Russian Economy

Fallen Bricks

Over the years, as a communist country, Russia has been storing oil incase of an emergency or some sort of crisis that it would have to deal with in the future. Yet, the country has been on a steady decline to certain destruction and misfortune. Eventually, Russia collapsed, its economy crashed, and in the wake of all of this misfortune it became a post-communist country. The slow increase of the Russian Economy since the fall of communism has forced the government to consider selling all of its reserve oil.

Like many other aspects of Russian life, the Russian Economy underwent a great deal of change in the early 1990's (Smith, Jody). The first thing was the disintegration of the centrally planned economy that was a hallmark for a state-controlled economy (Smith, Jody). Much of the structure of the Soviet economy that operated until 1987 originated under the leadership of Joseph V. Stalin who was in office from 1927-1953 (Smith, Jody). Russia undertakes the transition with advantages and obstacles (Smith, Jody). Although it is only half the size of the former Soviet economy, the Russian economy includes formidable assets (Smith, Jody). Russia possesses ample supplies of many of the world's valued natural resources, especially those required to support a modern industrialized economy (Smith, Jody).

Capitalism is by nature and form a method of economic change, and not only is but never can be stationary (Dyker, David). The direct definition of capitalism is an economic system characterized by private or corporation ownership of capital goods, by investments that are determined by private decision rather than by state control (UNT Dictionary 332). The economic reforms that came about due to the post-Soviet era brought many problems and drastic changes in the Russian Housing System or RHS (Smith, Jody). After a relatively slow beginning in 1992, housing stock in Russia increased dramatically (Smith, Jody). It was fairly difficult for Russia to create a full market system in housing considering that it just went through many years as a communist country (Smith, Jody). The idea of one person owning their own private house and land, without any stand-in from the government was completely opposed by the Russian government (Smith, Jody).

Since 1991, under the leadership of Boris N. Yeltsin, the country has made great strides toward developing a market economy