(Economy)
Russia is the strongest economy in the former Soviet Union and an economic power in the current world. In terms of total industrial and agricultural output, it accounts for 70% of the former Soviet Union's total industrial and agricultural output. Compared with the average level of the former Soviet Union (%), in 1990 per capita GNP was 114%, per capita consumption was 108%, per capita national wealth was 117%, industrial labor productivity was 110%, and agricultural labor productivity was 108%. 1990 GNP accounted for 58.7% of the former Soviet Union's GNP.
[Industry]
Russia has formed a complete industrial system centered on nine major industrial sectors (energy, ferrous metallurgy, chemicals and petrochemicals, machine building and metal processing, wood processing and paper making, construction and materials, light industry, food and microbiology). Whether from the base case of economic strength, or from the industrial, scientific and technological regional layout to examine, Russia occupies the absolute advantage of the former Soviet Union industry.
Moscow as the center of the Central District concentrated in the former Soviet Union textile industry more than 1/2, machinery industry 1/5. St. Petersburg as the center of the Northwest District is an important processing industrial zone in the former Soviet Union, precision machinery manufacturing, electromechanical, chemical and non-ferrous metallurgy and other sectors are more developed. The northern region of timber harvesting, sawmill timber, economic timber shipments and pulp and paper industry ranked first in the former Soviet Union. The coal mining industry in the Urals ranked second in the former Soviet Union.
Russia's main industrial products, there is the former Soviet economy also occupies a decisive position. Major products accounted for the proportion of similar products in the former Soviet Union, respectively: power generation accounted for 62.5%, oil accounted for 90.9%, cement accounted for 60.2%, natural gas accounted for 77.3%, coal accounted for 55.4%, steel accounted for 57.9%, commercial lumber accounted for 91.6%, paper accounted for 84.6%, glass accounted for 61.9%, machine tools accounted for 50%, automobiles accounted for 80%, 45% of the tractor. Energy Electricity Electricity, which generated 1,066 billion kWh in 1988, was 1,046 billion kWh in 1991. Coal, 425 million tons in 1988 and 353 million tons in 1991. Oil, 569 million tons in 1988, an all-time high, was
515 million tons in 1990, decreasing to 460 million tons in 1991. Steel Steel production was 63.877 million tons in 1988 and 55.1 million tons in 1991, and three of the five largest steel bases in the former Soviet Union, the Urals, the Central Region, and Western Siberia, are located in Russia. production of most consumer goods in 1991 was down 2 to 6 percent from 1990, and food production was down 9 percent.
Russia before the October Revolution, industry was very underdeveloped, in the total value of industrial and agricultural output, industry accounted for only 1/3, and the structure of the industrial sector is dominated by light industry, whose output value accounted for about 2/3 of the total value of industrial output. Originally very backward Russian industry, due to the destruction of the First World War and the post-October Revolution foreign armed intervention and the civil war, so that the industry is on the verge of collapse. After the end of the civil war, on the basis of the recovery of the national economy, the former Soviet Union adopted a resolution on the realization of national socialist industrialization. The resolution clearly stipulated that the basis of the general line of industrialization was to begin with heavy industry and the development of the core of heavy industry, i.e., machine-building, which in effect favoured category A industry, i.e., the production of the means of production. At present, Russia has become an industrial power with a highly developed mechanized agriculture. This is the result of the socialist industrialization carried out over several decades in the former Soviet Union. At present, industry plays an important role in the Russian economy. Russian industry is characterized by the fact that the development of heavy industry has always taken precedence, while with the development of the social division of labour and the progress of science and technology, many new industrial sectors have gradually emerged. The high degree of concentration of industrial production is the result of Russia's productivity layout policy. Russia's industrial sector is very carefully divided, now **** there are 12 industries and their subordinate more than 300 different sectors and a considerable number of individual production sectors.
The 12 sectors are:
Electric power industry;
Fuel industry (including: oil, gas and coal industry);
Ferrous metallurgy industry;
Nonferrous metallurgy industry;
Chemical and petrochemical industry;
Microbial and compound feed industry;
Pharmaceutical and medical equipment industry;
machine manufacturing and metal processing industry
(including: power and machinery manufacturing, instrument and meter manufacturing,
metallurgical equipment manufacturing, machine tool manufacturing, chemical and petroleum machinery
machinery manufacturing, construction machinery and road building machinery manufacturing, locomotive
vehicle manufacturing, automobile manufacturing, shipbuilding, aviation industry,
bearing manufacturing, tractor manufacturing, agricultural machinery manufacturing);
forestry, wood processing industry, pulp and paper industry;
building materials industry;
light industry (including: textile industry, sewing industry, shoe industry);
food industry.
In industrial production, Russia plans and organizes the development of the above industrial sectors into several complexes. These complexes are: the fuel-power complex, the metallurgical complex, the machine-building complex, the chemical-forestry complex, the construction complex, the social complex, and the regional production complexes in the east. Here it is important to emphasize the industries of eastern Russia. The East, which includes Siberia and the Far East, covers an area of 12,760,590,000 square kilometers, or more than two-thirds of Russia's area. In recent years the East has been gaining in importance. Russia is a federation straddling the Eurasian continent, and the level of economic development of the eastern and western parts of the country varies greatly. The European part of the country has a strong industrial base and a full range of sectors, accounting for more than 3/4 of Russia's output. However, the European part has limited resources, and its further economic development is greatly restricted. The eastern part of the country, on the other hand, is rich in a variety of natural resources, but it has a weak industrial base and a single sector, and its resources are far from being fully utilized. In order to change this irrational layout of productive forces, Russia has implemented a policy of industrial relocation to the east, which is called the "programmatic policy". At present, the Russian economy is increasingly dependent on the eastern regions. In the future, the eastern part of the country will play an important role in strengthening its economic and military power and securing its exports. Especially in the next century, which will be the "Asia-Pacific era," Russia will pay more attention to the development of its East.
Russia's power industry consists of three major sectors: thermal, hydro and nuclear power generation. The amount of electricity generated is second only to the United States. Thermal power generation is dominant, accounting for about 72%. Most of Russia's abundant power resources are concentrated in the eastern region. After entering the 1970s, due to the growing scarcity of organic fuel in parts of Europe, Russia decided to accelerate the development of the nuclear power industry in the region. At present, Russia has eight nuclear power plants (1985). The outstanding feature of Russian electricity production is its high degree of centralization, with the vast majority of electricity being produced by large power stations. At present, Russia has formed a unified national power transmission system, which generates 90% of the country's total power output and ensures the power supply of the major industrial areas. The main consumer of Russian electricity is industry, whose electricity consumption accounts for 60% of the national electricity consumption. Russian electricity is also used for export, which is now drastically reduced due to the dissolution of the EEC.
Russia's fuel industry consists mainly of the oil, gas and coal industries. At present, Russia is the only industrialized country in the world that is completely self-sufficient in fuel and can maintain some exports.
The oil industry is the most important energy industry sector in Russia. The natural gas industry is a new and rapidly developing energy sector in Russia. The production of coal has always played an important role in the energy production industry and it is the basis of the fuel balance. The chemical and petrochemical industry was the weakest link in the Russian industrial sector before the October Revolution. It was only when it was recognized that the chemical industry was the most important sector for securing the material basis of industry and one of the decisive factors in advancing the industrialization of the national economy that urgent measures were taken to establish and develop this sector in Russia. After decades of development, the Russian chemical industry has improved significantly. Russia's output of fertilizers, sulfuric acid, and roasted soda is among the highest in the world. since the 1980s, the chemical-pharmaceutical, basic chemical, and chemical-fiber industries have been the fastest-growing sectors of the chemical industry, and the petrochemical industry has been the fastest-growing sector of the industry for basic organic synthetic products. At present, Russia produces more than 90,000 kinds of chemical products, of which more than 90% are not the most advanced production technology and their quality is not as good as that of foreign products. For this reason, Russia has begun to further expand the production of new structural materials, increase the variety and improve the quality. However, in recent years, due to the political turmoil, a sharp economic recession, the energy and raw materials industry shrinking, the chemical industry output also fell sharply.
Machine manufacturing and metal processing industry is Russia's industrial core, the basis of scientific and technological progress. Their development has been greatly emphasized, and the speed of development is also very rapid. Russia before the October Revolution, machine building and metal processing industry only three independent sectors: rolling stock manufacturing, shipbuilding and agricultural machinery manufacturing. Now this sector has grown to more than 100 subsectors in Russia. Its products have exceeded 130,000 varieties. The direction of development of the machine-building industry is: rapid development of subsectors that can ensure technological progress and increase the level of mechanization and automation of production; a significant increase in the number of automated tools, meters and instruments; priority in the growth of metal-working equipment in the form of advanced forging and stamping equipment, data-controlled machine tools, speed-control and speed-computing sets.
Construction materials industry The construction materials industry is one of Russia's traditional industrial sectors, which had a certain production base before the October Revolution. The main sectors are cement, precast concrete and glass products industry. Seventy percent of the Russian construction materials industry is concentrated in the European part of the country. The basic direction of the development of the construction materials industry in Russia is to give priority to the development of construction materials that can reduce the amount of metal, lower the cost and amount of labor, reduce the weight of the building, and increase the degree of warmth; to expand the production of high grade, multi-component and special sludge; to increase the production of polished glass, reinforced glass and fiberglass fabrics, as well as architectural ceramics and other highly efficient decorative materials. Further research and development of new products and pay attention to improve the quality of their traditional products.
Light industry is one of the most important traditional industrial sectors in Russia. Before the October Revolution, Russia's light industry had already begun to take shape. The main sectors of light industry are textile industry, shoe industry, knitting industry and so on. Russia's light industry is mainly concentrated in some densely populated areas in Europe. Due to the former Soviet Union for a long time one-sided implementation of the policy of prioritizing the development of heavy industry, a serious constraint on the development of light industry. Russia's light textile industry equipment backward, long-term production quality is poor, the product style is outdated. In order to change these phenomena, the former Soviet Union and the new Russian government have tried to accelerate the development of light industry. However, the entire national economic system for decades has been heavy work, light work, it is difficult to reverse. Coupled with the economic recession in recent years, light industrial production tends to decline.
The food industry plays an important role in Russian industry. Food industry consists of 24 subsectors. The main sectors are meat and canned food processing industry, milk and dairy products industry, fishing industry, sugar industry, beverage and pasta products industry. Meat industry is the largest subsector in this sector, and its output value accounts for about 1/4 of the total output value of the food industry; most of the large-scale meat products joint ventures are built in large and medium-sized cities. In recent years, due to the overall economic recession, the meat industry output has also declined significantly. In addition in recent years, pasta products have also declined significantly. For a long time, due to the lack of investment in the food industry, coupled with the instability of agricultural production, the development of the food industry has been relatively slow. Because, the market supply long-term tension can not be improved in the short term.
[Agriculture]
Since the 1960s, intensive management has been carried out, mainly in the form of mechanization, electrification, chemicalization, hydraulization, scientification and intellectualization, thus gradually changing the previous crude economic methods and raising the level of agricultural production.
The main items in Russian agriculture, such as cereals, potatoes, flax, meat and milk products, accounted for 1/2 to 1/3 of the former Soviet Union. in recent years, the speed of the level of development of agricultural production has been affected by the turbulent situation. the total value of the products of the agro-industrial complex in 1991, including the total value of agricultural output, decreased by 5 percent compared with 1990, and was lower than the average value of the last five years. in 1991, the country's cereals State grain purchases amounted to 22.5 million tons in 1991, 34 percent lower than in 1990 and the lowest in the last 25 years.State sunflower purchases in 1991 amounted to 1.7 million tons, 25 percent less than in 1990.State potato purchases amounted to 4.7 million tons, 25 percent less than in 1990. State purchases of potatoes amounted to 4.7 million tons, 6 percent less than in 1990, and state purchases of vegetables amounted to 4.4 million tons, 28 percent less than in 1990.In 1991, the volume of oilseeds sold to the state was the lowest in the last six years, and the volume of potatoes and vegetables sold was the lowest in the last 18 years. But the state had requisitioned 123 million tons of grain in October 1992, an increase of 1.5 million tons over last year, with grain production at 2.5 million tons, an increase of 500,000 tons over last year, and potato production basically the same as last year.
Russia before the October Revolution was a backward agricultural country. The annual agricultural population accounted for 82 percent of the country's total population. Agricultural output value accounted for 57% of the total value of industry and agriculture. After the October Revolution, the former Soviet Union experienced a tortuous path of agricultural development.
Before the 1950s, the former Soviet Union, the full development of heavy industry, coupled with the domestic war, the Patriotic War and the overall collectivization of agriculture policy blunders, the slow development of agricultural production. from the mid-1950s, agriculture began to be valued, and the old agricultural institutions and policies have been adjusted and reformed to a certain extent. the 1960s, the beginning of the shift from the crude operation to intensive management, expanding investment in agriculture, and promoting the development of agriculture. Agricultural development was promoted. However, from the 1970s to the early 1980s, agricultural production was almost at a standstill. After Gorbachev came to power, he implemented such measures as expanding the autonomy of farms and farms, improving rural economic relations, adopting a variety of contracting and leasing systems, changing the orientation of agricultural investment, and strengthening infrastructure and the social transformation of agriculture, in an attempt to tap the potential for the development of agriculture, increase the motivation of farmers to produce, and try to solve the problem of the food supply in the short term.
But, in recent years, due to the chaos of the entire national economy, from the late Soviet Union, agriculture is in a state of slippage. 1990 onwards, the negative growth of agricultural output. 1991, Russia's agricultural output fell by 5%; to 1992, the decline in agricultural output faster, down by 12%, livestock products fell even more, such as the first nine months of meat production fell by 27%.
Cultivation
Russia's cultivation industry consists mainly of cereal crops, cash crops (cotton, sugar beet, sunflower, flax, etc.), as well as potatoes, vegetables, melons, fruits, and fodder crops, and other production sectors.
Before the October Revolution, Russia's plantation industry was dominated by cereals, which accounted for 90 percent of all sown area. From 1909 to 1913, the average annual production of cereals was 72.5 million tons, of which 15 percent was exported annually.
After the October Revolution, the plantation industry suffered from the destruction of the civil and patriotic wars and the movement of collectivization of agriculture, and the development of production was slow. since the 1950s, the plantation industry has developed considerably, and its internal structure has also been adjusted. In 1950, cereals accounted for 70% of the total sown area, cash crops for 8.1%, potatoes, vegetables and fruits for 7.4%, and fodder crops for 14.5%. 1988, cereals accounted for 54% of the total sown area, cash crops for 6.4%, potatoes, vegetables and fruits for 4%, and fodder crops for 34.6%. 1988, compared with 1950, the area sown with cereals was 54%, while the area sown with cash crops for 6.4%, potatoes, vegetables and fruits for 4%, and fodder crops for 34.6%. In 1988, compared with 1950, the proportion of sown area under cereals has declined, while the proportion of fodder crops has increased significantly.
1. Cereal crops
In the mid-1950s, due to large-scale land reclamation, the rapid expansion of cereal sown area, cereal production increased significantly. In the early 1960s, due to serious failures in agricultural policy and reclaimed areas of the ecological balance has been destroyed, the slow growth of cereal production. the mid-1960s, Russia's agricultural production began to shift from the rough management to intensive management, increased fertilizer, cultivate good varieties, soil improvement and water conservancy and other measures, cereal production has increased, the average yield of cereals in 1976-1980 than the first half of the 1960s to 56%. 56%, and the unit yield of cereals increased by 54.9% during the same period. From 1981 to the late 1980s, cereal yields continued to decline due to droughts and problems in the management mechanism.
Decades, despite the substantial growth in grain production, but due to the rising consumption of feed grains, Russia needs to import large quantities of grain each year. In recent years, the demand for grain imports has been increasing by the day.
Wheat plays an important role in the area sown to cereals, and it leads the cereals in terms of production and state purchases. Wheat accounts for 40% of the total sown area, 39% of the total production and 48% of the total state purchases. In the sown area of wheat, spring wheat accounts for 2/3, but the yield is low; winter wheat yield is much higher than spring wheat. Barley is second only to wheat in terms of sown area and yield. Sown area accounted for 26% of the cereal sown area, the total output accounted for 27.1 percent of the total cereal production.
Oats are sown on 40 percent less land than in the 1940s, but their yields are higher than those of barley and spring wheat, and they are suitable for fodder. The sown area accounted for about 10 percent of the total cereal area.
The area sown to rye has been shrinking as a result of the lower yields and lack of higher production values.
In addition, rice is grown in the Russian Far East. Also produce sorghum, raising wheat, etc., but the planting area is not large, and the yield is not much, does not occupy an important position.
2. Cash Crops
The main cash crops in Russia are cotton, sugar beet, flax and sunflower.
After the October Revolution, the government adopted a series of favorable policies such as increasing investment and raising purchase prices in order to develop cash crops. As a result, the area sown to cash crops has been rising.
Cotton production developed rapidly after the October Revolution. The sown area kept expanding and the output increased one and a half times.
Linen is one of Russia's traditional textile raw materials. Its planting area has been reduced, mainly because of its harvesting and processing of the low degree of mechanization, labor, and flax cultivation is mainly distributed in the labor force is very lack of central black soil area. Flax single yield is also lower.
Sunflower seeds are Russia's most important oilseed crops, its sown area of about 3/4 of the sown area of all oilseed crops, production accounted for about 80%. Chu this addition, oil crops are flaxseed, cottonseed, soybean, rapeseed, hemp seed. But the yield are not too much.
3. on beans, vegetables and fruits crops
Potatoes are one of the basic food for the Russian population. But the production of potatoes is decreasing. The main reason is that a part of the potato producers are individual sideline producers, whose potato production declines as the number of rural residents decreases and their lifestyles change. Secondly, the low degree of mechanization of planting potatoes.
After the war, the area under vegetable cultivation, has remained unchanged, of which about 2 / 3 is watered land. Annual per capita consumption in Russia is 100 kilograms.
Melon crops are grown mainly watermelons, melons and pumpkins. Fruits and berries are prevalent in Russia. In order to increase fruit production, large orchards have been established in Russia. Currently, rural residents are encouraged to develop orchard cooperatives, and agrarian farms assist cooperatives in building infrastructure and providing agricultural technology and services in all areas.
Livestock husbandry
The main sectors included in Russia's livestock husbandry are: cattle farming, pig farming, sheep farming, and poultry farming. In addition, it also includes small-scale individual sectors, such as horse breeding and sericulture. The current output value of animal husbandry accounts for 55% of the total agricultural output value, and with the improvement of people's living standards and changes in dietary structure, the significance of animal husbandry will grow.
Before the October Revolution, Russia's livestock industry was backward in its mode of operation, and the output of livestock products was not high. At the beginning of the victory of the October Revolution, the production of agricultural and livestock products decreased, and by the end of the 20's, it was already more than 1913, however, during the period of total collectivization of agriculture, due to a serious policy failure, so that the livestock industry suffered major losses. Coupled with the great trauma of World War II, livestock production had not yet recovered to the 1913 level until after 1950.
After the mid-1950s, Russia took measures to increase investment, accelerate the development of specialization and centralization, increase the purchase price of livestock products, expand the quality spread and strengthen scientific research, the use of scientific breeding process, strengthen the feed base, and other measures to greatly promote the development of animal husbandry.
In recent years, with the all-Russian economic recession, the investment crisis, inflation and a series of problems caused the livestock industry greatly stagnated. In the first nine months of 1992, the production of livestock products fell by 21 percent.
1. Cattle breeding
This is the largest livestock sector in Russia. Currently this sector provides 98% of milk and more than 40% of meat. It also provides high-quality raw materials for leather.
Eighty percent of the cattle reared in Russia are raised by farms farms, inter-unit organizations or other agricultural production enterprises: another 20 percent are raised by individual sidelines.
In the late 1980s, the level of specialization and centralization in the dairy industry increased, and in some places there appeared inter-unit complexes of the dairy industry or joint companies of cattle raising, which are divided into specialized enterprises of breeding, fostering, rearing and milk production, processing and feeding in order to increase the efficiency of production.
2. Pig farming
This is the second largest livestock sector in Russia. Based on the standard number of heads, pig farming accounts for about 15 percent of the total number of heads of livestock. Pig farming provides meat, leather, bristles and other light raw materials.
In recent years, the pig industry has carried out technological transformation, and gradually established many industrial-type large pig farms. Internally divided into specialized breeding, fattening enterprises and other large enterprises with a complete process, in addition, there are pig farms specializing in breeding and breeding of good breeding stock, responsible for the provision of good breeding stock.
3. Sheep industry
This is also a large sector of animal husbandry. Sheep and goats account for 14% of the total livestock by standardization. The sector mainly provides meat, milk, tallow, wool, sheepskin, etc. Due to the low price of sheep farming products, it is in low profitability. Therefore, the development of sheep farming is slow.
4. Poultry farming
This is a growing livestock sector in Russia. Poultry farming provides meat and eggs of high nutritional value as well as down and feathers.
At present, the main suppliers of products from poultry farming in Russia are collective farms and state farms, which provide much more than the secondary sector. This has changed the situation before the 1960s, when poultry products were supplied mainly by individual sidelines. This is the result of Russia's vigorous development of mechanized poultry farms and the realization of the integrated mechanization of poultry-rearing processes.
The structure of the livestock sector has changed considerably in the last 20 years. Among them, the poultry industry is developing the fastest due to technological modifications and the adoption of factory rearing methods. The meat cattle industry is also developing faster, while the dairy industry is also developing slower due to the low degree of factoryization. In the pig industry, the direction of meat and cured meat with greater development, the products in this area, the population demand is very large.
From the structure of the total meat balance sheet, the share of pork and mutton decreased, and the share of beef and poultry meat increased. This is mainly due to the increase in the overall level of economic development, the growth of product consumption and the improvement of the food structure.
The most important condition for the development of animal husbandry is the establishment of a reliable fodder base, which has a direct impact on increasing the number of head of grazing animals and improving their productivity, as well as on increasing the output of products and reducing costs. Russian fodder crops, the largest area of perennial pasture, in addition to annual pasture, corn, barley, oats, peas, forage rye, grain and bean crops, melon crops and so on.
In addition, after the collectivization of agriculture, Russia allows farmstead members and state farm workers to run personal side businesses as a supplement to the income of rural residents. Individual side business is mainly engaged in animal husbandry, the output value of animal husbandry accounts for about 2/3 of its total output value.
[Transportation]
Railway is the dominant one, and in 1990, the total length of the railroad operating line was 85,000 kilometers. Siberia 7,416 kilometers of railroads, 6,000 kilometers of the world's longest electrified railroad.
Highways play an important role in transportation. The total length of roads is more than 710,000 kilometers. With Moscow as the center, 14 main highway routes are well connected.
Maritime transportation and inland waterways are both developing fast. There is also well-developed pipeline transportation. Air transportation is dominated by passenger traffic, with routes to more than 80 countries.
Business Overview
With the development of the national economy and the reorganization of the strategic focus of the economic construction, Russia's business development is accompanied by some unstable factors.
Over the decades, the total retail sales of goods have gradually increased, and at the same time, the structure of goods has changed. The share of non-food goods (cultural goods, daily necessities, and especially durable goods) in the total retail sales has been increasing, while the share of food products has been decreasing. Among food products, the share of high-quality foodstuffs such as fish, meat, milk, eggs and fruit is increasing, while the share of grain products is decreasing. This reflects the improvement of the life of the Russian population and the rapid development of daily light industry.
Since the 1960s, the material and technical basis of commerce has developed and improved. Modern commercial networks and public **** catering networks have emerged. Advanced technical equipment and business methods have also been used to some extent.
Russia's commerce, although it has developed to some extent, is still a weak link in the overall national economy. This is a consequence of the imperfection of the commercial system and the serious disconnection between commerce and industry. At the same time there are a number of technical and equipment problems, such as commercial outlets, a serious shortage of business area, obsolete equipment, low degree of mechanization.
In recent years, due to the overall economic recession, business is also a corresponding depression. This is mainly due to two reasons: First, the sharp decline in social products, especially consumer goods. 1992 January to September, the production of consumer goods fell by 14%, of which the production of food fell by 23%, the production of light industry fell by 24%. Secondly, the growth rate of residents' incomes was much slower than the rate of price increases, and at the same time residents' deposits were greatly devalued, which led to a sharp decline in residents' purchasing power. The serious shortage of consumer goods coupled with the lower purchasing power of the population, resulting in the first nine months of 1992, the flow of retail goods fell 39%.
Along with the sharp decline in retail commodity turnover, commodity prices rose sharply. 1992 wholesale prices of industrial goods rose 33 times, and retail commodity prices rose 25 times, with the prices of many foodstuffs rising hundreds of times, and by the first half of 1993, food prices had risen again by several times, especially for foodstuffs. These created a chaos in commerce. On the one hand, there is a shortage of commodities and people's families are left without storage, while on the other hand, private traders are hoarding goods and inflating market prices.
In order to stimulate the development of commerce, the Russian government implemented privatization and transferred a large number of department stores into private hands. It has also set out a plan to sell about 8,000 department stores and service businesses each month, which will greatly increase the degree of business privatization.
Forms of Business
Currently, four forms of business exist in Russia. These are state business, cooperative business, collective farm trade, and private business, which has been growing in recent years with the introduction of privatization. Of these four forms, the state-run business is increasingly losing its dominant position, while the private sector is growing rapidly and is likely to overtake it.
State-run commerce
This is state-owned commerce, and state-run commerce is the main form of consumer goods business. State commerce includes not only the commercial organizations and enterprises of the Russian Ministry of Commerce system, but also specialized outlets of the Ministry of Industry system of workers' supply offices, the Ministry of Culture, the Ministry of Health, and other non-industrial ministry systems.
The fixed assets and working capital of State commercial enterprises and organizations consist of allocations from the State budget and profits from their own operations. The vast majority of state-run commercial outlets are located in towns and cities, mainly serving urban residents. State-run commerce still dominates the nation's wholesale and retail commerce. About 48% of the industrial and agricultural part of the products are still concentrated in the state-run business.
Cooperative business
This is collectively owned business. Its property is formed by the membership fee and share capital paid by the members of the cooperative and the profits from business activities. The principles for establishing cooperative business are voluntary and material benefit. It mainly serves the inhabitants of rural areas and small towns. Their selling prices are more flexible than those of State-run businesses. In addition to providing commercial services, cooperative businesses are also engaged in the purchase of agricultural products and raw materials, and the development of individual sideline businesses. Cooperative businesses account for about 23% of the country's total commercial retail sales.
The main cooperative businesses are: consumer cooperative business network and handicraft cooperative business network. In addition to state-run commerce and consumer cooperative commerce, in recent years, there have been state-run one-cooperative joint companies and cross-sectoral joint companies, such as agricultural and industrial joint companies.
Collective farm trade
Collective farm trade emerged during the process of agricultural cooperativization in the former Soviet Union. The collective farm market was established on the basis of collective farms and the property of individual citizens. Management of state farms, collective farms and individual workers to complete the task of the remaining agricultural by-products, as well as by-products. This form is a necessary supplementary source of food supply for the urban population.
The collective farm trade is primarily a form of dealing in surplus products produced by private individuals. As such, this form stimulates an increase in the production of agricultural by-products, expands the channels of commodity exchange between urban and rural areas, and improves the supply of agricultural products, while at the same time increasing the income of the collective farms and the individual laborers.
In recent years, farmers' markets have appeared in Russia as a result of the introduction of reform measures. This form of commerce can contribute to the supply of agricultural products to the population. This kind of market, from government-run to privately-run, management from administrative to economic leverage regulation. In the farmers' market, the price of products is not explicitly limited, and is generated and floated by the market itself.
Private Business
Under the guidance of a long centrally planned economy, the Russian private economy has been growing very little. After the collapse of the Soviet Union, with the introduction of privatization, the private economy began to develop rapidly, the establishment of private commercial enterprises. This was an important step in the marketization of the economy of the former Soviet Union and a complementary form of business. Russia put forward a draft law "On the Demonopolization (Privatization) of Property" to enable more residents and labor collectives to own private property, and even the voluntary union of state and cooperative enterprises into joint-stock companies, which are sold or auctioned off to private owners.
The introduction of privatization has been particularly notable in the commercial sector. For example, wholesale and retail commercial facilities enterprises, public **** catering and life service facilities, state cooperative trade and other areas. At present, more than 40% of the stores in Russia have been privatized, more than 370,000 private farms have appeared in the countryside and are increasing at a rate of about 8,000 per month, and the amount of capital is getting bigger and bigger, and in the sphere of commercial circulation alone, there are already more than 10,000 private owners with more than a million dollars. They are changing the content and form of commercial services in Russia.