Russian Economy Before And After Vladimir Putin



The country has implemented multifaceted foreign policy as is also recognized as the successor state of the former USSR. Till 2009, the country maintained diplomatic relations with around 190 countries as well as with around 140 embassies. Since the fall of the Soviet Union, Russia has emerged as one of the powerhouse in the scenario of global trade. The country adopted a democratic form of government and the regime of free market. The country got its inclusion in BRIC constitution along with India, Brazil and China. The BRIC group leads the developing world in terms of growth and economic transformation. To talk about the market access, most of the goods can be freely imported to the country. The country focused intensely on joining the World Trade Organization after the presidential election of 1999. The accession of the country to the WTO is now complete. Significant amount of progress was made in the last year which paved the way for the accession. The country will benefit from the accession in the long run on several fronts, one of the most important being the discriminatory measures held by the 30 countries against the exports of steel of Russia. It is also anticipated that the accession to the WTO drives in more foreign investments. The country follows the system of harmonized Customs. The Russian history faced difficult times in the first 20 years of the last century. The civil war ruined the country, the people starved because of the economic embargo of the governments. The government was not able to gather pace on the imports as well as exports which was the need of the time. To deal with the situation, the Russian government decided to send a trade mission to UK. The Economy of Russia The economy of the country is ranked ninth in the world in terms of nominal value while the economy is ranked sixth in terms of purchasing power parity. The economy has transformed to a market based economy from a centrally planned one after the collapse of the Soviet Union. The reforms of the 1990 privatized many sectors while the sectors like energy and defence being the exceptions. Macroeconomic stabilization as well as restructuring of the economy can be regarded as the indicators for transition from centrally planned to an economy that is based on the market. Macroeconomic stabilization entails implementation of monetary and fiscal policies. The aim of implementation is promotion of economic growth that will pave the path for stable prices and exchange rates. Restructuring of the economy require establishment of entities like commercial or institutional. These entities will allow the operation of the economy in an efficient fashion. One of the footsteps to achieve this goal is to open up the domestic market to foreign trade. The economy thus gets linked with the rest of the world. The bid of the country to join WTO faced a hurdle on the issues of low rate of domestic energy consumption and the closeness of the market for the foreign competitors. The member countries of WTO expressed the view that the country should charge equal prices for oil and gas even domestically. The accession process was boosted as Russia worked out the disagreements on prices of energy as well as agricultural subsidies with European Union. In the year 2003, WTO estimated that the country is positioned 17th in the rank of largest exporters of the world. The minister of trade announced that the country has the potential to gain thousands of dollars once it has access to the regime and the world markets. As the pressure to resort to

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