Political System of Russia
Russia’s political system is totalitarian. The political system can also be described as a ‘’managed democracy.” According to Peng, in a totalitarian political system, a single person or party has a lot of influence over the population (34-35). Therefore, the political system of Russia could be described as totalitarian because Putin, the current president, has a significant influence on the acquisition and implementation of power. The country has a centralized political system whereby authority is only concentrated in the president of the country and the prime minister. The president is given strong powers by the Constitution to issue directives and decrees. The president also has the power to appoint the key officials in the running of state-owned enterprises.
Russia’s Economic Market
After the collapse of the Soviet Union, Russia has gone through significant changes. Initially, it was globally isolated but later changed to a globally-integrated economy. After economic reforms, the private sector faced a lot of interference from the state. However, the situation has improved, and the country is now a mixed economy. According to Peng, a mixed economy has characteristics of both a command economy and a market economy (40). The reason why the country cannot be described as a full market economy is that inflation is controlled by the corrupt officials of the government. However, other sectors are controlled by the forces of market supply and demand. For example, currently, its manufacturing sector is not competitive because it mainly focuses on domestic consumption. The GDP of Russia has declined over the past years because of the declining price of oil in the country considering that it is the main export of the country. The rate of growth of the GDP in Russia is expected to go down up to zero because the potential investors are leaving the country. The rate of inflation in the country increases rapidly this is mainly because the enterprises of the country are managed by corrupt officials of the government. From the above arguments, it is evident that Russia does not have an economic market.
Peng, Mike. Global Business. Boston, MA: Cengage Learning. 2009. Print.