On Russia and Globalization...

“The flattening of the world means that we are now connecting all the knowledge centers on the planet into a single global network, which – if politics and terrorism do not get on the way – could usher an amazing era of prosperity, innovation, and collaboration, by companies, communities, and  individuals.”                                            

Thomas L. Friedman  

The duality of globalization now occupies minds of many economists, politicians, and writers. The effects of a seemingly insignificant transaction can reach out thousands of miles across the planet. The US, despite its current sour state of economy, is still a giant in its financial and economic power that influences all other nations. Interestingly, there is one country with a truly unique (negative connotation implied) history, which is among the least affected by the US recession. While the stock market in the European Union is suffering losses and their banks are writing off tremendous amounts of money, the ex-communist baby is enjoying stability and embracing promises of its new president, Dmitry Medvedev.

Bear

A country that almost went bust ten years ago now boasts a $1.3 trillion economy, foreign-currency reserves of nearly $480 billion and a $144 billion stabilisation fund for surplus oil and gas revenue. Annual growth of real incomes has been in double digits. Per  capita GDP per has risen from less than $2,000 in 1998 to $9,000 today at current rates of exchange.Total GDP has risen from $345bn in 2002 to $984bn in 2006, in dollar terms. It must be noted, though, that this rise is partly due to economic growth, but also because the value of the rouble has soared. Nonetheless, all of this facts may not only be attributed to Putin's successful term. Many critics argue that he has simply ridden the wave (similar to what is said about Bill Clinton in the U.S.)

After the collapse of the Soviet Union in 1991, Gorbachev and Yeltsin did a very poor job to get the state in order. With all due respect to my country, I cannot respect its government becase of the people like these two prior mentioned leaders, whose inconsistent policy and greedy demanours created deeply sunk webs of corrupion and ultimately brought Russia to the state of economic depression. Yet, when Putin came along, the economy has already started its rebound about a year before he accepted his presedental duties. The three main reasons that are usually identified for the recovery and subsequent growth of the Russian economy are: the rise of oil and gas prices (until today, still Russia's single most important source of revenues), the revival of private entreprise, and macroeconomic stability. As most people agree, the third one can be rightfully attributed to Putin. Although Russia still does not shine on the International arena, the stability that has been established stimulates business growth and revives the long lost patriotic spirit. It also explains the high rating of Putin. Speaking on behalf of my fellow citizens, there are two things that make Putin shine in the eyes of Russians: the winning of winter Olimpics in Sochi in 2014, and his handling of the Chechnya war.