Soviet Union

Is not about quality but quantity

Communism in economics

From 1966 to 1970 under Leonid Brezhnev the Gross National Product (GNP) grew at a rate of around 5.3 percent per year.

Then during 1971 to 1975 the growth declined to an average of 3.7 percent per year. And after 1975 the GNP fell to a growth of between 2.6 and 2.7 percent per year. In these years production around the world was growing rapidly, rising to an average annual rate for the world of 6.2 percent in 1973

The period of 1975–1980 experienced a growth rate of between 1% and 1.9%

Soviet Union’s Economy

1980–1985 saw a further decline in economic growth, between 0.6% and 1.8%

GDP

ChemicalsGold Military Arsenal Petroleum productsAlcohol beverages

export

 foodIndustrial tools

import

 In 1960 the Soviet Union was producing 12.5 percent of the world's goods 

The Soviet Union was keeping up with the United States in the production of steel, pig iron, cement and oil, but the future lay in electronics and specialty chemicals.

From the 1960s a shift had been taking place in work. It was more toward the production of consumer items such as automobiles, electronic devices, pharmaceuticals, civilian aircraft -- a production that was more knowledge intensive, more plastic and less cement.

production

The Soviet Union's biggest customer for its manufactured goods was its military, and manufacturing for the military continued to use the Soviet Union's most skilled people, to the detriment of production for civilians.

The world’s leading producer of steel and oil

Russia

Russian economy overviewGDP: $2.373 trillion (2011 est.) country

comparison to the world: 7GDP - composition by sector: agriculture-

4.2%industry- 37%, services- 58.9% (2011 est.)

Unemployment rate:6.8% (2011 est.)The unemployment rate in Russia was last

reported at 6.6 percent in January of 2012.

Year GDP % Growth 1992 1,170.925 N/A 1993 1,092.674 -8.7 1994 974.005 -12.7 1995 953.528 -4.1 1996 936.706 -3.6 1997 966.589 1.4 1998 925.701 -5.3 1999 999.437 6.4 2000 1,123.181 10 2001 1,207.134 5.1 2002 1,284.333 4.7 2003 1,407.759 7.3 2004 1,548.717 7.2 2005 1,697.957 6.4 2006 1,888.266 7.7 2007 2,099.663 8.1 2008 2,264.608 5.6 2009 2,126.390 -7.5 2010 2,211.450 4

Exports - commodities: petroleum and petroleum products, natural gas, metals, wood and wood products, chemicals, and a wide variety of civilian and military manufactures

Imports - commodities: machinery, vehicles, pharmaceutical products, plastic, semi-finished metal products, meat, fruits and nuts, optical and medical instruments, iron, steel

1998 crisisCaused by:1.Difficulties in implementing fiscal reforms

aimed at raising government revenues2.a dependence on short-term borrowing to

finance budget deficits3.Lower prices for Russia's major export

earners (oil and minerals)

The 2008 crisisCaused by:

1.oil prices2. a crisis in its stock market, by mid-September,

Russia’s stock market had collapsed 3. firms relied on dried up.

Production: agricultureDecrease in agriculture labor force during

the 1990sAgriculture is the most lagging ecomonic

sector Agriculture - products: grain, sugar beets,

sunflower seed, vegetables, fruits; beef, milk

Production: industries2nd largest coal reserves largest natural gas reserves8th largest crude oil reserves3rd largest exporter of steel and primary aluminum.Natural gas - exports: 199.9 billion cu m (2010 est.)country comparison to the world: 1Oil - exports:5.01 million bbl/day (2010 est.)country comparison to the world: 2Other industries: agricultural machinery, shipbuilding,

machines building, communication equipments, defense industries and textiles

TaxesThe income tax rate is a flat 13 percentThe top corporate tax rate is 20 percent. Other taxes include a value-added tax (VAT)

and an environmental taxThe overall tax burden amounting to 34.4

percent of total domestic income.