Economy of the United Kingdom

Text II.

Economy of Russia

Text I.

The Soviet Union had a centralized state control over virtually allmeans of production, exchange, distribution and investment. The Soviet Union also had a planned economy. Economic policy was made according to directives from the Communist Party, which controlled all aspects of economic activity.

Russia undertakes the transition to fully-developed market economy with challenges and obstacles. However, Russian economy has great potential for growth. Russia possesses huge supplies of many of the world's most valued natural resources, especially those required to support a modern industrialized economy. It also has a well-educated labour force with substantial technical expertise. At the same time, Soviet-era management practices, old infrastructure, and inefficient supply systems hinder efficient utilization of those resources.

Russia ended 2004 with its fifth year of growth. Although high oil prices and a relatively cheap ruble are important factors of these economic successes, since 2000 investment and consumer-high demand played a noticeable role.

Real fixed capital investments averaged gains greater than 10% over the last four years and real personal incomes increased over 12% on average. Russia also improved its international financial standing since the 1998 financial crisis, with the decline of its national debt.

Strong oil export earnings allowed Russia to increase its currency reserve. These achievements, along with a renewed government effort to advance structural reforms, raised business and investor confidence in Russia's economic prospects.

Nevertheless, serious problems exist. Oil, natural gas, metals, and timber account for more than 80% of exports. Other problems include a weak banking system, a poor business climate that discourages domestic and foreign investors, corruption, local and regional government intervention in the courts, and widespread lack of trust in institutions.

The united Kingdom has the fourth largest economy in the world, the second largest in Europe, and is a member of the European Union. Its capital, London, is the largest financial centre in the world.

The UK economy is one of the strongest in Europe; inflation, interest rates, and unemployment remain low. Growth is now at 3.0% per annum, which is higher than that of France, Germany and many other European countries.

The UK has large coal, natural gas, and oil reserves; primary energy production accounts for 10% of GDP, one of the highest shares of any industrial nation.

Due to the North Sea oil during the 1990s the UK became a net hydrocarbon exporter and the second largest producer of oil in Western Europe after Norway. Around about 80% of the UK electricity is currently generated from fossil fuels, nuclear power. The UK is the world's 8th greatest producer of carbon dioxide emissions. It produces around 2.3% of the total fuels.

Service industries, particularly banking, insurance, and business services, account for the largest proportion of GD P and employ around 70% of the population.

Manufacturing continues to decline in importance. The UK was left with a very small domestic manufacturing sector. However British companies world wide are present in the sector through foreign investment or through the closure and movement of factories to Eastern Europe and the Far East in search of lower costs.

Tourism is the 6th largest industry in the UK, contributing 76 billion pounds to the economy. It employs 1,800,000 full-time equivalent people – 6.1 % of the population.

Agriculture is intensive, highly merchandised, and efficient by European standards. It produces about 60% of food needs with only 1% of the labour force. It contributes around 2% of GDP. Around two thirds of production is devoted to livestock, one third to crops. The main crops are wheat, barley, oats potatoes, sugar beets, fruits and vegetables. The livestock that is raised is cattle and sheep. The GDP from the farming sector is however a small return on the subsidies of the government.

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