Russia holds a wealth of natural resources: the country holds 13 percent of the world’s oil reserves and 33 percent of the natural gas reserves. After communism fell in 1989, Russia wanted to encourage capitalism quickly, and privatized state-owned industries all at once.

However, the Russian economy of today is smaller than the one before communism ended, even though it is growing at a good clip each year. This is because there is much corruption within the government and industry, and those who had the resources and wealth during communism are unwilling to give them up. And since monetary policy was tightened (raising interest rates) in the face of inflation, it made it more expensive for households to borrow money.

The shaky confidence caused much foreign direct investment to be removed. The currency was expected to crash after oil demand decreased, and the bailout of the International Monetary Fund (IMF) proved to be the wrong course of action. The ruble was devalued, which improved the competitive position of Russia’s exports, so the economic recovery began.

India gained independence in 1947, and grew at an average rate of growth, relative to other developing countries, for a number of decades. India, at its time of independence, had much of its populace facing famine and extreme poverty. The leaders managed to hold a relatively high savings rate, which allowed the government to gather some resources and capital英语论文网 【http://www.51lunwen.org】. In 1980, India began a liberalization strategy; therefore, tariffs and import and export controls were relaxed.

A debt crisis occurred in 1991, along with lobbying efforts for cheaper imports by industry, which prompted the government to adapt additional reforms: industrial licensing was ended, tariffs were substantially reduced, the rupee was made convertible, and private industries were allowed into the electricity and telecommunications sectors. Foreign direct investment was encouraged, and moved into the country with the hopes for increases in consumer demand. Economic growth picked up once again, but the budget deficit was found to be quite challenging to reduce.

China began reforms in 1979, which started a gradual transition from a centrally-planned economy to one based on open markets. Since the reforms began, rising household incomes have increased consumer demand for goods and services, causing expanding retail sales. The government also selected industries to receive financial support in order to encourage growth.

Since its entrance into the World Trade Organization (WTO) in 2001, China has been ordered to liberalize trade and its financial services sector. Another compliance that China has to contend with is adhering to international economic laws. China will have to reform its legal system in order to comply with the WTO’s mandate.

China’s growth has been based on extensive growth, which means increases in capital and labor fuel 本文来自：英语论文网 【http://www.51lunwen.org】