...was stuck in the mud. At a young age, Peter the Great fell in love with the militarism and Navy, the Westerners had advertised for the world. Thus came the idea of Westernization. Economically and Politically, Peter the Great offered many a great reforms that were successful. Such as, traveling to the West and applying what he has learned to his own economy. Though he brought back new reforms that changed Russia for the good, he tried to introduce social and cultural reforms that did not get the kick start that he had hope for. The idea of changing Russia’s...
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...the political change. Under the communist system, the transportation and communication networks were always in lingering. And also, at some areas, particularly causeway, were discouragingly polluted and the banking system was very narrow. Secondly, it’s the economic theory, the change was for government to consider the ways to set economic purpose and use their strength to direct the economy to try achieving those objectives. The government also followed the trend of selling off business enterprises to private firms in the anticipation that competition and the profit motive will increase their success achieved in the performance. Lastly, it’s the globalization. The increased of international trade and investment have decreased the gap of cultures, technologies and economic decision making. As the globalization carried on, the economies had also become more very much alike. Body The intention of this essay is test the benefits and failures of Russia's transition. The change of Russia shifting from planned to market system has brought many benefits. The graph below shows that the Russia’s GDP has increased throughoutly since 2000. Source : www.tradingeconomics.com (world bank) On the other hand, the productivity was also increasing. It is also a major factor for economic growth. There were evidence to it since middle of 19th century. The economic growth was mushrooming in the 20th century. It was because of the substracted inputs of labor, energy, materials, and...
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...Introduction BRIC is used in economics to refer to the combination of Brazil, Russia, India, and China which make up over 42% of the world's population. These nations are going to play a major role in the future of global economy. BRIC or BRICs are terms used in economics to refer to the combination of Brazil, Russia, India, and China. General consensus is that the term was first prominently used in a thesis of the Goldman Sachs investment bank. The main point of this 2003 paper was to argue that the economies of the BRICs are rapidly developing and by the year 2050 will eclipse most of the current richest countries of the world. Goldman Sachs argues that the economic potential of Brazil, Russia, India, and China is such that they may become among the four most dominant economies by the year 2050. The thesis was proposed by Jim O'Neill, global economist at Goldman Sachs. These countries are forecast to encompass over thirty-nine percent of the world's population. Goldman Sachs predicts China and India, respectively, to be the dominant global suppliers of manufactured goods and services while Brazil and Russia would become similarly dominant as suppliers of raw materials. Cooperation is thus hypothesized to be a logical next step among the BRICs because Brazil and Russia together form the logical commodity suppliers to India and China. Thus, the BRICs have the potential to form a powerful economic bloc to the exclusion of the modern-day G8 status. Brazil is dominant in...
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...TERM AND WHY I AM INTERESTED IN IT While studying Russia for the GBCA, it has become increasingly obvious that everyone generally feels that Russia’s main (and some may say only) contribution to global trade is in raw materials (Lally, 2012). I am curious to learn more about raw materials and what makes Russia such a heavy player in this arena. EXPLANATION OF THE KEY TERM Raw materials are “inventory items that are used in the manufacturer’s conversion process to produce components, subassemblies, or finished products” (Satterlee, 2009). These inventory items are “unfinished goods” such as “a steelmaker uses iron ore and other metals in producing steel” (Raw material, 2006). When determining whether to conduct business in a particular region, the availability and relative proximity to raw materials should be a determining factor in the decision making process. While it can be beneficial for emerging businesses when the cost of raw materials is low in a particular region, it can become financially problematic when the vast majority of a nation’s economic system is wrapped up in the production and cost of raw materials. MAJOR ARTICLE SUMMARY This article is a general overview of the Russian economy as of December 2008 that reflects on the causes for a “slowdown” the preceding October. Even though there was a “slowdown” in the economy, growth was still taking place as evidenced in the GDP. For October of that year, GDP growth was 5.9% relative to the 7.7% seen in January-September...
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...of the shift in global economic power away from the developed G7 economies towards the developing world. G7 countries are existing nations with well-developed economies. It is estimated that the BRICS economies will overtake G7 economies by 2050. Although there is argument of whether South Africa should be included in the BRIC countries due to its population of 50 million, it was still included. China and India, predictively, will become the dominant global suppliers of manufactured goods and services, while Brazil and Russia will become similarly dominant as suppliers of raw materials. India is the second largest country with a population of over 1.2 billion people. The country thrives off of small businesses headed by poor families trying to make a living and to support their families. In the past decade however, India has made it clear they want to expand their horizons. This idea is not favored with everyone due to the fear of forgetting India's roots and traditions to the modern way (or Western way). It is also causing a stir about the decline in profit to small businesses. The value of Indian economic output in 2012 will be $1.95 trillion and $2.12 trillion in 2013. That makes it one of the 10 largest economies in the world. India has already overtaken several rich countries such as Canada as far as the size of its economy goes. But faster economic growth is important as well as creating a robust economy that offers many opportunities to 1.2 billion Indians. The way to...
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...As the CEO of a company that has to choose between making a $100 million investment in either Russia or Czech Republic the risk considerations have become critically important in choosing the best option. The risk considerations include evaluation of each nation’s political, economic and legal systems along with the cultural practices, education and skill levels and each countries stage of economic development. The political systems of a country shapes both the economic and legal systems (Hill, 45). These systems are interconnected and play a vital role in making a decision of which country to make an investment in. In evaluating the risks of making the investment in Russia, the most widely discussed risk that is found is the corruption in the country; this remains a major barrier success for businesses in the nation. There is a complex business environment in Russia along with known issues involving bribery. The corruption in the nation leads to a number of problems including non-transparent and inconsistent application of laws and regulations with the weak enforcement of laws and court decisions (Business Anti-Corruption Portal). This isn’t the only area where corruption is a problem in Russia, there is corruption in the area of licensing and permits with multiple inspections and red tape. Intentional and lengthy delays in the procedures for starting a business, getting required permits and licensing are additional risks along with the corruption. It does seem as though the...
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...development in Russia between 1881-1903. Witte, as Finance Minister, was in a unique position to improve the great power status of Russia by improving the one thing that was holding the country back; it’s economy. There were several strands to his economic development of Russia such as establishing better communication between east and west by building the Trans-Siberian railway, using state intervention to increase the production of primary industries such as iron, coal and oil and opening up the vast potential of Siberia. However, to a lesser extent it can be argued that Witte’s policies had little effect on Russia, as it remained a largely peasant society with the serfs being tied to their land through crippling debts due to redemption payments. Also, the industrialisation of Russia led to social unrest which may in turn have led Russia to regress. Finally, other developments such as Russification and the repressive policies of Tsar Alexander III, again may have negated any positive change that Witte’s reforms brought. Some historians argue that the policies of Witte were the most important in the development of Russia between 1881-1903. This is a compelling argument because unlike the previous finance ministers, he tackled the issues that were really holding the economy back, namely the lack of reliable communication between west and east Russia and the lack of a middle class to invest in, and drive forward, industry. The cornerstone of Witte’s economic reforms was the...
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...ZERRATE 11TH FEB. 2015 1 Foreign investment can be particularly challenging. In order get it right, the use of tools and evaluations is critical. In this document, based on the CAGE framework, we analyze distances between Russia and Kenya, and assess how they impact business establishment and operations in the latter. One of the most important things to take into account is the culture. We noticed that the two countries have very distinct and diverse cultural dimensions. They do not have a common language i.e. Russia has Russian as it official language while Kenya has English and Swahili, or have any shared ethnicity despite Russia having 185 and Kenya 42 ethnic groups. Religious disparities are also evident in these two economies. The Russians are largely unbelievers with the Russian Orthodox being the dominant religion whereas Kenyans are largely Christians. Despite these differences, the Muslim population in both countries is significantly represented but their marginalization makes them insignificant on an investment front. Finally, the social norms and values in both countries are quite similar, with the similar concepts of family, societal upbringing and gender roles. When evaluating both countries at the administrative level we encounter that they do not share a common trading bloc, but they separately participate in distinct blocks like EAC, COMESA and AGOA (Kenya) and Eurasian Federation (Russia). The currency in both countries is different (Kenyan...
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...countries, it would be CIRB which is China, India, Russia and Brazil. The BRIC are both the fastest growing and largest emerging markets economies. These four countries encompass more than quarter of the world’s land area and in 2009 accounted for more than 40% of world’s population, 40% of the world’s foreign exchange reserves and 25% of world’s GDP. The states, which were earlier, accepted to consider as developing countries of Third world, promptly become economic giants of the new world. BRIC: Brazil, Russia, India and China – four markets everyone with the unique features, but thus unites them the potential generated by changes in political systems of these countries. As a result of these changes there was a consumer demand, which is formed by 43% of the population of the whole world. In roughly developing countries of BRIC there are five of the ten largest cities of planet where concentrated the huge amount of capital and millions of consumers who are aspiring up on social and economic ladder. The term BRIC was included into a business lexicon in 2003 after the economist of Goldman Sachs investment bank Jim O'Neill described future economic picture of the world. In his opinion, by 2050 the economic capacity of these four countries will allow them to become dominating economies, and to surpass in scales not only economy of the USA, but also economy of all of the countries of Western Europe taken together. However, on forecasts of experts of Goldman Sachs, it can happen and earlier...
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...The Brics’ role in the global economy Paulo Roberto de Almeida In: Cebri-Icone-British Embassy in Brasília: Trade and International Negotiations for Journalists (Rio de Janeiro, 2009, p. 146-154; ISBN: 978-85-89534-05-5). ∗ 1. Where do they come from and what are the Brics? In demographic terms, BRIC holds the world’s two most populated countries and another two with considerable populations. China alone holds a fifth of the world’s population, and is closely followed by India (17.5%) and, by a larger gap Brazil (2.9%) and Russia (2.2%). Despite their large territories – Russia’s 17 million km2, India’s 3.2 million km2, China’s 9.3 million km2 and Brazil’s 8.5 million km2 –, the Brics differ from each other in terms of natural resources, level of industrialization and impact on the global economy. It is important to point out these differences, as definition as a bloc might lead to wrongful assumptions about the four countries’ individual current and future roles in the global economy. In order to be accurate about each country’s actual weight in the world, we should perhaps change the acronym to CIRB (but without the glamour of the name). Let us begin with China, which is the most continuous civilization in history – not strictly in terms of political linearity but rather in terms of cultural continuity. The country has a tragic contemporary history, marked by economic decadence, political instability, military humiliation and social regression caused by a deep degradation...
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......................................................................................(vi) CHAPTER I. INVESTMENT AND THEIR PLACE IN ECONOMIC SYSTEM §1 §2 Definition of investments and their classification ................................................4 Foreign direct investments as the catalyst of economic growth (on an example of the various countries) ..............................................................7 §3 The international investment activity and her institutes .....................................16 CHAPTER II. INVESTMENT CLIMATE IN KAZAKHSTAN §1 §2 §3 §4 Appeal of economy of Kazakhstan to foreign investors .....................................22 Fixed capital investment in Kazakhstan by region .............................................25 Investment rating of Kazakhstan .........................................................................31 Investments in the Kazakh Economy in 2001 (an example) ...............................34 CHAPTER III. ROLE OF THE STATE IN INVESTMENT ACTIVITY §1 §2 §3 §4 The state investment policy...
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...Insight Report The Global Competitiveness Report 2014–2015 Klaus Schwab, World Economic Forum Insight Report The Global Competitiveness Report 2014–2015 Full Data Edition Professor Klaus Schwab World Economic Forum Editor Professor Xavier Sala-i-Martín Columbia University Chief Advisor of The Global Competitiveness and Benchmarking Network © 2014 World Economic Forum World Economic Forum Geneva The Global Competitiveness Report 2014–2015: Full Data Edition is published by the World Economic Forum within the framework of The Global Competitiveness and Benchmarking Network. Copyright © 2014 by the World Economic Forum Professor Klaus Schwab Executive Chairman All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, or otherwise without the prior permission of the World Economic Forum. Professor Xavier Sala-i-Martín Chief Advisor of The Global Competitiveness and Benchmarking Network Espen Barth Eide Managing Director and Member of the Managing Board ISBN-13: 978-92-95044-98-2 ISBN-10: 92-95044-98-3 Jennifer Blanke Chief Economist This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. THE GLOBAL COMPETITIVENESS AND BENCHMARKING NETWORK Margareta Drzeniek Hanouz, Head of the Global Competitiveness and Benchmarking Network and...
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...Economic Conditions- In the early 90’s Russia’s economy underwent a ride through unfamiliar waters. At first it was the collapse of the centrally planned economy that was a stamp of the state-controlled economy and then it was the stand-in by an economy working on the basis of market forces. It was difficult to implement financial reform to raise government revenue and there was a further crisis from dependency on short-term borrowing to help finance budget deficits in 1998. However, the Russians were able to overcome the financial crisis in 1998 and achieve 9 years of growth while implementing economic reform. From 2001-2008, Russia had a budget surplus which stemmed from the stabilization of inflation and exchange rates due to well executed fiscal policy. In 2008 Russia was hit with another economic crisis. This time they were much better prepared. Farms were able to adjust quickly to the new economic conditions, acknowledged the profitable channels to sell their products, restructured the production according to the requirements of the market, and effectively created the processing of agricultural product, selling them through a network of stores in Russia, and trusted wholesale agents at better prices Political- In Russia the powers between the central, regional, and local authorities are still growing. Its federation is made up of 83 administrative units, in addition to Moscow and St Petersburg. In 2000 the president at the time Mr. Putin combined the regions into...
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...Jake Cowley L6 IB History Assess the successes and failures of Stalin’s Economic Policy After Stalin had become the sole leader of the Soviet Union in 1929, he saw the need to introduce two new major economic policies, collectivization, and a series of five year plans. Both of these new economic plans were designed to boost Russia’s agriculture and industrialization within a short period of time, to catch up with the world leading powers, which were essentially Britain and the United States at the time. Stalin strongly believed that it was necessary to go to any lengths, which would soon include killing off thousands of peasants, to reverse the backwards economy of the time, to eventually overtake that of other countries. As the economy of Russia at the time, was in quite a terrible state. He believed he could do this by heavily focusing on agriculture and industry, to prepare Russia for a new age. Stalin’s new economic policies would soon prove to be a mix of successes and failures for both the economy and the people of Russia, each to different extents. Stalin’s first economic policy of the 1930’s was collectivization. This was the joining of private plots which had been previously divided amongst the peasants by the Tsar, in order to increase the amount of output production altogether. Although this might have seemed like a good idea to Stalin at the time, this economic policy proved to have more failures than successes. The collectivization of grain meant that...
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...MUSCAT— Since the Royal Decree of His Majesty the Sultan to establish Oman’s full-fledged embassy in Bangladesh last September, the two countries have seen a flurry of activity as they have started gearing up to take their bilateral co-operation to higher heights. The Omani Embassy has already started working on a limited scale in its new premises in Dhaka from the hitherto single room in Qatar Embassy. Oman Oil Company is keen to invest in Bangladesh’s fast growing oil and gas sector. To this effect, it has submitted a proposal to its counterpart in Bangladesh, namely, Petrobangla, for joint venture deals in the oil and gas sector, said Mohammad Khorshed Khastagir, Counsellor and Charge d'Affaires, Bangladesh Embassy. Many multinational companies have already invested in gas exploration in Bangladesh. US based Chevron Energy is currently producing around 1150mmcfd gas, which is roughly half of Bangladesh's daily production. Energy prices in Bangladesh are most competitive in the region. Transportation on green compressed natural gas is less than 20 per cent of the diesel price. Oman’s Sadara Development and Investment LLC is exploring ways to source Bangladeshi expertise and investment for shrimp farming and aquaculture in Oman. Studio Ecotecture Limited, an engineering consulting firm from Bangladesh, recently signed a MoU with Al Badi Trading and Cont Est. of Oman for JV in engineering, construction, infrastructure, and real estate projects in Oman. Muscat Thread Mills...
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