Russia
How does Russia show NIC characteristics?
How does Russia show NIC characteristics?
Background History
!
The economy of Russia
is the 9th largest in the world.
Russia also has the 6th largest
purchasing power parity.
Natural gas, oil, coal, and
precious metals are in
abundance in Russia, however
good health care, including
medical supplies and vaccines,
are scarce. Russia has
undergone significant changes
since the collapse of the
Soviet Union, moving from a
centrally planned economy to
a more market-based and
globally integrated economy.
Soon after the collapse of the Soviet Union in 1991, Russia was able to
revive their economy. This transition of economies has brought Russia to a
command economy. In late 2008 and early 2009, Russia experienced the
first recession after 10 years of rising economy. It was one of the most
impacted countries from this global recession. Stable growth resumed in late
2009 and 2010. Russia is not experiencing the same issues with debt as the
European countries. After the collapse of the Soviet Union, and the
recession, Russia was considered an NIC because of the indicators shown in
the following paragraphs.
What is an NIC?
The definition of an NIC is “A term used by political scientists and
economists to describe a country whose level of economic
development ranks it somewhere between the economically developing and
economically developed classifications. These countries have moved away
from an agriculture-based economy and into a more industrialized, urban
economy.” Some indicators which show us how Russia is a NIC include life
expectancy, literacy rate, GDP per capita, inflation rate, and labor force by
occupation. Inside Russia there is not much disparity, meaning there is not a
lot of inequality. Most people in Russia are provided basic human needs.
Inflation Rate and GDP Per Capita
Inflation rate is a good indicator to look at when determining whether
a country is MEDC, NIC or LEDC. As inflation grows you need more money to
buy the same goods or services. The opposite of this is deflation. As of 2010,
How does Russia show NIC characteristics?
Russia’s inflation rate is 6.9 percent, which is high, however, in 2009 it was
11.7 percent. In this situation the citizens loose because they are paying 6.
percent more for an good or service. The government is winning as they are
gaining a lot more money. A typical inflation rate of a MEDC is around 2
percent to 4 percent, therefore, Russia's inflation rate is mid-range. High
inflation can be the result of an increase in an average person’s spending,
which brings us to GDP per capita. GDP per capita is an indicator to show
how much money on average a person makes a year. Liberia, a LEDC, has a
GDP per capita of $500. In 2010, Russia’s GDP per capita was $15,900, this
makes it ranked 71 in the world. Qatar, a MEDC, has a GDP per capita of
$179,000. Compared to Russia this is very high. Looking at this data,
Russia’s GDP per capita is mid-range, meaning it is not considered MEDC but
it is also not considered a LEDC either.
Labor Force By Occupation
Another indicator used to determine whether a country is a
MEDC, LEDC or NIC is labor force. Labor force shows the percentage of
people working in agriculture, industry and services. In a LEDC the
population is mostly agriculture and in an MEDC the labor force is
mostly industry or services. Industry is the use of machines, where as
services are professions such as teachers, receptionist, and engineers.
The following pie chart shows Russia’s workforce:
Russia’s Labor Force By Occupation
Agriculture
Industry
Services
10%
58%
32%
How does Russia show NIC characteristics?
The pie chart above shows how most of Russia’s jobs are in services. In fact
the least amount of Russia’s jobs is in agriculture. This tells us it does not
rely on cheap production to earn money. They are able to spend money on
the machines and pay the workers without worrying about debt. Looking at
this data we can tell Russia is a MEDC.
Agriculture
Industry
Servies
Liberia’s Labor Force By Occupation
22%
8%
70%
When looking at the second pie chart of Liberia, we can see most of Liberia’s
jobs are in agriculture. This means they rely on the cheapest form of jobs to
earn money. Compared to Liberia, Russia is economically developed. Using
these pie charts we can tell Russia’s Labor force shows a MEDC
characteristic.
Life Expectancy
Life expectancy is an important indicator as it shows the average life
span of a person. An LEDC life expectancy is 0 to 50 years and a MEDC life
expectancy is 70 plus years.
Life Expectancy (years)
Total Population
Male
Female
66.29
59.8
73.17
The table above shows the life expectancy of the total population, males and
females. Usually males live longer than females, however in Russia this is
not the case. The total populations average life expectancy is 66.29, which is
How does Russia show NIC characteristics?
not considered a MEDC but it is not considered a LEDC. Therefore, Russia’s
life expectancy is mid-range.
Literacy Rate
The last indicator that can help decide whether Russia is a NIC is
literacy rate. Literacy rate is the percentage of people who can read and
write. A MEDC’s typical literacy rate is 99 percent or higher, although, the
ideal literacy rate of a MEDC is 99.9 percent. Russia’s literacy rate is 99.4
percent. This shows Russia is a MEDC. In Russia more males than females
are educated. We know this because the literacy rate of males is 99.7
percent and the females is 99.2 percent. This is showing disparity as men
and women are not treated alike.
Looking back at all of this data we can tell Russia is a NIC because not
all of the indicators show MEDC characteristics but not all show LEDC’s
either. The MEDC characteristics are literacy rate and labor force. While there
are not any LEDC indicators there are mid-range indicators. This means they
do not meet MEDC or LEDC characteristics, rather they are in between.
These indicators include life expectancy, inflation and GDP per capita. If the
Soviet Union had not collapsed and if Russia did not have a recession it could
be a MEDC, but these events stopped the rise of economy.
How does Russia show NIC characteristics?
References
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