RUSSIA VERSUS USA: COMPARISON OF ECONOMIES

Russia versus USA: Comparison of Economies

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Russia versus USA: Comparison of Economies

Introduction

United States of America (USA) and Russia both countries are trying to create their dominance throughout the world, but what makes one country developed (i.e. USA) and other is developing is the economic growth and development of the country. United States is the largest market of the world whereas, Russia is the largest country. Less focus has been given by the researchers to comparatively study the economies of these two super powers of the world. In this study the economies and different factors of their economies would be compared, in order to find the two answers: one why USA is a developed country? And second why Russia is a developing country. Russia and USA, both countries are competing with each other to obtained dominance in every sector from weapons to business. However, due to such close competition between these two giant economies of the world, Russia is still in developing phase, though USA is ranked as the developed country. The major reason behind this ranking is the economic health of these two countries. In this regard the study would firstly discuss the economy of Russia than economy of US, to compare several economic factors so that questions that have been asked in the study could be answered in a comprehensive manner.

Economy of Russia

Discussion of economic and social problems of contemporary Russia is often conducted in isolation from the experience of other countries, especially communist. The impression is that for researchers of Russian realities there is no experience of nearly three dozen other countries that came out of socialism, solve problems, similar to ours. This observation applies fully to the discussion of issues of economic growth that began in Russia in 1999. In the domestic literature is dominated by two concepts to explain the nature of this growth. The first relates it to a real depreciation of the ruble after the 1998 crisis and favorable conditions in the oil market. The second reason for growth is called reforms, which conducts the Russian government in terms of political stabilization, which came after the elections in 2000. These reforms are of course, important for long-term sustainable growth. Indeed, for the Russian oil market conditions and the real exchange rate - the most important factors of macroeconomic policies that affect growth, but the nature of this growth still different. (West, 2006)

In the context of the experience of other countries, it is easy to see that GDP is now growing throughout the former Soviet Union and in the first phase, about 1992-1994; growth was not one of them. In 1995, manifested the first signs of economic growth in the Baltic countries (Lithuania, Latvia, Estonia), as well as in states that were involved in military conflicts, or were the object of the blockade (e.g., Armenia, Georgia, Azerbaijan).

In 1996-1998 the first signs of economic growth began to appear in other former Soviet states, but they were extremely fragile and often alternated ...