Overview
snhembrey
india.pptx
With the fall of the Iron Curtain in Eastern Europe, Russia's command economy opened up to the world. The resulting globalization brought about great economic and political changes. While the new market economy promoted growth and modernization, it also deepened the country's class divide. Further, the quick transition from a planned economy to a free market opened the door for rampant corruption. Oligarchs who where friends of the old state where sold sectors of industry for pennies on the dollar. So while globalization paved the way for industrialization and modernization, particularly in the oil industry in Russia, the corruption and class divide brought with it make it a double edged sword.
Like every country in the world, Russia enjoys the benefits of globalization. They have been active in world trade and financial markets. In doing so, they agree to the rules of the games established way before they decided to join. "The global financial system resembles a somewhat democratic society where the voice of a very powerful and representative segment of society is manifested not by vote, but by instant and unambiguous money flows" (Marmolejo, 2014). However, Russia is new to this game. "The Moscow Exchange was established on December 19, 2011, by the merger of the Moscow Interbank Currency Exchange and the Russian Trading System. The Moscow Exchange operates all financial assets across the board: equities, bonds, derivatives, currencies, money markets, and precious metals; in addition, the Moscow Exchange also operates Russia’s Central Securities Depositary and the country’s largest clearing service provider" (Marmolejo, 2014). It resides about in the middle regarding a current per capita GDP of approximately $18,100 (US), with an abundance of corruption, extreme ends of the spectrum regarding the haves and have nots, not to mention the many ethnic conflicts (Marmolejo, 2014). They are largely dependent upon the export of raw materials, such as oil, gas and other related products, but have "a third-world-like economic structure" (Marmelejo, 2014). Despite their antiquated economic structure, they have the largest landmass in the world with the 10th largest population in the world. With Capitalization now taking over some previously communist countries, Putin is slowly destroying the country. His militarist attitude is going to put Russia back to where there were. Marmolejo, M. (March 12, 2014). "Putin, Russia, Ukraine, and the Globalized World." Globalization: Opportunities & Implications. Retrieved on October 22, 2014 from url http://www.understandglobalization.com/2014/03/12/putin-russia-ukraine-and-the-globalized-world/
The global economy is an interconnected marketplace. Speaking from a political and economist perspective, globalization increases integration in the scope of business, values, technology, and various aspects of culture; it fosters interaction between people, organizations, and governments. In pertinence to Russia, the country has been going through an ever-rising transformation in correlation to economic and political globalization. "Since the fall of the USSR, Russia has been faced with the need to fundamentally rebuild its power and identity--and to do so in the unfamiliar, challenging, and often threatening context of globalization." (Blum, 2008) Transitioning economies inevitably face perplexity. In the case of Russia, their transformation has withstood its fair share of difficulties.
Reflecting on the positive side, the nation is a key component in global affairs--with foreign relations involved in eastern Europe, the Middle East, and the United States. It's comprised of a rather large geographical territory and is rich in resources, including oil. This gives them great potential in their attempts to create a market economy and a democratic political system.
Reference:
Blum, D. (2008, March 26). Russia and Globalization: Identity, Security, and Society in an Era of Change. Washington, D.C.: Woodrow Wilson Center Press. Print.
2.69 Billion in China and India combined
Trans-Pacific Partnership (DEAD)
CHINA RISING
ONE CHINA STATE POLICY
TAIWAN
Week 3 was a discussion of Russia and Germany. What have we learned?
Both countries suffered as a result of WWII
Germany rebuilt itself much more quickly than Russia
Events in Russia didn’t start to “improve” until the mid-1980’s
Yeltsin brought about oligarchs and Putin has tamped down rights
Russia is still struggling to find itself in the world economy
Germany was reunified
Germany is the economic engine of the EU
Why did these things happen in each country? What was the culture that led to these
developments?
According to a survey conducted after the unification, East Germans stated that they did not feel
as if they were part of the unification. They felt that the changes from the unification brought
them more losses than benefits (Ciechanowicz &Zawilska -Florczuk 2011).
Socially speaking, East and West Germans were used to two different lifestyles. West Germans
had luxuries and enjoyed advancements while East Ger mans lived in more of a poverty -stricken
lifestyle. Unification pushed those two worlds together;
The introduction of the deutsche mark as the sole currency in Germany caused much conflict in
East Germany. The favorable rate of t he deutsche mark, while increasing salaries, caused a strife
as labor was no longer available at a low rate.
It is without a doubt that the unification of Germany created economic problems for the country,
however, no one expected that the unification would have an enormous negative impact o n
Western Germany and all of Europe.
36.7% of the Earth’s population!
“the region remains relatively untapped and underserved. For example, in Indonesia, which is the
fourth most populous country in the world after China, India, and the United States, industries
such as automotive and banking still have low penetration; most people do not own a car, nor can
it be assumed that they maintain bank accounts or use credit cards. In fact, according to
respondents in a 2011 executives identified their number one strategic priority to be the
expansion of the banking network in Indonesia in or der to tap into the local population.
Part of Southeast Asia’s large market potential emanates from its rapidly growing middle class.
In Indonesia, for example, the middle class comprises approximately 40% of the population, or
more than 90 million people . Within the next four to ten years, this block of consumers is
expected to grow to more than 150 million.
Along with its climbing numbers, the middle class has experienced a rapid income rise. Within
the next decade, some 58% of households in Indonesia a re expected to have annual disposable
income between USD 5,000 and USD 15,000; currently, approximately one -third of Indonesian
households have disposable incomes within this range. ”
What is the economic situation of China? Lender to America …what is their growth rate? Is it
inflated? Can China sustain this? What are the expectations of its population? Can a communist
government survive with a capitalist economy? It has worked t hus far….will it survive long
term? Isnt this a bit at odds with Marx? As a result of this division, what is the relationship
between China and Russia?
Factors inhibiting increased trade between the United States and India:
Lack of a strong Bilateral Investment Treaty
Individual states in the US being reluctant to invest
India’s Central Government being unresponsive and seen as corrupt
