PowerPoint Presentation

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 second-largest 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

Russian Federation200020052006200720082009201020112012201320142015201620172018201920202021202220232024202510.611.311.711.712United States200020052006200720082009201020112012201320142015201620172018201920202021202220232024202519.518.89999999999999918.518.518Russian Projection200020052006200720082009201020112012201320142015201620172018201920202021202220232024202512.4212.7413.0613.3813.714.0214.3414.6614.9815.315.6215.9416.26000000000000216.57999999999998816.89999999999999917.2217.54US Projection200020052006200720082009201020112012201320142015201620172018201920202021202220232024202517.6617.3216.97999999999998616.6416.315.9615.6215.2814.9414.614.2613.9213.5813.2412.912.5612.22

Year

Carbon Dioxide Emissions per Capita (tonnes)

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. .

"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. .

Tanas, Olga. "Putin Demands Proposals to Stem 'Alarming' Economic Slowdown."Bloomberg. N.p., 22 Apr. 2013. Web. 29 Apr. 2013.