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- Overview
- Economic Overview: A decade after the implosion
of the centrally planned Soviet Union in December 1991, Russia is still
struggling to establish a modern market economy, modernize its
industrial base, and maintain strong economic growth. The period 1992-98
was marked by a poor business climate, a deterioration in already
threadbare living standards, and failure to institute modern market
reforms. Conditions improved markedly in 1999-2002, with annual output
growing by an average 6% and with progress in structural reforms. Yet
serious problems persist. Russia remains heavily dependent on exports of
commodities, particularly oil, natural gas, metals, and timber, which
account for over 80% of exports, leaving the country vulnerable to
swings in world prices. Russia's industrial base is increasingly
dilapidated and must be replaced or modernized if the country is to
maintain strong economic growth. Other problems include widespread
corruption, lack of a strong legal system, capital flight, and brain
drain. CIA
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