Russian economy
             Since the fall of communism in the former Soviet Union in 1991, Russia is still struggling to establish a modern market economy, modernize its industrial base, and maintain strong economic growth. Russian GDP has contracted an estimated 45% since 1991, despite the country's wealth of natural resources, its well-educated population, and its diverse - although increasingly rundown - industrial base. Russia achieved a slight recovery in 1997, but the government's budget deficits and the country's poor business climate made it vulnerable when the global financial crisis swept through in 1998. The crisis culminated in the depreciation of the ruble; a debt default by the government, and a sharp deterioration in living standards for most of the population. Overall, the period 1992-1998 was marked by a poor business climate and failure to institute modern market reforms. The economy rebounded and conditions improved markedly in 1999-2002, with annual output growing by an average 6%, encouraged by the competitive boost from the weak ruble and a surging trade surplus fuelled by rising world oil prices. This recovery, along with a renewed government effort in 2000 to advance lagging structural reforms, have raised business and investor confidence over Russia's prospects in its second decade of transition.
             Yet serious problems persist. Russia remains heavily dependent on exports of commodities, particularly oil, natural gas, metals, and timber, which account for over 80% of exports, leaving the country vulnerable to swings in world prices. Russia's agricultural sector remains plagued by uncertainty over land ownership rights, which has discouraged needed investment and restructuring. Their industrial base is increasingly rundown and must be replaced or modernized if the country is to maintain strong economic growth. Severe fiscal problems have develop...