Economy of Russia

January 6, 2019


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Minor direct investment in non-Russian economy seems to be associated with an increased risk of long-term investments. The internal political and economic situation does not allow to include Russia nor the first nor to the second group of countries proposed above classification. There is no edinovlastnym political parties representing the country as a single entity, strictly control the economy and acting on clear predictable rules, but has not yet been formed completely balance mechanism between the major economic groups in the new political conditions. Based on the above, we can assume that trends established in the further development of export-oriented industries and energy, as well as considering the intensity of Russia's integration into the global economy, the penetration of foreign capital will continue. And the more intense will run these processes, the faster the large foreign capital will explore the economic space of Russia, including in the form of direct investment. In this large Russian business, which has no relation to exports should be a united, focused on certain areas and there to compete with foreign investors, or to shift the zone of the middle and small businesses. Obviously, there will be those and other processes. Small business is the natural result of the implementation needs of the society to express themselves.

Entrepreneurship deals with the most active part of the population, the resulting economic benefits, some economic and political independence of states that can evaluate public policy from the point of independent citizens and taxpayers, ie, demand management of public resources, etc. Small business because of its natural features is to some extent a natural opposition state apparatus and economic groups representing him. The increased presence of foreign capital would complicate the situation of small and medium enterprises due to increased competition. But with the advent of large direct investment is likely to accelerate the growth of the economy, its industrial component and, consequently, increase income levels, infrastructure, communications, etc. And these factors have created favorable conditions for the development of small and medium businesses. However, for the successful operation of large capital, domestic or foreign, as already noted, one of the necessary conditions is the political stability in the country, ensuring that the most important role is played by small and medium business, fulfilling important social functions such as employment, sustainable expansion of the "middle layer ", etc. Thus, on the one hand, the state, taking into account the interests of export-oriented sectors of national economy, promotes the expansion of markets outside the country, in exchange providing domestic to foreign capital markets, than creates certain difficulties for small businesses. On the other hand, the government has to support small businesses, as it is essential component of political and economic stability in society, especially during economic crises, and maintain the existing government. Consequently, the development of small business, creating an effective legislative, political and economic base to support it depends on how the state decides to designated dilemma.