State Representing: Russian Federation

Committee: I nternational Monetary Fund

Agenda: Russian Economic Condition

The 20082009 Russian financial crisis, part of the world Economic Condition of 2008, was a
crisis in the Russian financial markets as well as an economic recession that was compounded by
political fears after the war with Georgia and by the plummeting price of Urals heavy crude oil,
which lost more than 70% of its value since its record peak of US$147 on 4 July 2008 before
rebounding moderately in 2009. According to the World Bank, Russias strong short-
term macroeconomic fundamentals made it better prepared than many emerging economies to
deal with the crisis, but its underlying structural weaknesses and high dependence on the price of
a single commodity made its impact more pronounced than would otherwise be the case.

In late 2008 during the onset of the crisis, Russian markets plummeted and more than $1 trillion
had been wiped off the value of Russia's shares, mainly due to corrupt governance,tax and state
budget policy problems, bank failures as well as problems arising in the money markets,
although Russian stocks rebounded in 2009 becoming the worlds best performers, with the
Micex Index having more than doubled in value and regaining half its 2008 losses.

Russia's economy emerged from recession in the third quarter of 2009 after two quarters of
record negative growth. GDP contracted by 7.9% for the whole of 2009, slightly less than the
economic ministry's prediction of 8.5% Experts expect Russia's economy will grow modestly in
2010, with estimates ranging from 3.1% by the Russian economic ministry to 2.5%, 3.6% and
4.9% by the World Bank.


Having quickly recovered from the global financial crisis, Russia has consolidated its position as
the highest ranked in ease of doing business among the BRIC nations (Brazil, Russia, India and
China). With a large and expanding consumer market, abundant natural resources and strong
telecommunications infrastructure, Russia remains a key market for outside investors.


State Representing: Russian Federation
The countrys ambition has always been to join the community of the worlds wealthiest
industrialized nations. However, after many years of fast-paced growth, current projections put
economic growth in 2013 at 1.4%. It is now clear that Russias economy is expanding at a slower
pace and will continue to do so in the near future. Truly innovative solutions will be required if
Russia is to avoid the middle-income trap. As Russias leaders consider avenues for reversing the
downward trend, a sound foundation for sustainable growth will have to be built on greater
efficiency, accountability and transparency of government services, investment in human capital,
fostering of regional competitiveness and responsible stewardship of natural resource
endowments. The economic, political and social developments underway in Russia are of great
importance to the world community, given Russias accession to the World Trade Organization
(WTO), presidency of the G20 in 2013, forthcoming Winter Olympic Games and chairmanship
of the G8.

Steps required to quickly recover the economic condition of the Russian Federation:
1. To work with regional administrations, business and academia in conjunction with the federal
government to implement the regional economic growth models and share the outcomes with BRIC
countries.
2. To properly plan on what to do next in the next World Economic Forum Annual Meeting 2014 with
the finalized reports and analysis gained from World Economic Forum Moscow Meeting 2013.
3. To solve all national problems regarding the deteriorated economic condition mainly of which the
corrupt governance resounds to present itself.











References:
http://en.wikipedia.org/wiki/2008_Russian_financial_crisis
http://www.weforum.org/content/global-agenda-council-russia-2012-2014