Uncertainty is clearly the scenario that accompanies business people when decide to start operations in Russia. In fact, Russia ranks fairly high on the World Bank Group’s index of difficult places to do business and is strongly related by Russian cultural characteristics and the impact of the Soviet past. The adjustment to a democracy and capitalism is not encouraging at all; massive displays of conspicuous wealth and consumption contrast with the deprivation that can still be found in many second cities and rural areas. Incipient, inefficient and corrupt legal system, and low or not protections for the property make investments risky and unstable. This instability leads that almost all the managers trend to have a short term perspective because the economic and politic volatility. These tensions can be seen in the macro-Russian issues such as politics and economics but also in more micro issues such as internal and external relations within a business context.
Russia is a country that still in a transitional mode, from communist past to an unknown and doubtful future along with a very weak economy and a exceptionally fragile political structure where about half of the Russians depend on the nation. With very limited infrastructure and technology that don’t permit to have glimpse for a better economic future. Besides to these discrepancies the generational conflicts play a preponderant paper. Older Russians who were born, cultured and predetermined at some point in the Soviet period have an position and move toward life and business which contrast to the new generations who have been grew in a somewhat freer, more liberal surroundings. Monocracy and centralized management are the same with the Soviet organization in many people...
... middle of paper ...
..., whether public or privately managed, have need of considerable investment. Technology industry and innovation areas are exceptionally welcome. The challenge for external investors is to establish whether the prospects are good-looking enough to offset the well-known market threats and reservations starting to emerge in the political scenery. in spite of this, few of the key shareholders into Russia have had much reason to be repentant, even though the many challenges. Confronted with ongoing economic events in several of the world’s more developed markets, a rising number of businesses possibly will come to a decision that the development prospects in Russia are worth.
Works Cited
http://www.worldbusinessculture.com/Russian-Business-Communication-Style.html
http://www.deloitte.com/assets/Dcom-Cyprus/Local%20Assets/Documents/PDF/Doing_business_in_Russia_2013.pdf
Historically, Russia has always been a country of perplexing dualities. The reality of Dual Russia, the separation of the official culture from that of the common people, persisted after the Revolution of 1917 and the Civil War. The Czarist Russia was at once modernized and backward: St. Petersburg and Moscow stood as the highly developed industrial centers of the country and two of the capitals of Europe, yet the overwhelming majority of the population were subsistent farms who lived on mir; French was the official language and the elites were highly literate, yet 82% of the populati...
The USSR under Gorbachov and Russia, first under Yeltsin and then under Putin provide evidence of a slow but definite move away from many of the pillars of the Soviet Union. These developments are in the broad areas of governmental ideology, economic systems and the party’s dictatorship and authoritarian control. While addressing these main ideas, it is important to acknowledge that reformation and development does not necessarily imply a shift toward Western systems, rather is a move to a system that works effectively in the nation being studied, here immediately pre dissolution USSR and Russia since that time.
Since the collapse of the Soviet Union, Russia has undergone many changes. These changes were very profound and included the drastic restructuring of both the political structure and the economy. When the Russian people became dissatisfied with the communist system, they pushed for a regime change, which resulted in the dissolution of the Soviet Union and the introduction of a democratic system. Along with these political changes came the economic change from communism to a free market system. The new system and the old system, while initially seeming like they have many differences, are similar in the corruptness and oppression of the people. Because of this, the political and economic transitions from the old system of communism to the new democratic system in Russia have not been successful.
Don Pittis talks about the Russian economy in terms of its periodic dwindling performance, whereas Russia’s decade of outperformance was possible in part because the preceding collapse after the demise of communism was so extreme. This has left ample spare capacity to be brought back into use. It now applies modern technologies and managerial techniques provided further scope for a sustained burst of rapid catch-up growth. Although the falling rouble contributed to the recent rise to 6.9% in March which is a more fundamental reason why inflation remains a problem is that the economy is operating at full capacity. Even the labour market is tight and the unemployment rate is just 5.4%. Moreover, the budget deficit was 1.3% of GDP last year,
Russia is generally apportioned the benefit of having introduced a political phenomenon that basically provided an alternative for capitalism; communism. Since this concept was only set in motion at the turn of the 20th century, we can therefore deduce that, to a large extent, Russia is, to most people, synonymous with leaders such as Lenin, Stalin, Khrushchev, and Gorbachev. This supposition is entirely based on the premise that the Russian revolution of 1914 inherently altered the socio-cultural and socio-political direction of the nation, bringing into birth a never before envisioned era where Russia was not ruled by the Tsars, but by simple men; men who spoke to and articulated the needs of the masses. To this extent, communism, therefore, is largely misconceived as having been the fulcrum of Russia’s civilization. Much of this misconception , as signaled earlier, is based on the growth and progression of the Russian society in the years after the revolution until 1990, when the Berlin wall fell, essentially bringing down with it decades of Soviet Union tradition based on communism.
In an era of discord, chaos, and bloodlust, Russia had temporarily lost its position as an orderly country on the world map. Many events, like the unpopularity of
Russia, spanning 11 time zones and serving as home to about 150 million people, possesses tremendous natural and human resources. Demand today for imported consumer goods, capital equipment, and services remains remarkably strong, with imports representing an unusually large percentage of the national market. Despite outstanding long-term market potential, Russia continues to be an extremely difficult country in which to do business.
“Russia’s Booming Economy; Russia’s Strong Economy; Russia’s Strong Economy is Driven by More Than Oil.” Global Agenda 18 June 2007: n. pag. Global Issues in Context. Web. 28 Feb. 2014.
Russia's political institutions remain comparatively weak and political power is highly centralized, particularly at the presidential level, which maintains a dominant presence. Continued government interventions, regulations and an inefficient and corrupt legal system weigh on the cost and pace of doing business in Russia. These factors seriously hinder investment, both foreign and domestic. The corruption is very high and considered one of the most important political factors in Russia, as more than half of the population feels that corruption has increased and that the efforts of the government to reduce its levels are inefficient. (See App.11) The Corruption Perceptions Index placed the country in the lower section of the list (133 of 176 countries) showing the high corruption and bureaucracy in the country. Corruption and deficiencies in the rule of law limit Russia’s FDI potential. The Human development Index of
Thankfully, between the late 80’s and early 90’s when the cold war ended, democratic revolutions swept around the communist world. Toppling those constricting systems and opening the opportunity for personal freedom and freedom of commerce. Today there are fifteen countries, but many still hold onto socialistic thinking. Thankfully, you can do business in Russia since oil and gas are a major part in their economy. Ben McClure wrote an article in Investopedia.com, he thinks Russia is ‘busting to boom’, “For investors, Russia has ample economic and market growth opportunities…Russia has increased steadily to keep on par with other dominant emerging markets such as Brazil, India and China… Russia has one of the largest populations in the world – around 150 million
It was a widely held belief that with the fall of the Soviet Union Russia would make a rapid transition into democracy and free markets. “This overlooks the crucial role of political culture in shaping and supporting political and economic institutions. Russia did not have the political culture appropriate to western-style institutions and so became chaotic and lawless. For Russians, democracy became a dirty word, as it symbolized Russia’s troubles.
... industrial sector but would experience many setbacks simply due to the size, diversity, and traditional ways of Russian workers.
Even with Russia’s vast amount of land only, a small percentage can produce crops, as the rainfall is inconsistent and the northern tundra are not able to support growth. None the less fishing industry, livestock, and grain have been a staple for feeding the Russian people. Due to this family close, and extended have banded together to take care of each other on a larger scale. Another issue Russia faces is the rise of insurgency and could potentially destabilize the region, by Islamist. There is also the unrest and intervention in the Ukraine. Civil consideration
Kazakhstan was ranked 59th in 2010 according to the World Bank’s ratings. Since then, several government actions took place to improve the business climate in Kazakhstan such as improving credit facilities, developing of banking systems, reducing the minimum capital requirements for business startups. This means that more and more countries are interested in doing business in Kazakhstan.
Today Kazakhstan is one of the well developing countries in the whole world. Since Kazakhstan became independent country in 1991 and from that period many things were significantly changed including of course business environment. The country was developing in terms of such factors as economic, political and legal, demographic, social, competitive, global, and technological. Kazakhstan is in the 9th place by territory and located in Central Asia, and also has access to the Caspian and the Aral Sea where a huge amount of oil has. The neighbors that Kazakhstan has connect are China, Kyrgyzstan, Turkmenistan, Uzbekistan and the Russian Federation. In addition, with all these countries Kazakhstan has good relationships in different spheres. As I mentioned above from the moment when Kazakhstan got independence there were a lot of changes, for example, whether before the capital was Almaty then from 1997 the capital of Kazakhstan became Astana. Today Astana is one of the biggest and beautiful cities that attract many tourists to visit Kazakhstan. Talking about language that official is definitely Kazakh and also Russian language is quite widespread that many people can speak free. Furthermore, Kazakhstan possesses a rich selection of mineral reserves as well as numerous oil and gas fields. Kazakhstan’s strategic location in Eurasia has important implications on the country’s economy, politics, and culture which collectively create a favorable business environment for multinational companies. The factors that I would like to write are economic, legal and political.