1. Russia

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

3. 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

4. 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

5. 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

6. 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)

7. 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

8. 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

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

10. 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

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

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

13. 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

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

15. 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

16. 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

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