The Economical Comparison of Two Countries in Terms of Russia and China

Content

1 Introduction

The relevance of the research topic. “The economical comparison of two countries in terms of Russia and China” due to the special role occupied by these countries in the global space.

China is the largest population empire, a global leader in the industry, electric-power industry, construction, agricultural industry, on international reserves and the world's largest exporter of goods. Russia is the largest country by area and by export of fuel and energy resources.

It’s important to note that China is almost realized as an economical and military superpower, who should only to admit and confirm it in its stable political influence. But Russia, which still continues to act on the world stage as a potential superpowerhas undergone economical major changes since the Soviet Union collapse, but these changes can be evaluated not only positively. If we estimate China, it’s necessary to give an explanation for GDP rates of growth, which are from year to year make no less than 9-10 % per annum over a period of thirty years. With regard to this, China is a modern champion: there is no country on today’s statistic that for 20-30 years reached anaverage weightedrate of the real growth over 10 %. There is an example of successful economy in this context.

It should be noted, that China is not a single country of such a region.There are enough countries in Asia-Pacific Region, which almost reached the same successes, the same rates of growth during a period of 20-30 years.

The most prime example is Japan, where the annual rates of growth made 8.5 % since 50th till 75th years. Korea has also 8.5%; Taiwan has 9.1% - sincethe 60thyear. It should be remembered about Singapore, Hong Kong, Thailand, Malaysia - all of them during the three decades are close to 9% real GDP growth.

So, on the one hand, China - is a good example, and on the other - it is just the latest example of the Asian high growth rates. What accounts for such a dynamics? The answer to this question is a simple formulation - the "China model" of development.

Determining of key growth factors and the economical reforming character. In order to answer these questions at first it is necessary to determine what is the economical growth of China in a stage manner, to give a brief description of People's Republic of China economical success over the past 30 years since the beginning of reforming.

Secondly, to analyze exiting today’s theories, giving the evaluation of growth reason. To determine the most full characterized and based on it hypothesis, to conduct the analysis of main reforms, accepted in China since the beginning of 1978th. In the third place to determine and to show the main growth factors.

By combining the results of the analysis we become an answer to a question what is the “Chinese” economical development model.

And in conclusion it will be considered negative sides of forcing rates of economical growth. The main are socio- economic and environmental problems. The last one is the most dangerous in the case of China. The ecosystem dysfunction and cardinal deterioration of living conditions of population may cause to the destabilization of political atmospherein People's Republic of China and loss of public confidence to the government.

For the last thirty years Russia has uneven development, following from the global closed economy, centrally planned economy to the market global integrated economical system.

 In the course of economical reforms in the 1990th the majority of industrial enterprises were privatized.

In the meanwhile the property right protection of Russia is still weak and the private sector is exposed to significant interference from the state. This is a strong negative factor holding an economical growth of Russia.

After the collapse of the USSR the first minor growth in Russia was only in 1997. However,the Asian financial crisis has begun in 1997, which had a negative impact on Russian economy.This is largely responsible for that the government of Russia couldn’t provide full payment of debt in 1998,and then there was a slump of prices of rubles highly reduced law level of average citizens.

Therefore the 1998 year has remained in the history as the year of crisis and large capital exports.

Then came a sustainable economic growth era for the country, which was primary possible because of high prices of oil. This dependence on exports of raw materials lays Russia open from world economic crisis and very changeable world market prices on primary goods. The revenues from exports of raw materials traditionally make a solid part of country’s budget.

The Russian today’s manufactory industry is divided between manufacturers of globally competitive goods – in 2015 Russia was the largest exporter of natural gas, the second largest oil exporter and the third largest exporter of steel, primary aluminum and other less competitive branches that are focused only on internal market.  

Another part of the budget is arms export sales. The share of Russia in the world market of weapons is 23 % and come short only of the United States share (32 %). Russia has a military-technical cooperation with more than 80 countries worldwide and makes designed for military usedelivery for 62 countries.