Main Problems Associated with Economic Development in Russia

What are the main problems associated with economic development in Russia?

Good. 0K. Let’s begin. Good morning ladies and gentlemen. Let me begin by giving our term of reference. It’s my privilege today to be talking to this distinguished gathering of professional experts in the field. My aim today is to discuss the main problems associated with economic development in Russia. IVe divided my presentation into two sections. First, I’ll mention some words what is economic development. Secondly, I’ll tell about the main problems. This will take about 5 minutes.

Fell free to ask questions during the presentation. Right. First of all I’ll give definition of economic development. Economic development can be specified as economy structural changes according to requirements of technological and social progress. The basic indicators of economic development of the country consider increase in indicators of GDP and GNP per capita, testifying to growth of efficiency of use of production resources of the country and growth of welfare of citizens. GDP is the total final output of goods and services produced within an economy for any given year, by both esidents and non-residents.

GNP is equal to GDP plus net factor incomes from abroad. Now for the main problems. The main problems, which Russia on a way of economic development has: 1) Poverty. We have the minimum wage rate at the point of 5000 rub. , while average living wage is 5865 rub. Below the breadline at present live 40% of Russians. 2) Inequality. In our country 80% is the poor( their income below 25 000 rub), riches (income more 75 000 rub) 1%. By estimates of government, incomes of the poorest and richest inhabitants of our country can differ in 800 times! ) Unemployment.

In march 2011 the level of unemployment was 7,2 %, while in Europe 4%. 4) High resource endowment. Russia strongly depends on the prices for natural resources. We have many resources and their export constitutes most part of the budget. So we have no stimulus for search of other possibilities of incomes. So, Just to conclusions. Russia have a big potential, and we can realize it if we make our problems make our strengths. That’s all. Thank you all for your attention. main problems associated with economic development in Russia.