Why is resource management a problem for russia

See Answer. Best Answer. Study guides. Q: Why has resource management been a problem for leaders in Russia and the Republics? Write your answer Related questions. What is the Meaning of counseling in human resource management? What is the difference between vertical and horizontal fit in line with Strategic human resource management? Where can one find online advice about management of change within an organization? Two problems that afflicted Russia and the other new republics since the breakup of the Soviet Union?

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Find more answers. It is unclear who is accountable within these organisations, with many suspecting their use to fund activities those in power would prefer not to appear on the budget Tompson, The continued state control of the resources sectors will continue to have a detrimental effect on democratic and positive political development in Russia, as well as many negative economic ramifications. One of the problems facing resource rich countries and threatening poor economic performance is not necessarily the presence of abundant natural resources, but instead the structures of control and ownership that these nations often choose to govern their resource sectors Ahrend, It is commonly agreed that private enterprises are more efficient than state owned operations, and this contrast can be clearly seen in Russia between the largely state owned gas sector under Gazprom and, until , the almost entirely privately owned oil companies Anon.

However, manufacturing industries were not subject to the same constraints due to the large proportion of privately owned companies. It is clear from this that most state enterprises were under-achievers and subject to the often politically motivated goals of the government.

The privatisation of the oil industry is one example of how Russia was in a better position than most other resource dependant emerging markets, but it is also clear that the country is not without state management and has the potential to forsake productivity in favour of state control. Nevertheless, it is unlikely that any such future mishandling will have any feasible future benefits, with the continuation of such policies probably resulting in economic stagnation, resource dependency and an inability to develop a fully accountable political system.

It is very difficult to use the conventional explanations to understand the impact that natural resource abundance has had on both the Russian political system and economy. Secondly, the legacy of communism in Russia meant that there was a significant industrial base, infrastructure and bureaucracy within the country, thus removing one of the most significant obstacles hindering the development of resource dependant nations starting from scratch.

Ahrend, R. Eurasian Geography and Economics, 46 8 , pp. Going Dutch? Business Easter Europe , 17 July, pp. Dobrynskaya, V. CEPII, pp. Economic Diversification and the Dutch Disease in Russia. Post-Commuist Economies, 22 3 , pp. Gianella, C. A Golden Rule for Russia? How a Rule based Fiscal Policy can allow a smooth adjustment to the new terms of trade.

Organisation for Economic Co-operation and Development, pp. Oomes, N. IMF Working Paper, pp. Powell, B. Time International Canada Edition , 12 , p. Tompson, W.

A Frozen Venezuela? In: M. Ellman, ed. London: Anthem, pp. Richard Connolly Date written: January Before you download your free e-book, please consider donating to support open access publishing.

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This content was originally written for an undergraduate or Master's program. It is published as part of our mission to showcase peer-leading papers written by students during their studies. Works Cited Ahrend, R.