Economic geography of EUROPE Sswg6

The European Union & the economy One currency + open borders = easy travel and TRADE between countries

Illegal economy in europe Illegal drug trafficking, human trafficking, employment of undocumented laborers, buying or selling counterfeit products, illegal animal trade Illegal economy does impact overall economy

Resources & the economy Coal & Iron-Ore = industrialized economy Mild climates = high tourism = profitable industry Mediterranean = historically fishing & agriculture Manufacturing biggest industry = textiles, automobiles

Economic Geography of Russia SSWG6

Economies of Russia Major changes in region’s economy have greatly impacted the regions development Resource allocation is huge part of economic structure Vast size and harsh climate influence economy Trans-Siberian Railroad connecting interior of country for trade

Development of Russia’s Economy Russia modernized slower than rest of Europe = less developed economy Russia did not industrialize until 1900s Russian Revolution = Communist leaders control all economic decisions

Capitalism & Communism Communists followed philosophies of Karl Marx Capitalism doomed because it concentrated wealth in the hands of a few & left everyone else in poverty Believed communism would replace capitalism Political & economic system in which the major productive resources in a society are government owned, and divided equally among citizens

Command Economy of Russia Soviet leaders adopted a command economy to move their society towards communism Central government makes all important economic decisions Wanted country to be self-sufficient, not depend on foreign trade Gov’t focused on production of defense & heavy industry, not consumer goods = shortage of basic needs Rapid industrialization = goal Collective farms – large labor farms that turned agriculture into an industry under Stalin

Negative Effects & Today’s Consequences Many died of famine Only small portion of people benefitted Government is trying to reduce state monopoly on economic power Return some control to private individuals & businesses

Economic Sectors of Russia Transcaucasia Tourism, agriculture & industry Tea, Fruits, Grapes (Wine) = Georgia Large-scale oil production in Caspian Sea Conflict over which of the 5 border countries gets resources Few benefit, many live in poverty EXTREMELY well educated High literacy rates Soviet gov’t encouraged education programs

Economic Reforms Attempting to switch to capitalist society to match rest of world This takes time, money, resources = does not happen over night USSR collapse - removal of price controls & increase of privatization Selling of government owned businesses to individuals Vast size of Russia = difficult to reform = many regions leaders/policies = distance decay