Policy Proposal for Economic Reform in Russia Essay

As stated earlier, Russia’s economy is largely based on oil. Further, throughout Russia’s existence, its political institutions have strongly remained stable do to their performance legitimacy. Therefore, the rise of oil and therefore competitive authoritarianism are not mutually exclusive. Since Putin’s election, economic growth has averaged 6.7%, however, much of this growth is directly due to rising oil prices since 1998 that have topped over 100 dollars a barrel. Rising oil prices has allowed Russia to eradicate foreign debt, establish massive reserves of hard currency, and create budget surpluses. This has in turn allowed Putin to accumulate massive amounts of wealth as well as improving his performance legitimacy. Arguably, this is a false performance legitimacy. To many in Russia, this is the best the economy has ever been, and it has allowed for Putin to easily consolidate power. Yet, with oil on the decline, Russia has effectively created an economy that can not last into the near future, and only time will tell how far they will end up

One can easily admit that the Party had failed to properly economically plan the needs of each state. The Soviet Union economy was complex and massive, it became an impossible task for the state planners to manage, as they did not want to grant and create more managerial levels that would proceed to the local level resulting in failed timely attempts to the constant changes the economy was going through. Since the Soviet economy was based on state planning, it failed in encouraging innovation and motivating productivity. Managers would also alter numbers in order to produce the quotas that they were required to meet. The growth of the Soviet economy had been in a constant decline since the 1950’s and this progressed to the 1980’s. This was a clear sign that the Soviet economy was in need of a complete economic overhaul. Gorbachev succeeded power in March, 1985 and became General Secretary of the Central Committee of the Communist party of the Soviet Union. His main goal was to revive the Soviet economy, and he strongly believed that success was tied to loosening the governments control and creating a system that included less government intervention and more freedom to allow private initiatives. This new market economy would allow for private enterprise, which what Gorbachev believed would create more innovation. For the first time since 1920’s, individuals were able to own and create businesses.

The democratization, economic liberalization, and eventual collapse of the Soviet Union is commonly attributed to Mikhail Gorbachev's Perestroika and Glasnost reforms during the period of 1985-1991. This purpose of these reforms is still a trenchant question as the countries of the old Soviet Union, particular Russia, are being pressured to further liberalize their economies.

Russia’s economy is very complex and also very terrible at the same time. Many other economy’s are also like this but Russia’s is a very interesting thing to learn about. Russia’s economy has many things wrong with it that in the long run could probably affected it in a negative way. But it also has many positive things about it.The negatives and the positives are, in my opinion, are equal in Russia economy.

A command economy is one in which the co-ordination of economic activity is controlled and undertaken through administrative means rather than through the market mechanism (Ericson, 2005). Many aspects of the Soviet economy fit this description such as its organisational structure, the methods by which aims and directives were carried out and its lack of a use of pricing within its financial mechanisms, thus it can be argued that the term command economy is an accurate description. However there are another of other aspects to consider such as the use of bargaining to develop a second ‘economy of agreement’ and the

It could be argued that the collapse of the Eastern bloc was inevitable due to the moral bankruptcy of communism. The communist ideology stresses the equality and necessity of protecting the working class. Yet, the corruption of the communist party was increasingly apparent. Thus, it could be argued that the inherent failures of the communist system itself contributed to collapse of communism in Eastern Europe. Moreover, this moral bankruptcy resulted in an alienated population. The lack of competition in industry and lack of incentives resulted in low productivity which contributed to the worsening of the Soviets’ economic system. Additionally, due to the quotas enforced by the government, it was not uncommon for managers to lie about the quantity of their production. The fact that there was little

The many long-term internal causes of the collapse of the Soviet Union centralized around weaknesses in their economy. They had an inflexible central planning system, the inability to modernize, and the inefficiency in their agriculture production. Sometime around the 1970's the computer and automation revolution had emerged. This revolution took over the West, but practically missed the Soviet Union, except in the military sector (Baylis & Smith, 2001.) Gorbachev's goal in economic restructuring was to create a separation between the economic and the political. The major changes began with the legalization of private farming and business co-operatives, and the allowing of foreign company ownership over Soviet enterprises (Baylis &Smith, 2001) All of Gorbachev's ideas on economic restructuring backfired on him since the price levels were inconsistent, and a sense of social confusion about the future of their state was created.

The Russian state has been characterized by its strong heritage of powerful, autocratic leadership. This domination by small ruling elite has been seen throughout Russia's history and has transferred into its economic history. Throughout the Russian czarist period, to the legacy of seventy years of communism; Russia has been a country marked by strong central state planning, a strict command economy and an overall weak market infrastructure (Goldman, 2003). Self-interest, manipulation and corruption have all been present in the Russian economy, and have greatly helped the few as opposed to the many. To this day, Russia still struggles with creating a competitive and fair market.

The Effectiveness of Wittes Economic Reform in Russia When Sergei Witte became minister of finance in Russia in 1892 he recognised that the economy had to be modernised if Russia was to become a world power on a par with the west. The Industrial Revolution that had taken place in the west had led to its massive economic growth and an increase in power and Empire building. Being able to buy cheap, raw materials like oil and coal from Russia fuelled part of the west’s industrial revolution.

Communism in the USSR was doomed from the onset. Communism was condemned due to lack of support from other nations, condemned due to corruption within its leadership, condemned due to the moral weakness of humanity, making what is perfect on paper, ineffective in the real world. The end of this system was very violent. It left one of the two most powerful nations in the world fearful of what was to come. <br><br>Communism can either be called a concept or system of society. In a society that follows the communist beliefs groups own the major resources and means of production, rather than a certain individual. In theory, Communism is to provide equal work, and benefits to all in a specific society. Communism is derived from many ancient

Under communism the economic decisions and property were national and publicly owned. Over the past 15 years of the transition to capitalism almost all basic

Oligarchy as it is known in Aristotle’s politics; is a government run by a small group of people, ‘elites’. However, the oligarchy which this essay addresses is currently referred to in Russia as “a very wealthy and politically well-connected businessman...one who is the main owner of a conglomerate of enterprises and has close ties with the president” (Aslund and Dabrowski, 2007; 144). In the 1990s Russia’s economic reforms are said to have created the rise of a small group of oligarchs who gained an overwhelming amount of power and control. By 1997, this small group of previously unknown businessmen and bankers, often with gangster ties, had acquired control of many of the key parts of the Russian economy. Why did they emerge? It is argued by David Satter that three processes facilitated the emergence of the oligarchs. The first was hyperinflation and the social, economic and political consequences. The second was the process of privatisation, and finally the third was criminalisation (Satter, 2003). However, were these powerful oligarchs just a phase during the transition from Soviet to Post-Soviet Russia? Even with Putin’s efforts and declaration to distance the oligarchs from politics and power, and start a war against them exemplified by the Khodorkovsky affair, are oligarchs still significantly powerful in contemporary Russia? What is the role they play in Russia? It seems that the power of those original oligarchs of the 1990s has decreased or been concealed in

Russia, officially known as the Russian Federation, has a total area of 17,098,242 sq km (“The World Factbook”) and is the largest country in the world. It is about 1.8 times the size of the United States (“The World Factbook”). Most of Russia is either large stretches of plains or areas with a lot of forests and mountains, with the exception of the Siberian Tundra. It is difficult to perfectly describe Russia’s climate because of it’s large size. However, in general, the country only has two seasons, summer and winter. In the summer they have very warm, continental weather and they have very harsh winters with a lot of snow. Russia is plentiful in natural resources. They are particularly

The period 1995 to mid-1997 was boom time for Russia’s financial markets. The value of the Russian bonds and stocks soared, with the participation of foreigners in these asset markets increasing rapidly. International investors’ optimism about the country’s future was lifted by stabilization policy that followed the advice of Western institutions.

Russia, known by most as the Russian Federation, is a federal state in Eurasia. Russia is the largest country in the world at 17,075,200 square kilometres by surface area, covering more than one eighth of Earth 's inhabited land, and the ninth most populous, with over 146.6 million people as of end of March 2016. The European western part of the country is much more populated and urbanised than the East, with almost eight-tenths of the population living within the European region of Russia. Russia 's capital, Moscow is one of the largest cities in Europe and the world. Its ohter major urban cities include Saint Petersburg, Novosibirsk, Yekaterinburg, Nizhny Novgorod and Samara.