economic+team

=The Putin Economic Team= Svetlana Mordekov (Tori) Natalay Virokov (Taylor) Helga Schmignoff (Helen) Helaina Tcheikano (Abbie)


 * Putin's Economic Reform **
 * Three factors drive Russian economy: import substitution, oil prices, and government policy
 * Putin pumps up value of Russian currency
 * Putin put 13% flat tax on income
 * Putin addressing problems with foreign investors by striking down local legislation incompatible with federal law
 * Focuses on oil and gas as main Russian exports
 * Prices for oil and gas high at the time
 * 7th largest largest economy in the world with purchasing power
 * GDP increased 6 places from 22th to 10th largest in the world
 * Industry Grew by 76 %, investments increased by 125%, and agricultural production and construction increased as well.


 * Criticism of Economic Reforms **
 * Russian spurt of economic growth wearing off
 * All economic "reforms" has not fixed economy, but rather, put a drag on the economy
 * Industrial Production was focused on oil and gas, but those industries are not infinite, and the economic growth from these industries are now tailing off
 * GDP did not rise to it's full potential (only rose 7%, but it should have risen by 14%)
 * Fiscal policy à failed to control spending, no raise in taxes
 * Only 15% of “windfall” (money made from industries) captured by the state
 * Gains from Putin's initial reforms have worn off --> inflation
 * If "reforms" have worn off already, were they really that great to begin with?

 ** Gaspro **
 * Created in 1989
 * Program was privatized under Yeltsin, but Putin addressed the economic issues left by Yeltsin
 * In 2008 the company produced 17% of the worldwide gas production
 * Largest gas transmission system in the world
 * Gazprom changed abruptly in June 2000, when Vladimir Putin became the President of Russia
 * He launched an attack against what he saw as mismanagement and personal pillaging of state assets and reined in the oligarchs
 * Largest extractor of natural gas in the world and the largest Russian Economy

Works cited
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 * http://en.wikipedia.org/wiki/Gasprom
 * http://www.questiaschool.com/read/107560286