YOUR TASK: READ MY WORK AND MAKE ME A DETAILED OVERALL CONCLUSION An Analysis of the Economic Impact of Key Global Issues in Russia

Russia, the largest country in the world in terms of land size, has a history that is both rich and intricate, and it continues to influence its present economic situation. The disintegration of the Soviet Union in 1991 was a significant turning point, shifting from a centrally controlled economy to a market-oriented structure. This transition posed substantial difficulties and possibilities, as Russia underwent phases of substantial economic expansion followed by periods of contraction.

This essay aims to examine the present economic state of Russia, with a particular emphasis on significant topics and themes that significantly influence its progress. For historical context:

- The shift to a market economy has led to substantial disparities in income, causing a portion of the population to experience poverty.

- Russia encounters obstacles in enhancing productivity and cultivating its human capital, both of which are pivotal elements for sustained economic success.

- The finance industry is crucial in gathering resources for investment, including foreign direct investment (FDI), through financialization. This investigation will examine the degree of financialization and the appeal of Russia for foreign direct investment. Russia's economic well-being is heavily influenced by its trading relationships with other countries, especially recent sanctions, which affect its trade policy.

Table 0:table of summary economic data for Russia

Indicator	Value
Gross Domestic Product (GDP) (PPP)	$4.5 trillion
GDP per Capita (PPP)	$31,430
Unemployment Rate	4.10%
Poverty Rate (National Definition)	13.50%
Inflation Rate	8.40%
Balance of Trade	$232.2 billion

The data presented in Table 0 provides a comprehensive understanding of the characteristics of the Russian economy. Although Russia has a substantial Gross Domestic Product (PPP) of $4.5 trillion, as reported by the World Bank, indicating a sizable and productive economy, a more nuanced perspective emerges when we examine the GDP per capita (PPP) of $31,430. This suggests a lower level of living standards in comparison to numerous wealthy countries.

The World Bank's study indicates a national poverty rate of 13.5%, which continues to be a cause for worry. It is crucial to recognize that national definitions of poverty might differ, and the actual magnitude of poverty in Russia may be greater. Based on 2020 statistics from the World Bank, the Gini coefficient of 37.5 indicates a somewhat unequal distribution of wealth in Russia. The Gini coefficient is a measure of income inequality. Although not the most severe instance, it emphasizes a discrepancy in income levels that requires attention.

However, the unemployment rate of 4.1% reported by Trading Economics suggests that the labour market is in good condition. According to the World Bank, Russia has a trade balance of $232.2 billion, which is also rather robust. The country's positive balance is mostly driven by its exports of oil and gas, which serve as a substantial source of cash.

Nevertheless, it is crucial to consider these indications considering recent events and persistent concerns. The economic expansion experienced in the late 1990s, which was driven by the significant increase in energy costs, is not certain to continue. The Russian economy is susceptible to price swings and the possibility of a worldwide transition to renewable energy sources due to its reliance on exporting resources.

The economic situation has become more intricate because of the international sanctions imposed following the annexation of Crimea and the war in Ukraine. The imposition of sanctions has caused significant disruptions to Russia's commercial flows, hence increasing the challenges associated with importing crucial commodities and technologies. In addition, they have actively discouraged foreign investment, which is a vital element for the advancement and broadening of the economy.

Poverty and Inequality

Two of the most pressing issues in a macroeconomic perspective, let alone Russia, are poverty and inequality. Despite its abundant natural resources and economic potential, Russia continues to face numerous problems concerning poverty and income inequality. Therefore, understanding the nature and drivers of these two issues is paramount for evaluating Russia's economic development and social identity. Poverty: The creation of a market-oriented system in the mid-1990s signified a drastic transition from a centrally planned economy in the Soviet period to a more economically liberalised one.

To effectively discuss poverty and inequality in Russia, we must first consider the appropriateness of the current poverty measures for the country. Poverty measures encompass various dimensions, including absolute and relative poverty, poverty rates, and the poverty gap. These measures are vital for understanding the extent and depth of poverty within a society. In the context of Russia, it's essential to analyse these measures alongside economic theory and policy to gain insights into the factors driving poverty trends.

Russia's poverty rate is difficult to measure The measurement of poverty in Russia is fraught with difficulties. First off, in terms of purchasing power parity (PPP), the official poverty level is set extremely low, at about 55.50 per day. This implies that, in Russia, a person may still be considered impoverished even if they earn enough to cover their essential expenses for clothing, food, and housing. Yet this may not accurately represent the cost of living, particularly in large cities like 5t. Petersburg and Moscow. Second, the wealthiest and poorest segments of the population might not be fully represented in household surveys, which are the primary source of information on poverty in Russia. This may cause estimates of the depth and severity of poverty in Russia to be underestimated. The significance of inequality in Russia There are several detrimental effects that income disparity may have on Russia. How to do it is as follows: \fHuman Capital and Productivity: Human capital refers to the economic value of a worker's experience and skills. This includes educational attainment, health, and other attributes contributing to productivity. Investing in human capital, through education and health, not only enhances an individual's quality of life but also boosts their productivity and potential for economic contribution.The Role of Health in Economic Productivity Health is a critical component of human capital. Improved health conditions lead to longer working lives and higher productivity due to reduced sickness-related work absences. Health improvements are directly linked to economic outputs, as healthier populations can sustain longer hours and more physically demanding tasks. Russia boasts eighteen federal special economic zones (SEZs) alongside various regional initiatives. Enacted on July 22, 2005Relationship Between Financial Development and Economic Growth: -A robust financial system promotes economic growth by ensuring efficient resource allocation, enhancing productivity, and supporting Financial Systems Measurement Depth: Represents the size and liquidity of financial markets. Access: The availability of financial services to meet the needs of individuals and businesses. Efficiency: How well financial intermediaries provide financial services. Stability: The ability of the financial system to withstand shocks \fKOF Globalisation Index De jure measures: Legal frameworks affecting international economic exchange.Eclectic Paradigm: Proposes that firms need to have ownership, localisation, and internalisation advantages to engage in FDI. Global Trade, GATT, and the WTO The General Agreement on Tariffs and Trade (GATT) was a multilateral trade agreement established after World War II to promote free trade by reducing tariffs and other trade barriers. The World Trade Organization (WTO) succeeded GATT in 1995, building upon its principles and expanding its scope to cover new areas like intellectual property and services trade. Both GATT and the WTO are based on key principles: GATT/WTO Dispute Settlement The WTO provides a mechanism for resolving trade disputes between member countries. A country {complainant) can challenge another country's (defendant) trade practices if they believe they violate WTO agreements. If the WTO panel rules in favour of the complainant, the defendant must bring its practices into compliance