0 С Listening 4)))

You're going to hear three people expressing their views on the winners and losers in the Russian economic reforms. As you listen, make notes in the table.

Winners

Losers

People

Industries

Places

and gas. the e c o n o m y went into a long and difficult

depression, f inally, in 190S, when an e c o n o m i c crisis hit the bast Asian Tigers, oil prices began to fall around the world. For Russia, it turned a depression into an e c o n o m i c crisis.

However, from 1000. world oil prices began to rise again Mostly with m o n e y earned from energy exports. Russia began to pay off its foreign debts Inflation fell and the value of the rouble stabilised. T h e e c o n o m y was recovering, ( d ) f ' g r e w steadily year after year, and foreign investors began to show c o n f i d e n c e in investing in the country. Moscow's place at the top of the list of the world's most expensive cities is not enviable. However, it is a clear sign that the Russian e c o n o m y has survived a difficult time

HacitilUs Guida to Econamcs Unit Jl 109

Before you read

Discuss these questions with your partner.

What do you think are Russia's main exports and imports? Where do you suppose most goods that you buy in Russian shops these days are made?

-* Do you have any idea which is Russia's strongest

industry today?

ff D Vocabulary

Complete each sentence with a word or phrase from the box.

Russia's foreign

arms broke ties with

domestic consumption fall back on trade

infrastructure

privileged elite Socialist Bloc

• turnover

Factories become

open to

run down

the future holds

if management

Through most ol the J " t h century, Russia's, or the I'SSR as it was known f o r most of that century, trade with the outside world was mostly limited to trade with o t h e r m e m b e r s of the Socialist Bloc It was self sufficient 111 energy resources and primary goods. Its manufacturing industry was for

don't look after buildings and invest in

d o m e s t i c consumption only Foreign consumer new equipment.

Nobody really knows what

should make plans anyway. Marty countries make lots of money selling

like tanks and guns to foreign armies

but you

goods simply didn't exist. Investment from abroad was not encouraged because the government wanted full control of production and prices. But things have changed.

T h e Russia of the 21st century is much more

. In ihe West, the communist countries of the USSR <>]н:п to business with the rest of tin work!. Ill the

were called the When he left the company, he his old colleagues. It's good to have some savings to during hard times. The company was very a new range of products.

all

my proposal for

first six months of Jim is its total international trade turnover was worth about SI So billion. Both exports and ini|>orts have grown in recent years, but e x p o r t s are grow ing m o r e rapidly in value. This is mainly through the sale of oil and gas. In fact, energy resources make up over two thirds of Russia's e.\j»orts. T h e g r o w i n g price of these c o m m o d i t i e s on world markets has

Most of the wealth in modern industrial countries is owned by a small

Products for are only sold in the

country where they are made. • The means the roads, railways. power and communication networks that industry needs. The of our new products has been very high and we have gamed a good income from them

I 10 М Щ t mi 11 a » GuMi to Economic» Unit 21

brought huge amounts of foreign currency into the Russian e c o n o m y . Metals are also important for the Russian e c o n o m y . Russia's steel industry, for example, is o n e of the world's biggest ( И her primary goods such as tiinl4-r. minerals and fish are also important.

Tin v alue of trade isn't tin only thing that has changed T h e r e have ih-cu changes in Russia's trading partnerships, too. In the old Soviet days, and even in the years that followed tlu fall of

communism. Russia's main trading partners were other communist countries that used to be known as the C O M E C O N (Council for Mutual Economic Assistance) countries. In the early 1 W ) s , tor example. Russia still had trade agreements to export energy resources to many former Soviet republics. As oil prices increased, however, many of these countries found it difficult to pay for Russian oil. and exjxirts fell. At the same time, trade with other parts of the world, especially the European 1'iiion began to grow. Communist ties have not all been broken, though. ( ) n c of Russia's most important trading partners is China.

Rut what does the future hold for the economyV The danger for Russia is that it relies very heavily 011 exports of oil. gas ami minerals Prices for these commodities can change suddenly on the world markets. What does Russia have to fall back 011V At the moment, not very much. Its industrial sector is mostly run down and uncompetitive. During the Soviet years, a large part of the country's industrial strength was used to produce arms. Today, military equipment and weapons

Weapons are Russia's biggest export. Economists believe that Russia needs to invest more in its manufacturing industries.

Notes:

Before you listen

are still the biggest manufactured exports from Russia. It has to import almost all other manufactured goods.

Many economists K l i e v c that Russia must spend its oil money oil investing in capital and infrastructure for industry. Doing this will encourage foreign investment and further economic growth. In turn, this will help to spread the benefits of grow th to everyone ill Russia, not just a privileged elite.