Russia - Progress Report

Political Reform
Russian politics matured considerably in the 1990s. Following the election of President Putin, the Russian leadership has come to terms with the need to countenance public opinion. Putin released this after a few mishandlings of issues, eg. The Checheyan terrorist attacks, the failed rescue of naval personnel from a nuclear submarine.

The Russian government continues to oppose US foreign intervention (often with China) in an attempt to limit its influence in the Asian region.

Russian Society
Russia is divided between those with money and those without. Alot of those without money drink excessively or resort to crime. Youth delinquency is a major issue as social problems escalate. The nationalist movement in the country is strong - particularly among naive youth attracted into the movement. Corruption is rife. On the positive side, Russia has a credible education system and the importance of education is widely recognised.

Russian Economy
In 2004, the Russian economy grew by 7.1% primarily as a result of strong commodity exports, the most important of which is oil. Urban growth was much stronger in St Petersburg, which recorded growth of 14% - establishing itself as a centre of future economic development.

The biggest investors in Russia to date have been the Europeans & US, with Japan trailing because of security concerns and existing tensions between the countries over Russian annexation of Japan’s northern islands in the closing days of WWII. Some Japanese companies already have a big presence – with Toyota the best selling foreign car company. Toyota will also open a car plant in Dec’07. Japanese companies have invested just $1 billion to date.