The map of RussiaThe map of Russia

1985 1985 The Soviet Uni The Soviet Union on began to began to collapse into independent nations. After collapse into independent nations. After years of Soviet military buildup at the years of Soviet military buildup at the expense of domestic development, expense of domestic development, economic growth was at a standstill. economic growth was at a standstill. Failed attempts at reform and a Failed attempts at reform and a stagnant economy led to a general stagnant economy led to a general feeling of discontent, especially in the feeling of discontent, especially in the Baltic republics and Eastern EuropeBaltic republics and Eastern Europe..

1991 Soviet Union finally 1991 Soviet Union finally collapsed when Boris Yeltsincollapsed when Boris Yeltsin seized power in the aftermath of a seized power in the aftermath of a failed coupfailed coup that had attempted to that had attempted to topple reform-mindedtopple reform-minded Gorbachev.Gorbachev.

1998 The Russian financial crisis (also 1998 The Russian financial crisis (also called "Ruble crisis") hit Russiacalled "Ruble crisis") hit Russia on 17 August on 17 August 1998. It was exacerbated by the global 1998. It was exacerbated by the global recession of 1998, which started with the recession of 1998, which started with the Asian financial crisisAsian financial crisis in July 1997. Given the in July 1997. Given the ensuing decline in world commodity prices, ensuing decline in world commodity prices, countries heavily dependent on the export of countries heavily dependent on the export of raw materials, such as oil, were among those raw materials, such as oil, were among those most severely hit. The sharp decline in the most severely hit. The sharp decline in the price of oil had severe consequences for price of oil had severe consequences for Russia.Russia.

Goldman Sach invented the term BRIC Goldman Sach invented the term BRIC to describe the Brazilian, Russian, to describe the Brazilian, Russian, Indian and Chinese economies. Russian Indian and Chinese economies. Russian economy is growing very fast. Russia economy is growing very fast. Russia ended 2007 with 7% growth of GDP. ended 2007 with 7% growth of GDP. Russian economy is growing annually Russian economy is growing annually since the financial crisis of 1998. since the financial crisis of 1998.

Over the last six years, fixed capital Over the last six years, fixed capital investments have averaged real investments have averaged real gains greater than 10% per year and gains greater than 10% per year and personal incomes have achieved real personal incomes have achieved real gains more than 12% per year.gains more than 12% per year.

The federal budget has run surpluses The federal budget has run surpluses since 2001 and ended 2007 with a since 2001 and ended 2007 with a surplus of about 3% of GDP. surplus of about 3% of GDP. Foreign Foreign debt is approximately one-third of GDP. debt is approximately one-third of GDP. The state component of foreign debt has The state component of foreign debt has declined, but commercial debt to declined, but commercial debt to foreigners has increasingly risen.foreigners has increasingly risen.

These achievements have raised These achievements have raised business and investor confidence in business and investor confidence in Russia's economic prospects, with Russia's economic prospects, with foreign direct investment rising from foreign direct investment rising from $14.6 billion in 2005 to approximately $14.6 billion in 2005 to approximately $45 billion in 2007.$45 billion in 2007.

Inflation approached 12% Inflation approached 12% by year-end.by year-end.

What are the perspectives What are the perspectives of development?of development?

EExisting mix of market-oriented policies and xisting mix of market-oriented policies and state intervention will remain in place, with state intervention will remain in place, with state control over strategic sectors. state control over strategic sectors.

Tighter liquidity will dampen investment Tighter liquidity will dampen investment and consumption growth, with real GDP and consumption growth, with real GDP growth slowing to an annual average of 6.7% growth slowing to an annual average of 6.7% in 2008-09. in 2008-09.

High energy prices, strong capital inflows High energy prices, strong capital inflows and fiscal loosening will continue to fuel and fiscal loosening will continue to fuel inflationary pressures. inflationary pressures.

Strong imports and only moderate export Strong imports and only moderate export growth are forecast to reduce the current-growth are forecast to reduce the current-account surplus to around 3% of GDP by 2009.account surplus to around 3% of GDP by 2009.

According to the World Bank’s According to the World Bank’s “Governance Matters VI: Governance “Governance Matters VI: Governance Indicators for 1996-2006,” published in Indicators for 1996-2006,” published in July 2007, the level of responsibility for July 2007, the level of responsibility for the Russian government was rated 24 the Russian government was rated 24 out of 100, along with Mauritania and out of 100, along with Mauritania and Butan. Butan.

It is difficult to open your It is difficult to open your businessbusiness

The structure of the Russian economy The structure of the Russian economy remains skewed towards a few giant remains skewed towards a few giant companies, mostly forged from Soviet-era companies, mostly forged from Soviet-era assets. Small and medium-sized assets. Small and medium-sized businesses contribute less than 15% of businesses contribute less than 15% of GDP. The cost of opening a business is GDP. The cost of opening a business is higher than in most other countries. Only higher than in most other countries. Only 5% of firms have been created in the past 5% of firms have been created in the past ten years, according to the World Bankten years, according to the World Bank

Anti-government forces committed Anti-government forces committed numerous human rights abuses in the numerous human rights abuses in the internal conflict in Chechnya. They internal conflict in Chechnya. They continued killing and terrorizing local continued killing and terrorizing local heads of administration. heads of administration.

There were also positive There were also positive developments with regard to human developments with regard to human rights. rights.

Reforms initiated in previous years Reforms initiated in previous years continued to produce improvements continued to produce improvements in the criminal justice systemin the criminal justice system

PopulationPopulation

140,702,094 (July 2008 est.) 140,702,094 (July 2008 est.) Population of RussiaPopulation of Russia 127,288,419 (July 2008 est.) 127,288,419 (July 2008 est.) Population of JapanPopulation of Japan

My own experience!My own experience!

PioneersPioneers