Turbulence in the Russian Economy Management System

Turbulence in the Russian Economy Management System
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Turbulence in the Russian Economy Management System
Premise
The Russian economy is in turbulence due to internal and geopolitical challenges and threats. Internal and external factors cause economic turbulence and uncertainty. There is a lot of pressure from the West. The economy has been negatively impacted by falling oil prices and ruble depreciation. Geopolitical threats to the economy are presented by campaigns in Syria against Islamic State. The country had also made trade decisions which have affected internal enterprises.
Evidence to Support Argument
The evidence of economic turbulence is indicated by declining oil and gas sector. The country is highly dependent on oil whose decline means an economic crisis for the country. Industries which design rival products like machines, equipment, and machine tool stations have declined. The country is faced with sanctions, and oil prices have decreased rapidly. Political sanctions have impacted the Russian economy by restriction the country from participating in an economic process and freedom of choice and enterprise. Sanctions incite people into a rebellion which translates into a difficult economic situation and eventually overthrowing the constitutional form of government. Accession into WTO in 2012 meant participating in a liberal competitive trade which displaced weaker Russian produces. The gross domestic product (GDP) had reduced by 3.

8 percent in 2015. The current growth rate is small, and tough fiscal policy will remain in light of social expenditures (Askerov et al., 2016).
Conclusion
Russia faces internal and external challenges which threaten its economy. Political sanctions and economic decisions like an ascension into WTO have shown negative implications. The economic growth is slow, and oil prices are reducing. The expected future effects are high inflation and restrained social expenditures. However, there are ways in which Russia can turn its economy around. That is through innovation and market diversity. According to (Askerov et al. (2016), the country can reconstitute the production chain which accommodates production, exchange, distribution, and consumption. There is a need for implementing a strategy which offers a competitive advantage. Import substitution will develop new chains for different industries to improve the economy.
Impression
The article has articulated recent economic concerns and current economic state in Russia. It has given reasons for the economic turbulence which are political sanctions, over-reliance on oil and trade agreements. The article has given future implications if no measures are taken. This article was also keen to provide recommendations for rejuvenating economic growth in the country at a faster rate. In general, the article has identified problems promptly and given possible solutions.

References
Askerov, P. F., Novichkov, A. V., Novichkov, V. I., Nosova, S. S., & Rabadanov, A. R. (2016). Turbulence in the Russian economy management system. International Journal of Economics and Financial Issues, 6(1S).