RUSSIA
PRESENTED TO: PROF. ABHA RISHI BY: ABHAY AGRAWAL (975) ANNU GROVER SHIKHA SINGHAL TAARIKA GUPTA VARUN SINGHAL
Russia
ABOUT THE COUNTRY
• • • • • AREA OF THE COUNTRY:17,075,400 square km POPULATION:14,07,02,094 (2008) CURRENCY:RUBLE (RUB) GOVERNMENT TYPE: FEDERATION INDEPENDENCE DAY : 24TH AUGUST 1991
POLITICAL
• Russian federation type of government • Constitution: December 12, 1993.
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POLITICAL
• Branches: Executive--president, prime minister (chairman of the government). • Legislative--Federal Assembly (Federation Council, State Duma). • Judicial--Constitutional Court, Supreme Court, Supreme Court of Arbitration, Office of Procurator General. • In the political system established by the 1993 constitution, the president wields considerable executive power. There is no vice president, and the legislative branch is far weaker than the executive. The bicameral legislature consists of the lower house (State Duma) and the upper house (the Federation Council). The president nominates the highest state officials, including the prime minister, who must be approved by the Duma. The president can pass decrees without consent from the Duma. He also is head of the armed forces and of the Security Council.
Political Factors
• The politics of Russia ( the Russian Federation) take place in a framework of a federal presidential republic. According to the Constitution of Russia, the President of Russia is head of state, and of a multi-party system with executive power exercised by the government, headed by the Prime Minister, who is appointed by the President with the parliament's approval. Legislative power is vested in the two chambers of the Federal Assembly of the Russian Federation, while the President and the government issue numerous legally binding by-laws
Economic Factors
• Russia’s decade-long economic expansion has accelerated in 2007-08 – despite • worsening global conditions. But with the economy overheating, adjusting the • macroeconomic policy mix will be necessary to reduce inflation. The new government • will also need to reinvigorate remaining structural reforms in order to • boost productivity and ensure sustained, high rates of economic growth
GDP and Industrial Production The structure of real GDP growth has shifted towards non-tradeable sectors, partly reflecting booming domestic demand and appreciating currency. Investment Booming domestic demand, particularly investment, has helped propel shortterm growth but the overall investment levels remain moderate. High oil and gas prices and profits in the resource sector and appreciating ruble have helped bring FDI inflows to record levels, mainly concentrated in the extraction industries.
ECONOMIC FACTORS
• GDP:1.34 trillion • GDP growth: 8.1% (2007) • PPP:$2.088 trillion(2007) • GDP (per capita) :$14700 (2007) • GDP contribution sector wise Agriculture-4.7% Industry-39.1% Services-56.2% Labour force-74.1 million • INFLATION RATE:11.9% annual avg; 12 % at year end 2007 • UNEMPLOYMENT RATE:6.2 % • POPULATION BELOW POVERTY LINE:15.8%
Incomes and Employment Despite high inflation, robust economic growth has been accompanied by double digit increases in real incomes and wages of the population, a trend that continues in 2008
Balance of Payments and Capital Inflows record-high oil prices and robustcapital inflows have contributed to continued strength in the balance of payments and a further build up of reserves during 2007. Financial Sector Vulnerabilities2 Underpinned by robust economic expansion described above, the Russian banking sector has also enjoyed rapid growth and profitability, partly on the heels of large capital inflows and foreign borrowingWhile the Russian banking system has so far weathered the global financial turbulence, it faces credit, liquidity, and market risks that require monitoring
To reduce inflation, adjustment in the macroeconomic policy mix is needed
On the structural reform front, major challenges remain to improve business environment and investment climate, reduce barriers to small and medium size businesses, entrepreneurship and innovation, close the infrastructure gaps and deepen the open trading environment.
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