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Russia Essay

2507 words - 11 pages

Question 1
(A) Industrial Structure

Russian industry has a variety of sectors most of them mastered during the Soviet Union and the Cold War.
For the famous space race during the 60’s industrial sectors of space vehicles and aircraft were highly skilled, trying to outstand major competitor in the United States.
In the same period production of nuclear reactor and defence industries were quite elevated with the manufacturing of missiles and radars.
Additionally there was a high demand for raw material as iron and steel.

After the Soviet Union dissolution in 1991 which caused drastic changes in the economical structure, many fresh industrial segments started growing along with the economy.
For example mineral production of bauxite and copper, the mining production was emerging rapidly as we can see from these charts. (Euromonitor, Passport, Industrial Charts)

However the key and relevant industry is the production of gas and oil to which Russia is the second largest producer and exporter after United States for natural gas and Saudi Arabia for crude oil. (Euromonitor, Passport, Industrial Charts)

The dependence on this major industry is positive for the economical growth given that the demand for carbon based fuel is highly increasing. On the other hand it can be considered a danger to rely on these major two industrial growth supporters, primarily because oil and gas are scarce sources that will eventually terminate in the long term.
By being intensely focused on the two resources the economy is open to price fluctuations; the industry needs spotlights and a wider range of diversity that can revive the economy.
However Russia has several other minor industries which are vital to the nation as a matter of fact another foremost industry located in Moscow is the machinery building which consist on supplying all the industries with the adequate machinery. The machine industry has different branches starting from transport and ending with robotics and electronics.
Furthermore another crucial production for the national economy growth and its constancy is the chemical and petrochemical industry which provide mineral fertilizers and numerous organic synthesis.
Given that Russia is a vast extension of land, another strong emphasis is posed on the agro-industrial apparatus. There is a large scale production of potatoes, grain, wheat, corns, rice and legumes. Russia is the 4th world producer of cereals after two major BRICs countries (China and India) and the former capitalistic rival the United States.

(B) Collection of macro-economic indicators and Conclusions

• Gross Domestic Product

The Gross Domestic Product is regard as one of the crucial indicator which can define if the country’s economy is healthy although is an estimation given that the data is collected in certain time frames.
I took to analysis the graph of the Real GDP, which take to account Inflation as well. The actual growth of Real GDP...

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