Russia

Chekhov’s Russia Ruled by Czar Frequent peasant uprisings Secret societies of intellectuals Rule of Czar and his repression being questioned by all classes

Serfs Akin to slavery Retained claim on the land that they worked Could not move freely Could not marry without permission Lived and worked in abject poverty 1861, Tsar Alexander II freed serfs to help alleviate the uprisings

Effects of emancipation Some serfs moved to towns and found work Some were worse of than before Made owner of cabin and small garden plot around it Estates were divided up ½ went to former serf-owners the rest was given to the local village community Loss of security

Social Classes Intelligentsia Middle Class forming (albeit small) Role as leaders and artists Aware of “backwardness” of Russia Various schemes to remedy Middle Class forming (albeit small) Understood rules of business Could rise to the higher class Exploitation of poor (their former social class) Former Serfs/Poor

Road to a republic Communism (1917-1991) Gorbechev (1985-1991) Modernize communism through openness and restructuring By 1991, country splintered into civil conflicts Russian Federation First election in Russian history 1993 Constitution Prime Minister (2008)

Russian Federation Chief of State – Dmitry Medvedev President Popular election Head of Government – Vladimir Putin Appointed by President and confirmed by Duma Takes over presidency if present dies or becomes incapacitated

Government in a nut shell Prime Minister Two first deputy prime ministers 17 ministers 18 ministries Kudrin holds deputy prime minister and finance Reports to the Prime Minister who reports to the president

Economy Before Now Globally isolated Centrally planned Globally integrated More market-based

Economic Reforms Privatized most industry Did not privatize Energy Defense “Loans-for-shares” scheme Turn over major state-owned firms to politically connected ruling people

Some things still haven’t changed Protection of property rights still weak Private sector has heavy state interference

Globally Competitive Commodity Producers (2009) Largest exporter of natural gas 2nd largest exporter of oil 3rd largest exporter of steel and primary aluminum

Economic Vulnerability Reliance of exportation leaves Russia vulnerable to boom/busy cycle Since 2007, combat this trend Build-up of high technology sectors Few results so far

Growth 7% growth since 1998 Russian financial crisis Doubling of real disposable incomes Emergence of middle class

Global Economic Crisis 2008-09 Hit hardest by global decline Oil prices plummeted Foreign credits dried up (Russian banks and businesses relied on these) Central Bank of Russia spent one-third of its $600 billion reserve to devalue the ruble

Global Economic Crisis (cont’d) Spent $200 billion Increase liquidity within the banking system Aid Russian businesses not able to roll over large foreign debts coming due Mid -2009 Economic decline bottomed out Now showing signs of slow economic growth

Long term challenges Shrinking workforce High level of corruption Poor infrastructure in need of large capital investment