Tuesday, January 8, 2008

Week 7, post b

In this section Alan Greenspan talks about Russia in the recent years. He talks about Russia’s recent success but also Russia’s failures. In 1999 Vladimir Putin became the president of Russia. Putin has worked very hard to make Russia a economic power. Under Putin Russia has seen many reforms to its economy and government that have helped the country run smother. In his first two years he created tax reforms, deregulation, and privatization of land. Russia’s main export is natural gas and oil. This export in Russia is regulated by the government and with natural gas and oil Russia can make huge profits. However this strategy could become risky when Russia’s gas and oil runs out it will need to find other ways to compete with the global market. There have been some failures in Russia recent years in 1998 Russia’s economy collapsed into bankruptcy. However, Russia has recovered beyond expectations. Russia’s unemployment rate in 1998 was 13% in 2007 it was at 7%. In July 1999 Russia’s inflation was at 127% it is now in single digits. Russia has seen great economic despair while under communism. When the iron curtain was lifted the world got to see the economic despair. Since the collapse of the USSR Russia is making a come back. Whether Russia becomes an economic power or not Russia has come a long way.

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