U.S. Russia Relations :: essays research papers

Russia, a vast country with a wealth of inhering resources, a well, educated population, and diverse industrial base, continues to experience, formidable difficulties in moving from its emeritus centrally planned economy to a modern market economy. President Yeltsins government has made substantial strides in converting to a market economy since entree its economic reform program in January 1992 by freeing nearly all prices, slashing defense spending, eliminating the old centralized distribution system, completing an would-be(prenominal) voucher privatization program, establishing private financial institutions, and decentralizing trade. Russia, however, has made little progress in a number of key areas that are needed to provide a solid foundation for the transition to a market economy. Russia, spanning 11 time zones and serving as home to about 150 million people, possesses tremendous natural and human resources. Demand today for imported consumer goods, capital equipment, and services remains remarkably strong, with imports representing an unusually large percentage of the national market. Despite outstanding long-term market potential, Russia continues to be an extremely difficult country in which to do business. The Russian Federation continues to pursue a program of dramatic economic, policy-making and well-disposed transformation. Despite President Yeltsins successful re-election campaign, continued economic reform remains subject to the influence of the communist controlled State Duma (the Russian parliament). Even the most rose-colored scenarios envision a protracted process as Russia continues the labor of fashioning a legal foundation for commerce, rationalizing the regulatory and taxation regimes with which businesses must comply, and completing the task of creating from scratch a gamyly effective and consistent customs administration. The duration and final outcome of this process are still uncertain. Consequently, Russia offers U.S. bus iness both high risk, and potentially high rewards.Russian firms and customers admire U.S. technology and know-how, and generally are interested in doing business with U.S. companies. At the same time, there is a aptness in some quarters to suppose that the U.S. is responsible for the changes which have occurred in Russia, especially those which have caused most hardship to individuals and to industry. This sentiment has attracted the support of some political leaders, and in given credence by a significant proportion of the populace. At the same time, a strong U.S. commercial presence is viewed in the Russian Far East as a counterbalance to other regional economic powers.Most Western products and services are in demand in Russia. Of particular interest are consumer goods, including poultry and meats, paper industrial chemicals,