“The Property Has Been Fiercely Divided” between the Authorities in Russia and the Capital Is a “Tasty Morsel” for the People Who Govern it – the current economic situation in Moscow

  • Author: Natalia Gburzyńska
  • Institution: Nicolaus Copernicus University in Toruń (Poland)
  • Year of publication: 2014
  • Source: Show
  • Pages: 348–362
  • DOI Address: http://dx.doi.org/10.15804/ppsy2014020
  • PDF: ppsy/43/ppsy2014020.pdf

This article refers to the contemporary situation in the Russian economy and in the Russian capital economy. Economy in Russia is based on the extraction of raw materials. However, in 2010 economic forecasts for the country were optimistic. In this period economic development was strong and the country became a member of the BRICS group. One of the issues of the Russian Federation economy was the backing of the old system. Most investments were focused on the energy sector when in the public sector the changes were smaller. To increase revenues and funds big reforms are necessary and new investments. One possibility to improve the economic situation is to focus on greater extraction of raw materials. Another option is to resign from a monocultural economy. The situation in Moscow is better than the general economic situation in the Russian Federation. GDP increased regularly. In 2008 Russia took 15th place in the ranking of the hundred largest cities GDP. Th e Moscow economy is based especially on the trade of energy resources. Moreover, profi t is gained from business activities and industry. The level of unemployment in Moscow is the lowest in comparison to all regions. In the capital city it fluctuates between 0,5% and 1%. A major problem in the capital city is the constant immigration from other part of the Federation and other foreign countries. In majority, people who come to Moscow are the job seekers. Also the signifi cant problem is ubiquitous corruption.

 

corruption unemployment industry raw materials Moscow capital Russia trade

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