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Explain using a production possibilities curve what happened to the Russian economy when the SOEs were sold off.

Explain using a production possibilities curve what happened to the Russian economy when the SOEs were sold off.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Explain using a production possibilities curve what happened to the Russian economy when the SOEs were sold off.
together and turn it in. Since 1989 Eastern European countries have moved from operating planned economies towards operating market economies, This rate of change has varied. Russia and Kazakhstan, for instance, sold off its state owned enterprises (SOES) and generally reduced government intervention at a quick rate. In contrast, Croatia, Poland and Slovenia removed price controls and subsidies and privatized relatively slowly. Some economists claim that the "shock therapy" swept away safety nets with state ownership. In a number of Russian towns, the SOES provided not only jobs but also healthcare, childcare and pensions, When the SOES were sold off unemployment rose and life expectancy fell. The lives of men were particularly badly affected with their lifespan falling even further than that of women. The question of how fast to make the transition from a planned to a market economy is now facing China. The country is becoming more market orientated with the role of the private sector increasing. Structural change is also occurring with the proportion of output and employment accounted for by the secondary and tertiary sectors increasing. The first decade of the twenty-first century witnessed a period of rapid economic growth in China boosted by high levels of investment and a low exchange rate which increased net exports. Although the country's economic growth slowed in the second decade of the twenty-first century it was still higher than most countries. The table below shows some key social and economic data on China, Poland, Romania, and Slovenia. Key Social and Economic Data Unemployment (% in 2014) Life Expectancy Annual Growth Country 2014 (% change in real GDP) 2014 Male Female 7.3 4.1 China 73.4 77.7 Poland 73.5 81.5 3.4 12.3 Russia 64.7 76.6 0.6 5.2 Slovenia 74.4 81.9 3.0 13.1
Transcribed Image Text:together and turn it in. Since 1989 Eastern European countries have moved from operating planned economies towards operating market economies, This rate of change has varied. Russia and Kazakhstan, for instance, sold off its state owned enterprises (SOES) and generally reduced government intervention at a quick rate. In contrast, Croatia, Poland and Slovenia removed price controls and subsidies and privatized relatively slowly. Some economists claim that the "shock therapy" swept away safety nets with state ownership. In a number of Russian towns, the SOES provided not only jobs but also healthcare, childcare and pensions, When the SOES were sold off unemployment rose and life expectancy fell. The lives of men were particularly badly affected with their lifespan falling even further than that of women. The question of how fast to make the transition from a planned to a market economy is now facing China. The country is becoming more market orientated with the role of the private sector increasing. Structural change is also occurring with the proportion of output and employment accounted for by the secondary and tertiary sectors increasing. The first decade of the twenty-first century witnessed a period of rapid economic growth in China boosted by high levels of investment and a low exchange rate which increased net exports. Although the country's economic growth slowed in the second decade of the twenty-first century it was still higher than most countries. The table below shows some key social and economic data on China, Poland, Romania, and Slovenia. Key Social and Economic Data Unemployment (% in 2014) Life Expectancy Annual Growth Country 2014 (% change in real GDP) 2014 Male Female 7.3 4.1 China 73.4 77.7 Poland 73.5 81.5 3.4 12.3 Russia 64.7 76.6 0.6 5.2 Slovenia 74.4 81.9 3.0 13.1
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