Regulatory Institutions

Economic Development, Advancements and Innovations

Regulatory Institutions of Particular Significance

Russian Ministry of Health

  • The Russian Ministry Of Healthcare, alternatively known as Minizdrav, is responsible for the drafting and implementation of government policy, as well as legal regulation in areas of health care, health insurance, production and distribution of pharmaceuticals and various drugs and all other aspects of Russian health.

Russian Central Bank

  • The central bank of Russia is responsible for the regulation of the Russian monetary system. The primary function of the central bank is to stabilize the ruble through the control of foreign trade. The Russian Central bank inherited the functions of the Soviet-era Gosbank, only with a less rigid, controlled form of currency

Russian Ministry of Foreign Affairs

  • The Russian ministry of foreign affairs is the denomination of the central government concerned with international relations and policy.

Russian Ministry of Culture

  • The Ministry of Culture is a governmental sphere concerned with the affairs of art, cinematography, literature, archives and international issues. This role also includes that of censoring anti russian film and media

Analysis

Russia’s economic, political and social climate is attributed to significantly by government regulatory institutions. Throughout Russia, issues of social disparity in quality of life, lack of access to skilled employment and freedom of artistic expression manifest themselves in Russian society. As a result of the Soviet Union and its emphatic subsidy of education, Russians are considered the nationality with the highest literacy rate of both previous years and of the present (99.68%, countryeconomy.com). From being so literate, many Russians have degrees which render them overqualified for the available jobs. As a result of the overqualified populus, many of the lesser considered professions of the economy in industries such as manufacturing, agriculture or armaments are neglected, as a significant paucity of low skilled workers exists in the Russian workforce. Because there is a job deficit for those seeking careers their degrees cater for, a wage disparity exists between those that can make use of their degrees and those that cannot. The proposed USD 15 billion investment in the neglected industries of the Russian economy will motivate and incentivise people of the Russian populus towards more laborious professional enterprise through government-subsidised training programs in preparing workers for their work requirements. As a government ministry, the central bank of Russia is the entity that decides the cost of living in Russia. 

Russian interest rates have decreased from 7.5% to 7.25 to address inflationary concerns with the value of the Russian Ruble (RUB) closing at 66.57 per USD, showing a steady incline from July’s 63.03 RUB to USD, and the average GDP per capita at $10 743.1, an increase of 22.7% from 2016 ($8 759). With economic indicators of increased GDP per capita, increasing interest rates and the rising value of the Russian Ruble, it would yield intrinsic benefits of economic expansion in the Russian economy as more people would have more money through the increased employment in the growing industries of electronics and manufacturing etc, thus allowing for the people of Russia to become more creditworthy, allowing for higher government expenditure through raised taxes. Further, as a result of the rigorous media requirements in the Ministry of Culture’s criteria, cultural devices from countries worldwide cannot enter Russia. In a silhouette of the Soviet Union’s conditions regarding the public exposure to foreign media, the Russian Federation imposes heavy-handed criteria upon both the foreign and domestic films and cultural media that are available to the Russian populus. Although the investment cannot fix this issue altogether, it is seen that a step in diversifying the workforce reaps more economically intrinsic value in the development of the economy through the increase in spending and wages by decreasing unemployment.