In the mid-1980s while the world was gripped by the back and forth struggle that was the Cold War, very few people could have believed that within just 15 years Russia and the Soviet Union would go from being a superpower that rivaled the United States, to becoming a government that had very little influence on the world’s economic and political scene. In the same vein, many people have been taken by surprise by the recent resurgence in both economic and political power wielded by Russia. The obvious question that is constantly on the mind of economist, and politicians is what does the future hold for Russia and its influence on the world scene?
One thing can be said for certain, as long as the world relies on oil, coal, and other such fuels as a source for energy, Russia will always have at least some influence on other nations on the planet. In fact Russia’s recent resurgence as an economical power is due in part to the fact that it has been able to supply the world with commodities and raw materials.
Still when it comes to investing in Russia, many banks and investors are still leery, and do not have complete confidence in Russia’s ability to serve as a stable place for their investments. Corruption and other illegal activities are still a major part of the Russian society, and until the government steps in and puts stringent financial policies in place it is unlikely that problems with corruption will be fixed.
Lack of proper infrastructure, is also hampering economical growth in Russia. Russia like any other country around the world relies heavily on tax revenue to build and improve its infrastructure. Unfortunately lack of trust in the current tax structure has made it so that many individuals do not pay taxes, and therefore Russia’s not able to improve its infrastructure in a way that would promote future growth. Obvious changes would need to be made to Russia’s tax structure in order to encourage its populace to do with their civic duty and pay their taxes.
So when it comes to the future of Russia, the jury is still out. There definitely exist potential for both financial and political growth. However this growth will be dependent on decisions that the Russian government makes in the near and distant future.