StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Where Will Russia Be in the Year 2050 - Essay Example

Cite this document
Summary
The paper "Where Will Russia Be in the Year 2050" discusses that the collapse of the Soviet Union in 1991 was a major event in the history of the Russian economy. Since then, Russia has been trying to develop a market economy that would ensure consistency in economic growth…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER93.4% of users find it useful
Where Will Russia Be in the Year 2050
Read Text Preview

Extract of sample "Where Will Russia Be in the Year 2050"

In 1991, Nikolayevich Yeltsin, the first president of the Russian Federation, announced that Russia would follow a radical as well as market-oriented reform along with the elements of ‘shock therapy’ (Basic Information on Russia). However, Yeltsin’s policy resulted in the economic collapse of Russia, which pushed millions of people into poverty. The removal of Soviet price controls and the 1998 Russian financial crisis resulted in hyperinflation in at different times. During this period, corruption and crimes immensely spread across the nation and worsened the situation.

The Russian economy underwent severe difficulties during its transition from a centrally planned economy to a free market system. However, Russia could effectively overcome the serious financial crisis in 1998. During 2000-01, the country met its extra debt services, made huge advance payments on IMF loans, and also built up Central Bank reserves. In 2002, large current account surpluses considerably improved the trade and industry of the nation. As a result of higher Ministry of Finance and Eurobond payments, the country’s debt rose to $19 million in 2003. The Russian government established the Stabilization Fund of the Russian Federation in 2004 with the intent to address oil price falls. This provision brought fruitful outcomes to the Russian economy during the past few years.

Vladimir Vladimirovich Putin became the president of Russia in 2000 and he continued until 7th May 2008 by winning the 2004 presidential election also. Under his period, Russia achieved tremendous economic growth. The nation’s real GDP growth for the last 10 years was 10% (2000), 5.1% (2001), 4.7% (2002), 7.3% (2003), 7.2% (2004), 6.4% (2005), 8.2% (2006), 8.5% (2007), 5.2% (2008), -7.8% (2009), and 4% (2010) (Global finance). Although the 2008-09 Russian financial crisis shook the economy, the present signs show that the country recovers faster. When many of the rich economies still struggle with the 2008 global crisis, Russia’s faster recovery predicts a prosperous future for the country.
The Russian economy successfully overcame the 1998 crisis. Subsequently, the unemployment rate got decreased, and investment, production, and consumption got expanded. At the same time, the country has begun a series of fruitful economic reforms including the enactment of fundamental tax reform and the strengthening of its banking system.

Although these improvements are the potential enough to stabilize the future growth of the Russian economy, the nation would face severe issues if they happened another way. The present trends show that the country maintains promising GDP growth and a positive balance of payments; they would greatly contribute to the economic future of Russia. In addition, as reported in World Economic Forum, Russia keeps a potential collection of untapped energy resources, sustainability in low-interest rates, strength in currency, and abundant liquidity. These economic features can raise Russia to the world’s top by 2050. The country’s inflation rate was very high (14.1%) in 2008 whereas, it fell to 11.7% and 6.9% in 2009 and 2010 respectively.

The huge decrease in the inflation rate from 14.1% in 2008 to 6.9% in 2010 indicates the strength of the country’s economic policies. Similarly, Russia also maintains a satisfactory employment rate over the past few years; the unemployment rate of the country was 6.4%, 8.4%, and 7.5% in 2008, 2009, and 2010 respectively (World Economic Forum). It seems that the nation’s banking system is very strong and therefore it can effectively respond to economic contingencies. Since Russia is the world’s largest country in total area, it has opportunities for further business expansion. However, the 2050 Russian economic status would also depend upon the political future of the nation. Although the banking system and other promising economic features stabilize the nation’s economic growth, rigorous stock market regulations remain a potential growth hurdle.

From the above discussion, it is clear that Russia possesses a range of potential economic features that would lift the country to the world’s top by 2050. The period of Putin’s presidency witnessed tremendous economic developments. Now the country has the potential to par with the economic status of any other developed country. If no other unforeseen contingencies occur, by 2050 Russia will be the most powerful nation in the world in terms of money and political power. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(Where will Russia be in the year 2050 Essay Example | Topics and Well Written Essays - 750 words, n.d.)
Where will Russia be in the year 2050 Essay Example | Topics and Well Written Essays - 750 words. https://studentshare.org/macro-microeconomics/1753815-where-will-russia-be-in-the-year-2050
(Where Will Russia Be in the Year 2050 Essay Example | Topics and Well Written Essays - 750 Words)
Where Will Russia Be in the Year 2050 Essay Example | Topics and Well Written Essays - 750 Words. https://studentshare.org/macro-microeconomics/1753815-where-will-russia-be-in-the-year-2050.
“Where Will Russia Be in the Year 2050 Essay Example | Topics and Well Written Essays - 750 Words”. https://studentshare.org/macro-microeconomics/1753815-where-will-russia-be-in-the-year-2050.
  • Cited: 0 times

CHECK THESE SAMPLES OF Where Will Russia Be in the Year 2050

Small and Medium Enterprises in Russia

The paper "Small and Medium Enterprises in russia" discusses that generally, SMEs have to be efficient if they have to exist.... In 1993, SMEs in russia formed 85.... While in the Central and Eastern European nations, the SMEs contributed to the employment and the GDP, in russia the SME sector started stagnating after the initial surge (Guriev & Polischuk, 2002).... The number of small firms per capita in russia was about 1/10th of Poland....
6 Pages (1500 words) Essay

The Role of Government in Promoting International Businesses in Russia

The paper discusses the role of government in promoting international businesses and the entry of foreign businesses like multinational corporations in russia.... It would also show why russia has become an attractive destination for foreign firms.... where the market still shows signs of its communist heritage vis-à-vis market control....
8 Pages (2000 words) Term Paper

Central Bank of the Russian Economy

The paper "Central Bank of the Russian Economy" describes that russia in the past two years is pursuing macroeconomic stability.... The Government and the Central Bank of russia are working to achieve new economic objectives.... russia has to deal with persistent economic problems, which include: The consensus and eventual policy position taken in russia was that for the Russian economy to develop and benefit from the increasing integration of the global market and trade, policy reforms must be instituted....
8 Pages (2000 words) Essay

Russia Impact on the Shape of the Global Energy Market

This essay "russia Impact on the Shape of the Global Energy Market" focuses on russia who is expected to be a key player in the global energy markets of the future.... Another interesting political development to have had a bearing on the Russian energy industry is the stand-off between russia and Ukraine that posed a serious threat to gas supplies to Western Europe.... For example, 'It is estimated that russia's renewable energy potential could provide as much as 30 percent of the total potential energy supply (TPES)....
5 Pages (1250 words) Essay

The Level of Success in Transition between Russia and Ukraine

This paper "The Level of Success in Transition between russia and Ukraine" focuses on the fact that as 1991 set in the federation of russia had about 23,776 large and medium-sized industrial firms as well as approximately 170,000 small enterprises which were mostly retail shops.... major contribution to the deep fall in the output of the economy of russia was the production network's disintegration.... (Liuhto, 1999)Privatisation of the assets of the economy of russia especially aided in the accumulation of capital by the new bourgeoisie in the nation....
6 Pages (1500 words) Assignment

Reasons for Water Contamination in the Russian Federation

One of the most vivid examples of the neglect by the water resources is considered to be the area covering 2/3 of European russia - the Volga watershed, in which practically all water sources do not meet Russian standards.... The major threats facing the resources of potable water in russia can be referred to the water contamination that leads to the shortage of clear water....
10 Pages (2500 words) Research Paper

The Geopolitical Importance of Kaliningrad to Russia

The writer of the paper 'The Geopolitical Importance of Kaliningrad to russia' states that the region offers additional borders with European countries, which is significant for russia since it can interact with Germany with ease.... This allows russia to enjoy the Free Economic Zone and trade with European states.... The Kaliningrad region is a semi-autonomous region of russia at the westernmost part of the Russian Federation that resides within EU....
5 Pages (1250 words) Report

The Growth of Russia's Outsourcing Industry: Russian Economic Diversification

In December 1991 the USSR was divided into 15 independent republics and russia was a part of it.... Ever since the birth of russia as an independent republic the country had established a.... The paper "The Growth of russia's Outsourcing Industry: Russian Economic Diversification" is a great example of a literature review on macro and microeconomics.... The birth of russia is rather a testimony of communist violence in contemporary times....
11 Pages (2750 words) Literature review
sponsored ads
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.
Contact Us