PODCAST SCRIPT

BRICS NATION- RUSSIA

COURSE- MBA FMB 1st Year
MACRO-ECONOMICS

SUBMITTED BY- (GROUP-8) SUBMITTED TO-

ISHAN SINGH (2484130020) DR. Sushmita Goswami
SAJAL SAXENA (2484130039)
SHUBH GARG (2484130045)
ASHA KUMARI (2484130008)
MOHIT SINGH (2484130030)
ISHAN SINGH
GEOGRAPHIC INFORMATION ABOUT RUSSIA-
Russia is the biggest country in the world and spreads over
two continents, Europe and Asia. It is known for its extreme,
hostile, temperatures, but Russia is also a country with vast
uninhabited lands, which you can most easily observe during
a train trip. If you look at a map of Russia you quickly realise
that the European and southern parts are scattered with big
towns; the rest of Russia, with its hostile tundra and
impossible temperatures, is largely unpopulated.
Most of Russia is covered by plains and plateaux, with a few
mountain ranges: the Ural Mountains which mark the border
between Europe and Asia, and in the south, the Caucasus,
Altai, Sayan and Yablonovy. In the north-east, in Kamchatka,
there is a large chain of volcanoes. The south, not far from
Mongolia, is delineated by Lake Baikal, a huge lake which
has the purest water in the world. The landscape around has
allowed it to develop a very interesting micro climate. That
said, because of the tectonic plates, this area of Siberia often
experiences big earthquakes.
Russia also has huge amounts of natural resources. Its soil is
full of riches, especially petrol and natural gas. There is also a
lot of coal under Russian soil and lots of mines to extract it,
making it one of the most attractive employment sectors.
With an extreme continental climate, Russia is known for its
rigorously cold winters, which frequently reach -30°C, and in
some particularly hostile regions can reach -60°C.
North Russia is characterised by tundra - virgin lands, bare of
everything except moss, lichen and heathers. The earth does
not encourage trees to grow because it is deep frozen. In this
part of Russia, which is extremely cold and sparsely
populated, the animals rule - polar bears, seals and reindeer.
Despite the cold which dominates the country, Russia has
several distinct climates which gives regions different
geographical particularities, such as taiga.
SAJAL SAXENA
POLITICAL SCENERIO-
Russia is a democratic federal state with a republican form of
government. The legislative body of the Russian Federation is
the bicameral Federal Assembly (the Council of Federation
and the State Duma). The Council of Federation consists of
representatives of each federal entity. The deputies of the
State Duma are elected for a term of 5 years from party lists
by proportion of the votes that each party receives nationwide.
The Head of State is the President of the Russian Federation,
who is also the Supreme Commander-in-Chief of the Armed
Forces. The President is elected by citizens of Russia by direct
secret ballot for a term of 6 years. Vladimir [Link] was
elected President on March 4, 2012.
The executive power is exercised by the Government of the
Russian Federation. The Chairman of the Government is
appointed by the President with the consent of the State
Duma. The Russian Federation consists of 85 federal entities
(republics, territories and regions), including the cities of
Moscow, [Link], and Sevastopol.
Moscow is the capital of Russia. The President of the Russian
Federation is the head of state, Supreme Commander-in-chief
and holder of the highest office within the Russian Federation.
However, he is not the head of the executive branch. The
Government of Russia is the highest organ of executive
power. The current President of Russia is Vladimir Putin
Constitution and federal state of the country.
The government exercises executive power in the Russian
Federation. The members of the government are the prime
minister, the deputy prime ministers, and the federal ministers.
It has its legal basis in the Constitution of the Russian
Federation and the federal constitutional law “On the
Government of the Russian Federation.”
The prime minister is appointed by the president of the
Russian Federation and confirmed by the State Duma. He or
she succeeds to the presidency if the current president dies, is
incapacitated or resigns. The current prime minister is Dmitry
Medvedev.
The government issues its acts in the way of decisions and
orders . These must not contradict the constitution,
constitutional laws, federal laws, and Presidential decrees, and
are signed by the Prime Minister.
SHUBH GARG
WHICH TYPE OF ECONOMY DOES RUSSIA HAVE-
The economy of Russia is an emerging and developing, high-
income, industrialized, mixed market-oriented economy. It has
the eleventh-largest economy in the world by nominal GDP
and the fourth-largest economy by GDP. Due to a volatile
currency exchange rate, its GDP measured in nominal terms
fluctuates sharply. Russia was the last major economy to join
the World Trade Organization (WTO), becoming a member in
2012.
Russia's human development is ranked as "very high" in the
annual Human Development Index. Roughly 70% of Russia's
total GDP is driven by domestic consumption, and the country
has the world's twelfth-largest consumer market. Its social
security system comprised roughly 16% of the total GDP in
2015. Russia has the fifth-highest number of billionaires in the
world. However, its income inequality remains comparatively
high, caused by the variance of natural resources among
its federal subjects, leading to regional economic disparities.
High levels of corruption, a shrinking labor force, and
an aging and declining population also remain major barriers
to future economic growth.
Following the 2022 Russian invasion of Ukraine, the country
has faced extensive sanctions and other negative financial
actions from the Western world and its allies which have the
aim of isolating the Russian economy from the Western
financial system. However, Russia's economy has shown
resilience to such measures broadly, and has maintained
economic stability and growth—driven primarily by
high military expenditure, rising household
consumption and wages, low unemployment, and
increased government spending. Yet, experts predict the
sanctions will have a long-term negative effect on the Russian
economy.
Key Statistics
1. GDP: $1.73 trillion
2. GDP Growth Rate: 2.5%
3. Inflation Rate: 5.5%)
4. Unemployment Rate: 4.5%)
ASHA KUMARI
IMPLICATION OF MONETARY AND FISCAL
POLICIES IN RUSSIA ECONOMY
Monetary Policy Implications
1. Inflation Control-
The Central Bank of Russia (CBR) actively uses interest rates
and money supply to manage inflation.
High Inflation-Tighter monetary policy (higher interest rates)
is used to reduce demand and control inflation.
Deflationary Risks-A more relaxed policy stimulates
economic activity by lowering borrowing costs.
2. Exchange Rate Stability-
Given Russia's dependency on oil and gas exports, the ruble is
susceptible to global commodity price fluctuations.
Policy Role- The CBR uses currency interventions and
reserves to stabilize the ruble.
3. Credit Growth-Monetary policy affects credit availability
for businesses and households. Tight policies often restrict
credit growth, while loose policies promote borrowing and
investment.
4. Sanctions Impact- Western sanctions have reduced access
to international financial markets, forcing the CBR to rely on
domestic monetary tools and gold reserves to sustain liquidity.
Fiscal Policy Implications
1. Resource Dependence:
Russia's fiscal health heavily depends on oil and gas revenues.
High Energy Prices- Generate budget surpluses and allow for
higher spending.
Low Prices- Lead to deficits, often necessitating spending
cuts or borrowing.
[Link]-Cyclicality-
Fiscal policy in Russia often aims to offset economic
[Link] downturns, public spending and subsidies
are increased to support [Link] periods of growth,
surpluses are saved in the National Wealth Fund (NWF) to
cushion future shocks.
3. Defense and Social Spending-
A significant portion of the budget goes to defense and social
programs. High spending on these sectors can limit
allocations for infrastructure and innovation.
4. Taxation Reforms-
The government has aimed to diversify revenue sources by
increasing taxes on sectors outside of energy to reduce
dependency on oil and gas.
MOHIT SINGH
IMPACT OF RUSSIA POLICY ON BRICS
Russia's policy has significantly impacted BRICS, particularly
in the areas of economic cooperation, global governance, and
geopolitical influence.
Economic Cooperation
Russia's chairmanship of BRICS in 2024 aims to deepen
economic ties and promote a new economic world order. The
country seeks to strengthen its economic position by
expanding cooperation with other BRICS nations, particularly
in areas like energy, trade, and investment. Russia's energy
exports have become a crucial aspect of its economic
cooperation with other BRICS countries, with China and India
emerging as significant markets.
Global Governance and Geopolitics
Russia's policy has also driven BRICS' efforts to challenge the
existing global governance structure and promote a multipolar
world order. The country seeks to create alternative centers of
global governance, bypassing traditional Western-dominated
institutions. This approach has been reflected in BRICS'
expansion, with the addition of new members like Egypt, Iran,
and the UAE, which aims to increase the group's global
influence.
Challenges and Opportunities
While Russia's policy has propelled BRICS' growth and
influence, it also poses challenges. The group's expansion has
introduced new complexities, such as coordinating diverse
national interests and addressing economic inequalities among
member states.
Overall, Russia policy has significantly shaped BRICS'
trajectory, driving economic cooperation, global
governance reforms, and geopolitical influence.