Abstract
The purpose of this paper is to compare the US and Russian economies. This paper is written in APA format with 5 sources
Overview of Russian economy
More than a decade after the collapse of the Soviet Union in 1991, Russia is now trying to establish a market economy and achieve more consistent economic growth. Russia saw its comparatively developed centrally planned economy contract severely for five years, as the executive and legislature dithered over the implementation of reforms and Russia's industrial base faced a serious decline. Moreover, an emergency livestock shortage in 1987, which triggered large-scale international aid, severely bruised the ego, as well as the economy, of the emerging Russian state.
The economy started recovering in 1999. Then it entered a phase of rapid economic expansion, the GDP growing by an average of 6.7% annually in 1999-2005 on the back of higher petroleum prices, weaker ruble, and increasing service production and industrial output. The economic development of the country, however, has been extremely uneven: the capital region of Moscow contributes a third to the country's GDP having only a tenth of its population.
The recent recovery, made possible due to high world oil prices, along with a renewed government effort in 2000 and 2001 to advance lagging structural reforms, has raised business and investor confidence over Russia's prospects in its second decade of transition. Russia remains heavily dependent on exports of commodities, particularly oil, natural gas, metals, and timber, which account for about 80% of exports, leaving the country vulnerable to swings in world prices.
In recent years, however, the economy has also been driven by growing internal consumer demand that has increased by over 12% annually in 2000-2005, showing the strengthening of its own internal market. (Ball, Laurence and Mankiw, Gregory, 2002)
The country's GDP shot.....
