1. Chapter 16, Section 1: The Economy
Russia Today
Chapter 16, Section 1:
The Economy

2. Important Vocabulary
Command Economy: the gov’t makes all key economic decisions.
Consumer Good: goods needed for everyday life.
Black Market: illegal trade in which illegal or scarce goods are sold at high prices.

3. Vocabulary (Cont’d) Market Economy: privately owned businesses.
Privatization: change from state-owned to private ownership of companies.
Kolkhoz: farms worked by farmers who shared a degree in the farm’s production and profits.
Sovkhoz: farms run like factories, with farmworkers receiving wages.

4. The Soviet Economy The Soviet Union had a Communist economic system.
Unemployment was nearly nonexistent.
Low living standards.

5. The Russian Economy
Gorbachev, in 1985, began shift to market economy with perestroika.
Yeltsin, in 1991, 90% of price controls removed.
Between 1990 & 1995: Russian GDP fell 50%.

6. The Russian Economy (Cont’d)
After 1998 financial crisis, Russian ruble lost 71% of its value.
Russian economy rebounded, but there are still issues.

9. Agriculture
During the Soviet era, the gov’t controlled production and prices.
In the 1990s, Yeltsin restructured state-run farms to market-base.
New land code in made farmland more affordable.

10. Industry The industrial sector fell after the U.S.S.R.’s collapse.
Encouragement in foreign investment.
Most important industry is oil.

11. Trade Over 50% of Russian exports are energy and fuels.
Major trade partners: the European Union, China, and Japan.
Russia has joined trade organizations.

12. International Relations
Russia holds a seat in the United Nations security council.
It has joined various European organizations.
Recent Russian aggression and expansion.

13. Chapter 16, Section 2: People and Environment
Russia Today
Chapter 16, Section 2: People and Environment

14. Important Vocabulary
Nuclear Waste: the by-products of producing nuclear power and weapons.
Radioactive Material: materials contaminated by residue of nuclear energy and weapons.
Pesticide: chemicals used to kill crop-damaging insects, rodents, and other pests.

15. Nuclear Wastes The Soviets neglected the effects of industrialization.
Between 1949 and 1987, the Soviets set-off over 600 nuclear explosions.
Some nuclear wastes can remain radioactive for thousands of years.

16. Chernobyl, Ukraine (1986)
Fire in nuclear reactor emitted tons of nuclear particles into the air.
Thousands died from radiation poisoning – humanitarian disaster.
People still suffer from illnesses.

17. Water, Air, and Soil Quality
Aggressive industrialization has polluted Russia’s lakes and rivers.
Toxic waste dumps have poisoned Russia’s soil.
Poor air quality from burning fossil fuels, industries, and vehicle emissions.

18. Managing Resources The World Bank’s Forestry Pilot Project.
Better land usage, reforestation, and private investment.
Russians have called for higher environmental standards.

19. Future Challenges Decline in the fish population.
Oil pipelines threaten the wildlife and environment.
Grow Russia’s economy while preserving and protecting its geography.