Sunday, November 15, 2009

Overview of the Russian economy and international relations























Before I start commenting on Russian politics, and the rights and wrongs of their philosophy, I thought it might be helpful to have an overview of two very important issues that need to be considered when discussing Russia.

Starting off with the Russian Economy. With a GDP per capita at less then 1/3 of the United States GDP the economic situation in Russia is certainly not ideal. However, why is the GDP so much lower? One theory to explain this phenomenon is Corruption. The CIA fact book for 2010 states "Corruption, lack of trust in institutions, and more recently, exchange rate uncertainty and the global economic crisis to dampen domestic and foreign investor sentiment. " Corruption can certainly become an issue if it infiltrates every part of the economy. Of course there are issues of economic freedom too, but until Corruption becomes reduced, Russia's economy will suffer severely

The next issue to be considered is International Relations. Russia has a history of hostile comments, policies, and relationships. Winston Churchill once said "I cannot forecast to you the action of Russia. It is a riddle wrapped in a mystery inside an enigma: but perhaps there is a key. That key is Russian national interest." This quote gives light to a subject that is delicate in international politics. Throughout history, Russian governments have given no indication of a pattern for the policies or mindsets it enacts. Every administration sets new standards for freedom, and international relations. However, one trend can be seen. Russia always makes policies that are best for... Russia. This seems self explanatory right? Don't all countries make policies in their own best interest? Yes, to a certain point. However, most countries have other countries interests in mind, more of a cooperative international community. But Russia's sole interest seems to be the good of the Russian government. Whether that includes its people, and the international community or not.

These two issues are crucial in understanding relations, and ideological differences between the US and Russia. Next week I'll try to post some more specific information!


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