THE ECONOMIC

DEVELOPMENT
OF RUSSIA
Members:
Trần Thị Mai Hương
Tô Thị Lan Anh
 01 History and development review

02 Economic & Human Development Index

03 Develop models + Factors for success

TABLE OF 04 Weaknesses and Constrant

CONTENTS
05 Lessons learnt for Vietnam
 01
What are the economic development lead to
the success of Russia?

What are the strengths & weaknesses of

02 this economy?

RESEARCH 03
What are the lessons learnt for
Vietnam?
QUESTIONS
 01 Books

02 Other researches

03 Online articles

RESEARCH Statistic from official

04
METHODOLOGY reports: UN, WB, IMF
CONTENTS OF THIS TEMPLATE I. History and development review

1991-1998 1999–2008 2009–2014 2014–present

 CONTENTS OF THIS TEMPLATE I. History and development review

< 1991
 1950s: SU changed: a major agricultural society  a major industrial society.
 ><1970s:SU: Era of Stagnation: (complex demands + bureaucratic administration)
 1975  1985: corruption  crisis.
  1986: M. Gorbachev addressed economic problems by moving towards a
market-oriented socialist economy.

 His policies had failed  disintergate of political and economic

 breakup of the Soviet Union in 1991.
 CONTENTS OF THIS TEMPLATE I. History and development review
1991-1998
 Transition to market economy: a centrally planned economy  a globally integrated
market economy.
 The majority of state enterprises were privatized  govt meet many problems
 1998: crisis (Difficulties in collecting government revenues + short-term borrowing)
 Russia was "the largest borrower" from the International Monetary Fund with loans
totaling $20 billion
 Real GDP by > 40%, hyperinflation which wiped out personal savings.
 in the standard of living (economic inequality and poverty), excess mortality & a
decline in life expectancy.
 I. History and development review

 Recovery and growth.  Inflation remained a problem however, as

 Reason: devaluation of the the central bank combat appreciation of
TIMELINE

ruble the ruble.

 domestic producers more  2007: WB declared that the Russian
competitive nationally and economy achieved "unprecedented
internationally. macroeconomic stability".

1999 2008
 I. History and development review
2009 - 2014
 2008: The global credit crunch (Oil, gas and petroleum products accounted for over
70% of total exports  its limits: prolonged recession in the EU)

 in late 2009: a strong recovery was beginning

 In 2013, Russia was labeled a high-income economy by the World Bank. Moscow
has been by Forbes magazine repeatedly named the "billionaire capital of the
world".
 The country has made substantial improvement recently in areas like innovation
and trade freedom.
CONTENTS OF THIS TEMPLATE I. History and development review

2014 - present

2014: ruble (mainly due to oil prices, sanctions, and the subsequent
capital flight)
2014-2015: 1/4 of banks in Russia left the market.

2016: rebounded, the economy was the sixth largest in the world by PPP and
twelfth largest at market exchange rates.
2019: Russia’s Natural Resources and Environment Ministry estimated the
value of natural resources to $844 billion - 60% of the country's GDP.
II. Economic & Human
Development Index
Capital: Moscow
Population:
145,872,256
(2019)
Surface Area:
17,098,250 km2
Currency:
Russian Rubles
GDP of Russia vs US
USD Billion

INTRODUCTION
Venus has a beautiful name and is the second planet
from the Sun. It’s terribly hot—even hotter than
Mercury—and its atmosphere is extremely poisonous.
It’s the second-brightest natural object in the night sky
after the Moon
13
13 13
The Human Development Index (HDI)
Life expectancy at birth: Number of years a newborn infant could expect to live if prevailing
patterns of age-specific mortality rates at the time of birth stay the same throughout the
infant’s life.
Expected years of schooling: Number of years of schooling that a child of school entrance
age can expect to receive if prevailing patterns of age-specific enrolment rates persist
throughout the child’s life.
Mean years of schooling: Average number of years of education received by people ages 25
and older, converted from education attainment levels using official durations of each level.
Gross national income (GNI) per capita: Aggregate income of an economy generated by its
production and its ownership of factors of production, less the incomes paid for the use of
factors of production owned by the rest of the world, converted to international dollars using
PPP rates, divided by midyear population.
The Human Development Index (HDI)
2017: 0.816

1996: 0.701

source: https://www.theglobaleconomy.com
 5. Germany – 0.936

7. H.Kong, China - 0.933

13. US – 0.924

19. Japan – 0.909 49. Russian Federation – 0.816

1. U.S.S.R.=
A) University of Soviet States Reunited
B) United States of Soviet Republics
C) Union of Soviet Socialist Republics
D) Union of Super Soviet Revolutionaries
2. Who was appointed president of Russia
on January 1, 2000?
A) Gorbachev
B) Yeltsin
C) Putin
D) Medvedev
3. Which is the national animal of Russia?
A: Cow
B: Bear
C: Lion
D: Tiger
4. What are the colours of Russian flag?
A: White, blue and red
B: Green, red and white
C: Red and white
D: Blue and red
5. The Soviet era occurred from
1922
_________ 1991
to ___________

6 . Russia's major trading partners include

Japan the __________
_______, European _________,
Union and the
United __________.
________ States
III
 III.1. Develop models
Institution
Russia Federation: semi – presidential republic state with 83 states
 III.1. Develop models

Institution
 Organize according to mechanism “separation of power”

Legislature Executive

Judiciary
 To avoid manipulating the govt power
 Power is in the hand of some oligarches & “new Russian”
 Citizen’s life meet difficulties.
 Russian institution: not follow Communism >< follow capitalism (not totally)
 III.1. Development models

Economic system

Since the fall of So Viet Union, the Russian transferred centrally-planned economy
into a market economy
 the record of this economic reform is a mixed economy
III.1. Development models

Economic system
 III.2. Factors for success

Natural
resources

Economy policies
(Putinomics)
 III.2. Factors for success
Natural resources

 Oil & natural gas: 20% of

the world’s production
+ large reserve of both fuels
95.7% of national wealth
III.2. Factors for success
Natural resources
 III.2. Factors for success
Natural resources
- Oil and gas > 60% for exports 
provide >30% of the country's GDP.
Eg: The Natural Resources and Environment
Ministry estimates the value of 9.04 billion
metric tons of oil reserves at 39.6 trillion
rubles. The 14.47 trillion cubic meters of gas
reserves cost 11.3 trillion, the ministry is
cited as saying.
III.2. Factors for success
Economy policies ( Putinomics)
 III.2. Factors for success
Economy policies ( Putinomics)

 In 2014: oil price and US and

Western countries‘ sanction on Russia
economy
 West imposed harsh economic
sanctions on Rusisa banks, energy
films & cutting off Russian’ largest
firms from international capital market
 III.2. Factors for success
Economy policies ( Putinomics)

“ Putin watches Russia economy

collapse with his statue” announced
in TIMES in 2014”
 Russia has been estimated that
economic crisis might threaten
Russia economy and Putin’power .
 However, it has looked different
today.
 III.2. Factors for success
Economy policies ( Putinomics)

 2014, Putin has

 Putinomics includes 3
implemented suitable
pronged strategies :
policies with Russia
+ labor market stability
by Putinomics
+ macroeconomic stability
 stability is regarded
+ limited control of state over
as top priority
areas of strategic importance

 these policies has helped Russia survive the double challenges of falling oil
prices and Western sanctions : low inflation, balance budget, debt repayment
 III.2. Factors for success
Economy policies ( Putinomics)

Eg : The ban on food imports from Western countries

has helped Russian agriculture significantly increase
productivity.
Russian-made products in stores now: 77%, (bread,
milk, meat or eggs), the proportion:100% (entire
Russian goods).
In the past, foreign food: 40% of all items sold in
supermarkets
 IV. Weakness and constraint
Economy policies ( Putinomics)

“ Putin set a goal that takes Russia as the 5th in the world about economy “
 take a quick look at Russia today

Weak policy about investment Russia's heavy oil dependence

Unconvenient world relations

 IV. Weakness and constraint
Russia's heavy oil dependence

Russia suffers greatly when the oil

price drops
 oil dependence makes Russia
economy vulnerable to fluctuating
prices

“ Russia’ strength is also its weakness”

  between June and
December, 2014, Russian
ruble declined in value by
59 % relative to US dollar
 at the beginning of 2015,

Case study
Russia had the lowest PPP
relative to the US of any
countries
 decrease living standard...
consequences of oil prices collapse on
Russia’ economy was fast and devasting
 IV. Weakness and constraint
Weak policy about investment

Challenges for investment :

Russia economy is on
+ US imposed sanctions
a path of modest
restricted lending to Russia
growth , which limits
banks, ..  sink FDI into Russia
innovation crucial for
+ “ investors” fear of further
growth
sanction & investing into
countries without strong backing
from its own government
 IV. Weakness and constraint
Unconvenient world relations

Geopolitical conflicts between Western and Russia

have still continued
 US has still imposed harsh sanctions on Russia
 Has negative impact on Russia’ international
relations
Eg: Building diplomatic relations with Japan
 IV. Weakness and constraint
Brain Drain

number of educated Russians are leaving the

country for economic and political reasons.
 Each year, an estimated 100,000 Russians
emigrate to developed countries, 40% - higher
education
 a negative impact on Russia`s economy and its
competitiveness in the world market
 V. Lessons learnt for Vietnam

 Focus on “ growth”
and “development”
 Not only focus on
equally
exploiting
potential aspects
 Not only focus on
exploiting potential
aspects
 Summary

III. Develop models +

Factors for success
I. History and
development review
IV. Weaknesses and
Constrant
II. Economic & Human
Development Index V. Lessons learnt for
Vietnam
 References
https://www.themoscowtimes.com/2019/08/19/long-read-
russias-economy-under-putin-in-numbers-a66924
https://www.project-syndicate.org/commentary/russia-
economic-stagnation-prospects-by-vladislav-inozemtsev-
2019-06
https://www.worldbank.org/en/country/russia/publication/rer
https://tradingeconomics.com/russia/leading-economic-
indexx
 THANKS!
Does anyone have any questions?

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