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1. You should write a comparative analysis of regional features of contemporary economy in


1.You should write a comparative analysis of regional features ofcontemporary economy in:a)Moscow and Moscow Region

Moscowand Moscow region is a major center for commercialization, culturalpractices and endowment of various portfolios of enterprises invaried industries in addition of metal work, engineering, defense andbuilding materials. Its industries depend on the skilled labor fromMoscow city than the raw materials. In the engineering sector, thefollowing are manufactured machine tools, aerospace designs andmeasuring instruments and ball bearings. Chemical industry which wasinvolved in production of dyestuff for use in textiles for instancenatural fiber and synthetics have now tuned to rubber tires,plastics, perfumes, paints and synthetic rubbers (Hallet al, 74).

Financing,banking and telecommunication services have increased tremendouslyover the years while the oil endowment keeps on improving the Russianeconomy. In addition, Moscow is a very crucial transportation center.However, the region is historically known as a research anddevelopment centre although there were endeavors to initiate theacademic towns during the soviet period in some rural areas. The areahas two important economic technology research zones namely Dubna andZelenograd.

Aunique characteristics of its economy is that despitedisproportionally in national wealth share concentration during theSoviet times, also extend of concentration has been increasing since1990. Since 2000, Moscow is responsible for the Russia’s economicwealth by one fourth. The salary averages is very high in this citythan other towns, despite salary composing of one fourth of cityresidents earning in comparison to three fifth belonging to allRussians who acquires large proportions of their salaries throughentrepreneurship and rent. Finally Moscow has high prices for realestate (Hallet al, 76-80).

(b)Western Siberia

Thisregion is one of the twelve regions of Russia and it is compromisedof Tomsk Region, Altai Territory, Altai Republic, Tyumen Region,Khanty-Mansi Autonomous Area, Kemerovo Region, Novosibirsk Region,Omsk Region, and Yamalo-Nenets Autonomous Area. Hence the economicsituations are different from one region to another. Altai republicmainly depends on agriculture, for instance long distant-pasturelivestock farming, horse breeding, deer and goat keepings in additionto bee-keeping. Altai territory is endowed with good developedindustry for instance metal work, engineering and chemical sectors.It s known for provision of one sixth of Russia tractors, ninetypercent of tractor plows, fifty parent of all generators and hundredpercent of railway freight cars. In addition, it is the third largestproducer of milk and grain and the Russia’s fifth largest producerof meat.

InNovosibirsk region, agriculture is also practiced for the productionof the following eggs, pork, grains, wool flax, milk, beef, lamb,potatoes and vegetables. Other important activities include thefollowing poultry, breeding of horses, bee keeping, fish farming andfur production. Nearly eighty percent of oblast is found inNovosibirsk’s the processing industry provides nearly ninety fivepercent of its total production. A lot of business activities, iscarried out in this region and leads in the west Siberia as abusiness destination. In fact it hosts the Siberian interbankcurrency exchange alongside many other offices of foreign and Russiancompanies. Many industries are situated in this region includingmachine –building and metal working like electric generatorsproductions, metal cutting machines, textile and wood processing,polymers, plane parts, electronics and chemicals.

Khanty-MansiAutonomous Area is the leading oil and gas producer in Russia and itis also the largest oil producer in the world. Tyumen Region is aregion which is the leading Russian user of industrial output andthis region depends heavily on gas and oil. Important agriculturesectors include the production of eggs, fishing, herding of reindeer,milk and green vegetables (Fionapar).It is apparent that nearly all west Siberian regions have aspecialization in processing and oil extraction and this also isemulated in Omsk region which specialize in woodwork and timber anddefense manufacture. It has large mineral reserves for peat and iron,and petrochemicals. It hosts Siberian chemical complex which islargest nuclear industry in Russia producing nuclear power and heat.

Tomskcity has been branded as an important economic zone for research anddevelopment. Yamalo-Nenets Autonomous Area has oil and gas whichaccounts for ninety three percent of its industrial productions,where more than ninety percent of Russia natural gas and ten percentof its oil is produced here. Kemerovo’s is involved in s coalmining where Kuznetsk Coal Basin is one of the largest basins in theearth. There is also Engineering and chemical industries inKemerovo’s (Fionapar).


Thegreatest economic decline which Ukraine got through the USSRcollapse, with nuclear armament loss, national wealthmisappropriation and development of an image depicting it as acountry with no marketable economy, made a lot foreign investors shyfrom Ukraine till late 1990s. IMF and World Bank depended onprivatization of state assets and market derogation to deal with thecrisis. The wealth distribution early in nineties led to manyoligarchs and led to many people being poor. Everyone was termedsoviet intelligent for instance the scientists and artists who baredmost blunt when the government in place could not fund culture andscience. A lot of skilled specialists and young individuals moved toUSA and Europe during that decade (Justin,par).

BeforeSoviet Union collapse, Ukraine accounted for more than one fourth ofUSSR’s GDP during the worst periods. There were many other sectorsdeveloped such as service mining, metal working, textile, chemicalsand agriculture. It was one of the countries affected mostly by worldfinancial crisis. A rampant decrease in prices of steel, and exportin addition to collapse of capital markets created stress in realeconomy and banging sectors.


Inthis region, it received increased economic development afterreceiving economic aid from IMF and World Bank in the year 1995. Inaddition, it developed its economy after Baku-Tbilisi-Ceyhanoil pipeline construction, which assisted provide employments for themany jobless Georgians. However, many of the people still work inagriculture sector and contribute approximately 20percent to GDP.Other contributing sectors towards GDP include communication(nineteen percent), hotels (seventeen percent), financial services(twenty percent) and construction (thirty three percent). Georgia hasimplemented reforms in mining and construction and banking sector. Itdepends on increased foreign capital and it suffered a lot during theglobal crisis. I 2008, it got an IMF loan to bolster itsinternational reserves and investor confidence.


Kazakhstanis well endowed with a lot of natural resources like metals and fuelreserves. It exports oil, machinery, chemicals, metals, ferrousmaterial and grain and its GDP growth is approximately eight pointfive percent. Services provision accounts for approximately 54.8percent, industry 39.4 percent and agriculture 5.8 percent.Approximately, 14 percent of people live in abject poverty inKazakhstan. The foreign investment is important in Kazakhstan and itconsists of approximately 30 percent of total GDP. She exports mostof its products to Germany (12 percent) and China (16 percent).Moreover, its fertile lands provides a rich agricultural potentialand walnut and apples are produced in south Kazakhstan.

(7)Analyze contemporary social and economic conditions and environmentalproblems in&nbspMoscowCity

Manyvisitors in the region describes Moscow city with its ten and halfmillion people as uninviting and marshy place with depressions andinsecurity looming particularly in the beginning of world financialcrisis. It is a city with a lot of wealth inequalities while some fewpeople are rich and many individuals are poor (Sowell,30-40).As a result, it is among the world’s highly expensive cities. TheRussian economy accelerated by petrodollars and high inflation haspaved way for some individuals to amass a lot of wealth by deprivingother people’s right to decent livings.

Itis also affected by political corruption for example Russianpolitical leaders blamed the authorities who fixed the 2009 electionto a new council and later claimed that democratic candidates hadbeen kicked off the ballot. However, many people are still migratingto this city since there it is easy to find work here and there arefew jobs in other cities and this migration has really fuelledtension among the migrants and the locals born in the city. Therewere migrants from soviet republic e.g. Armenia and Georgia and otherRussian people especially Muslims like Kabardino-Balkaria,Chechnya, and Dagestan. The Chechunya migrants were mainly engagingin criminal activities as it had formed a group called Chechen Mafiato do criminal activities. It had a great network and accesses thehuman and economic resources. The central Asian migrants were alwaysdiscriminated by looked down than being hostile against.

Concerningthe oligarchs or rich people, they had many expensive shops andleisure infrastructure in the city. The city is also renowned for itsbooming businesses with many services for business travelers. In thiscase the people have been categorized into two Muscovites where onepart is referred as ordinary citizens while another lives inapartments and feasts at flashy restaurants (Schmidt,8-11).Another problem in Moscow is that every young girl has a dream ofmarrying the wealth oligarch or a rich western person and does a lotto improve their styles and images. They mostly wear high heeledshoes and expensive outfits throughout. Many young Muscovites flash alot of any disposable money. Everyone looks for brand and fameattributes.

Thereal estate prices are what make Moscow very expensive since a fewyouthful managers can be able to afford to rent their own place andpurchasing an apartment is a dream which can never be fulfilled.Coincidently, a middle class people have sprang up recently sincethere are global companies who have their offices. Due to profitablereal estate, there is emergence of conflicts on property regularly.In 2009, a Moscow mayor was charged with destruction of Russiancapital architectural heritage and building shanty buildings to sinceit demolished it to build blocks of luxury flats.

Thereare also environmental problems in Moscow. Vast development has leadto no land for green areas and open spaces. In addition, due to itslarge size, traffic jam is always experienced in the city.Metro network has been devised to avert traffic jams despites itslimitation to many pole. It is fast and convenient than private carsand this can also be used to ameliorate the environmental problems(Sowell, 30-40). Since it is faster to commute through metro thandriving, people drives to the nearest station and leaves the carsthere then travel underground. This system has witnessed alsoproblems since it is overcrowded due to many people in the city thanother cities hence many residents prefer cars for status and comfortreasons. Worse still it has been found that the city hasapproximately 3.82 million registered cars and will increase to 8million in 2015.

Asa consequence of heavy traffic and also planes and constructionsworks, noise pollution has been at highest peak. It has been foundthat more than seventy percent of the residents stay in fatal noisecondition. Air pollution is also increasing as a result of a lot ofcars in Moscow. Lastly, the Moscow River which passes the city ismanifested by a lot of waste dumping and time to time oil spillage.

(8)Analyze contemporary social and economic conditions and environmentalproblems in: Georgia

Despitethe education levels of women and men in Georgia being high, thewomen empowerment in this country is still low. There is limitedopportunities for professional and career growth for many women. Thisproblem has caused many women to be vulnerable to poverty andstarvation. Due to the end of soviet system of ‘quota’ whichalways ensured that women proportion in the administration andpolitical opportunities are considered and included, the currentGeorgian political inclination is now fully dominated by men in everylevel. A very minimal or small proportion of women is incorporatedand holds senior positions both in the executive and legislativebodies. There are seventeen cabinet posts in Georgia’s legislatureand in these positions women have been given three positions whilethe rest are taken by their male counterparts. In addition, it thereis no female occupying any post on the regional gubernatorial seats(The World Bank, par).

ContemporaryGeorgia is affected by great poverty and lack of job opportunities.This has prompted a lot of migrants to the Georgia. It has beenfound that nearly 960,000 people migrated to Georgia before the year2002. In this regard the long absence of members of families of theworking age has led to upsurge in the pressure on the economics ofGeorgian people remains behind. These are especially the women (TheWorld Bank, par). Moreover, many women of working class have begunmigrating to Georgia in search of job opportunities. Based on thesurvey carried out by International Organization for Migration in2003, up to 40 percent of the migrants in search of jobs from Georgiaare mainly women and this percentage tends to increase. Thisincreasing seasonal migration has also been found to initiate fatalhealth risks. The migrant workers who are coming back encompassedwith a very low public awareness on health issues and prevention havesuccumbed to and increases the sexually transmitted infections orSTIs and including the HIV/AIDS in this country of Georgia. Georgiahas been found to have the highest rate of sexually transmitteddiseases among all the counties which composed the Former SovietUnion. In the year 2004, it was estimated that Georgia had 600registered HIV/AIDS cases and the current interactions of theGeorgians to the people of Russia implies that the current trend ofsuccumbing will tend to increase by the end of 2015 (The World Bank,par).

Anothersocial problem in Georgia is the violence meted mainly on women. Thelocal and international organizations have been carrying out a lot ofcampaigns on antiviolence on recent years. The Anti Violence Networkof Georgia which was supported Estonian institute for open societyresearch said that a third of women in Georgia are victims ofviolence. The women violence is worst experienced in Kakheti a areain which a lot of women are looking for social supports followed byShida Kartli, Mtskheta-Mtianeti and Samtskhe-Javakheti then KvemoKartli, Racha, Imeerti and Adjara.

InTbilisi, the violence is not rampant where nearly 30 percent of womenhave experienced the domestic violence. To avert this problem ondomestic violence on women, the government through the Patrol PoliceFaculty of the Ministry of Internal Affairs of Georgia (MIA) has madeefforts to single out the victims of domestic violence and issue themwith enough legal and social aids and this concept has led toincreased trust among the Georgian victims on police. Allrepublics under the former USSR suffered a lot of environmentalproblems especially degradation during this period and Georgia wasnot left behind. This was aggravated by the economic policies whichentailed the heavy industrialization implementation in totaldisregard for environmental conservation and protection. As aconsequence vast agricultural lands have been derailed and degradedor lost through soil erosion.

Asa result of these policies not regarding the environmentconsequences, Georgia is now prone to a lot of pollution. Currently,there are no specific dumping places for wastes and the municipalwastes are being dumped everywhere in unmanaged landfills. InRustavi, air pollution is a key challenge since it is a place wheresteel industries are located including the chemical and metalindustries. There is also another challenge on the traffic jam whichcontributes immensely to air pollution. Moreover, the black sea andthe river of Kura are greatly polluted with industrial wastes. As aconsequence, this water pollution due to absence of treatments ofsewage water has led to the rise of digestive and breathing diseasesamong Georgians.

Asa result of current minimal economic development and low production,the has been significantly decreasing wastes but the challengeproblem still exist where there is no treatment facilities for theindustrial wastes and all the industrial wastes are dumped ordisposed everywhere without any control and treatment. The fertilesoil which used to very fertile has been affected by the fertilizersand pesticides uses since the soils have high toxicity levels. Thecurrent greatest threat on environment is the hazardous chemicalswhich has been deeply buried at the mountain of Lagliji at a depth ofabout 20 meters and has existed there since late 1970s. It isapproximated that its weight is approximately 2.5 tones. The countrydoesn’t have sources of energy and export its oil and gas fromRussia.

Environmentalconservation and protection was never a key issue in Georgia till themid 1980s but then controlling waste emissions policies had not comein place. Currently the economic problems of Georgia have preventedthe application of modern emission control technology. People arefaced with a lot of hardship and live low quality lives forcing themto over utilize the readily available natural resources especiallyfuel wood. Mountain and hill pastures and farms protection from soildegradation is an issue which needs to be addressed as a result ofunavailable economic resources. The government has made a lot ofinternational environment agreements concerning the biodiversity,ozone, climate change protection, air, ship pollution and wetlands.

Duringthe period, 2004 to 2011, Georgia has had drastic improvement ineconomy. After rose revolution, the economy has begun to grow as aresult of development of political and economic stability policies,which is aimed at enhancing authority or power, declining criminalactivities, corruption fight, initiation of competitive trade,lowering of taxes and privatization of assets. To construct acompetitive trade, Georgia had a lot of reforms in taxation system.Taxes decreased from 21 percent to 6 percent. The customs also wasreduced to 18 percent from 20percent. Profit tax declined to 15percent from 20 percent, dividend tax reduced to percent from 10percent. In this regard, Georgia was chosen as the fourth leastcountry with low tax by Forbes Magazine in 2008. It has preferentialtrade systems with partners like European Union, United State ofAmerica, Turkey and Commonwealth of the Independent States (CIS) (TheWorld Bank, par).

Itis performing best at the promotion of development of new enterpriselike development of infrastructure through networks of airports,railways and roads. In Georgia it is also easy to set up a business.It has launched a lot of reforms and has gotten successful outcomesand international recognition. In 2006, it was the top reformer amongthe members of Commonwealth of the Independent States (CIS). Regionbased on IFCC (International Finance Corporation and The World Bank.It is positioned at the 11thrank on the ease of doing business in the year 2010 by the WorldBank. Georgia was ranked at 60thout of 183 countries in 2010 by The Transparency InternationalCorruption Perception Index (CPI) unlike the 127thin 2003 (TheWorld Bank, par).

Accordingto the Heritage Foundation’s Index of Economic Freedom for 2010,Georgia moved to the 26 place in rating and had never reached thatfar since. It moved from being mostly un-free to being mostly free. On the data, most EU countries possess similar degree freedom ofeconomics. Thus, Georgia is positioned at 14th out of 43 countriesin terms of economic freedom (The World Bank, par).

Dueto implementation of reforms in the economic sector, the investmentopportunities have become attractive to foreign investors. From thetable below, the results of better reforms can be realized. The FDIand GDP increases every year and was highest in 2008 at $ 12.8billion. The GDP growth rate was at 5.9 percent in 2004 and moved to12.3 percent in the year 2007.

Table:MacroeconomicPicture of Georgia sourced from StatisticDepartment of Georgia















GDP Growth (Bill.






% 9.4


% 12.3




% – 3.9


% 6.4


Inflation Rates








Unemployment Rate








FDI (Mil.)









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