The russia environment.

Essay by sundi_sslUniversity, Bachelor'sA-, May 2003

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Over the past year the subject of WTO accession has become one of the hottest foreign policy issues in Russia. It is clear from Russia's long history, the size of its internal market, and its importance in the shaping of world politics that the process of Russian economic reform will have wide-ranging political and social implications.

Now Russia is going to become one of the members of the World Trade Organization (WTO). It not only gives lots of advantages to the Russian company, but also some negative problem. After joining the WTO, there will be lots of foreign investment in Russia. Whether it's environment suitable for foreign investors? In this article, I will analyse the economic, political and culture environment in Russia.

Economic environment

Russia has made great progress in achieving macro-economic stabilisation and is currently pursuing a successful transition to a market economy.


Through out twenty years of development, the Russian income level has increased constantly.

We can conclude this by the GDP and GNP. .Over the last few years, the annual Gross Domestic Product (GDP) growth 6% in Russia.Moreover, we can see at the figure of Gross National Product (GNP), which was 8,660 US dollars, rank 79 in the world. Here, we should notice that in 2001 the GDP went up 5.1 percent, which is one of the best figures in the world. Furthermore, Russia's GDP grew 4.2% 2002 and GNP grew by approximately 4% in the first half of 2002. Rapid Russian real GDP and GNP growth both has benefited from rapid rise of net exports and domestic demand.

On the other hand, according to a forecast released by the Russian Economic Development and Trade Ministry, growth of real incomes reduced the share of the population below the subsistence level to 33% in...