10/15/2004

The New Russia

Everyone has heard of the economic trouble that has plagued Russia in the past but it seems as if they might actually pull out ot it. An article I read on msnbc.com had some information that I found to be interesting, such as according to Forbes magazine Moscow has the largest contingent of billionaires in the world, and in the real estate industry you need at least $1-2 million to find something decent in the area. Quite the change from 15 years ago.

The change has not affected all areas of Russia, though. It's mostly just the major cities like Moscow or St. Petersburg. 20 miles outside of Moscow many people are still living without many main commodities: running water, electricity, gas, etc.

The growth is not free of concern, though. Russia's agricultural and industrial sectors are both in bad shape. A link off of the previously mentioned article states that Russia's economy doesn't grow unless the price of oil is rising. Many people are questioning what strengths Russia has outside of it's natural resources.

5 comments:

John West said...

It doesn't sound as if Russia is headed in the right economic direction afterall. If only one or two Russian cities are experiencing positive economic results, obviously something is amiss and needs a closer look. I've heard many Russians say that when their country was ran as a communist state, they at least had a full cupboard of food. I think that what is happening over there, are many millions of people unsure about how to live and prosper in a democratic society.

Maudi said...

Just because there are a few parts of Russia that are doing rather well does not mean that they are going to "pull it off." It takes a lot more then that to get out of economic trouble. That means that the whole country, or a vast majority of it, are doing well and not living in poverity. Not just a few of them.

Dr. Tufte said...

I have my doubts about Russia too.

How about looking at "the new Poland" or "the new Hungary", or "the new Estonia". I think those places have done more with their opportunities.

Trinity said...

Dr. Tufte said he has his doubts. I think all the comments are rather short term oriented. While it's true the success of a single city in Russia is not an indicator of national success, but it may illustrate the direction of change. Many countries start on the road to success by building a single economically successful city. Milan has done this for Italy. It opened the country for successful industrialization in other areas. Perhaps the success in Moscow will spread as other cities adopt similar behavior.

Dr. Tufte said...

Four years down the road, I think we're getting a better handle on how Russia is generating its "successes".