Features of modern economy of Russia. A spurt into the future

The current state of the economy did not arise out of nowhere, but was the result of a not very efficient transfer from the state of the administrative-command to the market model. For the sake of objectivity, it is necessary to recognize that it was very difficult to translate such a huge and unwieldy locomotive to other rails. This is the peculiarity of the modern Russian economy, which is easier to change the economic model of development, for example, the Czech Republic or Lithuania, together with their territory and GDP, rather than do it in Russia.

Life requires change

Since the beginning of the 1990s, Russia's GDP has been steadily declining. From the privatization of the public sector, the budget was not actually replenished. There was an active export of capital abroad. For some time, the decline slowed the depreciation of the population's accumulation - from 90th to 92th years. The decline in economic performance was not so strong.

At the same time, the features of the modern Russian economy are such that if we take the 1990 GDP as a benchmark, then by 2011 it has grown threefold. Although from 1990 to 1999 there was an annual decline from 12% to 33%, and to the level of 1990 we came only in 2004.

A brighter future has come

Real growth began by 2005. And features of development of modern economy of Russia consist that before 1998 it was under construction under dictation of IMF. The main tools for managing the situation on the recommendations of this respected organization were:

• To fight inflation - a reduction in the money supply (failure to meet obligations to budget organizations, non-payment of salaries, pensions, etc.);
• Overvaluation of the ruble (which made non-competitive domestic products);
• Financing of the state budget deficit by issuing T-bills (state treasury obligations, other government securities). The peak of release came in 1998, than it ended - we know;
• High tax rates.

The rate of inflation has decreased (but at what cost, it would be clear if the demographic statistics curve is placed next for the same years). And only in 1999, from the lowest point of GDP, stable annual growth began. After the default, the change of government and the leadership of the Central Bank changed economic policy. These events influenced the features of the modern Russian economy. I had to start all over again.

Storming the market

The transition to the market formation of the ruble led to its decline, which put the domestic producer in a more favorable position. Such features of the modern economy of Russia attracted investments from abroad, made investments of capital inside the country beneficial for domestic entrepreneurs. During these years Western transnational concerns have built plants in Russia.

The tax burden was reduced , the number of taxes was reduced. In 2002, the purchase and sale of agricultural land was authorized. These are the features of the market economy of modern Russia, which allowed to ensure GDP growth and an increase in the real sector. In 2007, the most significant GDP growth was achieved in the last 20 years.

Given these features of the modern Russian economy, experts at Goldman Sachs said that Russia over the next 20 years can bypass the leading European countries in all economic indicators. Recall that GS - the largest bank, is part of the Dow Jones index.