline in a narrow perspective of the Cold War era, when in fact their existed a plethora of other credible reasons like a trend towards the democratization of the global politics and an exponential growth of the capitalistic economies at that time (Dukes, 1993).
10 Pages(2500 words)Essay
Russian Economic Growth since 1998
After years of harsh monarchical rule and nearly one hundred years of highly controversial communist dictatorship, Russia is struggling under the pressure to redeem itself as a viable and strong nation. Poverty, deprivation and social exclusion have all been pinpointed as the facets of the new Russian state that need the most work; however a number of researchers and citizens of Western countries seem to have the opinion that these have been significantly improved after the financial crisis of 1998.
10 Pages(2500 words)Essay
Economic Performance of Former USSR States
The essay highlights the GDP growth, investments and debts, the economic relations between countries and economic performance of the countries like Belarus, Ukraine, Moldova, Latvia, Turkmenistan, Russia and other nations which have recently gained independence and separated from the former Soviet Union.
9 Pages(2250 words)Essay
What were the causes of the collapse of the Soviet Union
In support of their contention, these scholars cite the pathetic economic performance of planned economies and the disgruntlement that they generate amongst their unfortunate citizens (Ekedahl and Goodman,
8 Pages(2000 words)Essay
Paper on The Collapse of the Soviet Union and Its Impact on Eurasia
ld at the time, a closer look reveals that the slow decline had begun from the time of Brezhnev, and the trigger provided by Gorbachev’s new thinking precipitated the collapse. The impact of this event was far reaching and the rest of Europe and Asia had to adjust their
9 Pages(2250 words)Essay
Democratization in Russia after the collapse of Soviet Union
It also has a strong state control that affects the transitional process and affects present developments. Another factor that may have contributed to the difficulties experienced in transition was the
4 Pages(1000 words)Essay
Russia In Central Asia
During the 1993 Tashkent meeting, the presidents of these five independent republic states declared that these states from now on would collectively
10 Pages(2500 words)Essay
Let us find you another Essay on topic Economic Growth in Russia after the Collapse of the Soviet Union for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us