The Economic and Political Systems of Russi. Fall of the Soviet Union

The Economic and Political Systems of Russia
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The Economic and Political Systems of Russia
The fall of the Soviet Union led to the establishment of Russia as a sovereign nation in 1991. This was coupled with the introduction of democracy and a market economy, making the country a player in the globalization process. Over the years, Russia had experienced a steady increase in trade and cultural exchange, which have facilitated improved connection with the rest of the world. Until recently, the Russian economy had been one of the fastest-growing economies in the world, which led to improved standards of living for the citizens in the country. These developments also contributed to increased economic stability, making Russia a world powerhouse that challenged the United States and developed European nations (Cooper, 2009).
The Russian economy has undergone various changes since the withdrawal of the Soviet state planning system. The Soviet system that was based on a five-year plan for economic development was replaced with an ambitious restructuring approach that was focused on promoting the engagement of private developers to pursue economic goals. Despite this, the Russian government privatization initiatives were undermined by numerous cases of corruption where the economy was driven by the well-connected elite in the society rather than redistribution of national resources. The country is highly reliant on oil and gas exports. Other key industries include energy, transportation, communications, and manufacturing. The economy was facing various challenges, including the global fall of oil and gas prices and financial crises that had a substantial impact on the Gross Domestic Product in 2009. Despite this, improving global oil prices since 2013 have contributed to an improvement in economic conditions in the country (Guriev & Tsyvinski, 2010). Nevertheless, the economic competitiveness in Russia is affected by the unreformed healthcare system, quality education, capital flight, sanctions, unemployment, corruption, and high crime rates.
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