The proportion of defense expenditure to GDP is too high.
The production efficiency of state-owned enterprises is low.
The Soviet-style traditional planned economic policy lacks economic democratic supervision and microeconomic efficiency.
The gap between the rich and the poor has widened, and the level of education, health and food has declined.
In addition, the decline in oil prices after the second oil crisis led to the deterioration of the trade current account, which prompted many economic reforms after 1980 and stopped providing economic assistance to other producers including Cuba, East Germany and Eastern Europe. In addition, because the economic reform measures can't touch the idea of the * * * production party to run enterprises, all measures except layoffs are abandoned halfway. As a result, the number of unemployed people has greatly increased from 1980 to 1990, and the high unemployment rate has worsened social welfare expenditure, and the overall economy has fallen into a vicious circle.
More than ten years after the disintegration of the Soviet Union, the Russian Federation is still striving to establish a modern market economy and achieve strong economic growth. The executive and legislative bodies of the Russian Federation are also aware that the country's industrial base and further reform are facing serious problems, which led to the economic decline of the Russian Federation for five consecutive years after the disintegration of the Soviet Union. Despite this, the Russian economy has relatively quickly transformed from the world's largest centrally planned economy to a market economy. At the end of 2006, Russia completed eight years of growth, with an average annual growth rate of 6.7% since the 1998 financial crisis, although there was a high negative population growth during this period.
From 65438 to 0997, the economy of the Russian Federation recovered. 1998 the financial crisis led to the devaluation of the ruble in August of that year, the debt intensified and the people's living standards seriously declined. However, during the period from 1999 to 200 1, with the help of high oil prices and the weak ruble, the economy of the Russian Federation recovered again, with an average annual growth rate of 6%.
This recovery, coupled with the basic economic reforms carried out by the new government, has enhanced investors' confidence in the Russian Federation. However, the Russian Federation still relies heavily on the export of natural resources, especially oil, natural gas, metals and timber, accounting for 80% of total exports. At present, Russia has become the world's largest exporter of natural gas and the largest exporter of crude oil outside the Organization of Petroleum Exporting Countries.
At the end of 2005, Russian gross national product increased from157 billion US dollars in 1999 to about 750 billion US dollars, and gold foreign exchange reserves increased from less than 1000 billion US dollars at the end of 1998 to182.2 billion US dollars. By the end of 2006, it had exceeded the savings threshold of $280 billion, making it one of the countries with the largest foreign exchange savings in the world.