Former communist nation

Controlled economy
Inefficient

Russian Bank
Many collapsed or took large loses

Economic Reforms
Most industry privatized (Not energy or
defense)
Some property rights but fraud still
rampant

 Nominal dollar GDP $1.86 Trillion in

2011
Low unemployment 5.7%
HDI=.788 (55th in world)
Fueled by rising commodity prices and
cheap foreign credit
Oil Prices rose to $147.27 per barrel in 2008
Russian banks acquired foreign debt
amounting $500 billion

 Industries
7.9% agriculture
27.4% Industry
64.7% Service

Slowdown
The ruble has lost about 2.6 percent against the dollar
in the past month
The Micex Index sank as much as 1 percent and closed
down 0.1 percent at 1,336.84 in Moscow,
High Interest Rates
Inflation slowed to 7 percent in March from 7.3 percent
Large Capital Outflows

 4.309 doctors per thousand people

9.66 hospital beds per thousand people
Life Expectancy: 69.85 years
male:64.04 years
female:76.02 years
World Average: 67.88

Population Growth Rate: -0.02%

Eighth Largest Labor Force(75.6 million)
12.7% of population below poverty line

 Low Productivity
4.1% of GDP (2008)
country comparison to the
world:110
Rising Middle Class
Literacy: 99.6%
Immigration of the educated

 Corporate profit tax in Russia is 20 percent

In most Western European countries, it
is
more than 30 percent.
Income tax for individuals in Russia is 13
percent
45 percent in Germany
Additional Documents
Mostly spent on military

Russia faces many barriers to

development including a corrupt
government, broken infrastructure,
and a narrow variety of exports.
Becasue of its current tax situation,
Russia should increase its taxes in
order to update its infrastructure,
reeducate its work force and improve
enviromental regulation enforcement.

 Accelerating modernization
Improve Innovation
introduce modern new technologies, to
upgrade international standards, particularly
transparency, and gender issues

Fight Corruption
Improve Innfrastrcuture
Diversify Exports

 Major Exports
World's leading oil producer
Holds the world's largest natural gas reserves, the secondlargest coal reserves
top exporter of metals such as steel and primary aluminum
Vulnerable to boom-bust cycles due to volatile swings in
global prices

Joined WTO in 2012 reducing trade barriers

Could motivate workforce to be more productive due to
increase competition from imports

Foreign Investment 19.7% of GDP (101 in world)

 Road density:6 km per 100 sq. km of land

U.S.: 67 Cambodia(2009): 22

Major cities not connected

The distance between Moscow and
Krasnoyarsk is over 4,000 miles, but Russia
plans to build only about 600 miles of
highway this year.

Financed through outside investment

For every $1 billion dollars invested in
infrastructure, 1,500 jobs are created

 Banking/Financial Institutions
Difficult for non developed regions

Power plants were made during the

Soviet-era, which are now decaying
Failure of the Sayano-Shushenskaya
dam

 Populist President Vladimir Putin

Corruption
Media
Bribes
Elections
Fraud
Narrow rules for candidacy

 In 2007, Russia had two sites in the

top ten worst polluted areas.
Most pollution caused by industry
Blowing carcinogens into air
Chemical waste in Yenisei River
Lake Baikal

Environmental laws are present, but

not enforced

Carbon Dioxide Emissions over Time

25

20

15
Russian Federation
United States
Russian Projection

Carbon Dioxide Emissions per Capita (tonnes)

US Projection

10

Year

Low Taxes
Low Unemloyment
High Inflation
Barriers
Corruption
Infrastructure
Enviroment

Solution: Increase taxes

 Anderson, Norman F. "USRBC White Paper." U.S.-Russia Business

Council. CA/LA Infrastructure LLC, 2011. Web. 20 May 2013.
<https://www.usrbc.org/pics/File/Russia_Infrastructure_WhitePaper
_Eng.pdf>.
"CIA." CIA Factbook . N.p., n.d. Web. 12 Apr. 2013
"Data | The World Bank." Data | The World Bank. N.p., n.d. Web. 12
Apr. 2013
Kramer, Andrew E. "Decaying Soviet Infrastructure Shows Its Era."
NYTimes.com. New York Times, 20 Aug. 2009. Web. 14 May 2013.
Schwartz, Andrew. "Economic Change in Russia." Center for Strategic
and International Studies. N.p., 08 July 2009. Web. 29 Apr. 2013.
"Strategy for the Russian Federation." European Bank for
Reconstruction and Development. N.p., 18 Dec. 2012. Web. 20 May
2013. <http://www.ebrd.com/downloads/country/strategy/russia.pdf>.
Tanas, Olga. "Putin Demands Proposals to Stem 'Alarming' Economic
Slowdown."Bloomberg. N.p., 22 Apr. 2013. Web. 29 Apr. 2013.