A. Changing Economies The Soviet Command Economy Government owned everything! Banks, factories, mines, transportation, farms Soviet government emphasized heavy industry so they could become a world super power This caused little production of consumer goods This made it very difficult for the citizens to have the basic things they needed to survive! People resorted to purchasing things on the black market – illegal trade system – very high prices
Market Economy Gorbachev tried to move towards a new economy Privately owned businesses Privatization This occurred more after the fall of the Soviet Union Unfortunately, many Russians did not reinvest their money in Russia, they chose to do so in other countries Transition Continues Moscow Growth
B. Agriculture & Industry Agriculture Kolkhozes vs. Sovkhozes – know the difference!
Industry #1 – Petroleum extraction & processing Crude Oil Iron Ore, Manganese, Nickel Manufacturing Steel Heavy Machinery Ag Equipment Volga Coupe Belarus Tractor
C. Transportation & Communications Transporting Goods Roads aren’t good – especially in Siberia Depend mostly on railroads & waterways for transportation Transporting People Railroads are most common Many people do not own cars Use public transportation Use airlines Very expensive
Transporting Energy Pipelines Natural Gas & Oil Mass Communications Soviet Union – controlled all of this! Now – private ownership has grown
D. Global Interdependence Trade Has developed partnerships with other countries for trade Became a member of APEC (Asia-Pacific Economic Cooperation) in 1998 International Relations Growing Poorly funded military Getting loans from other countries
II. Section II People & Their Environment Moscow
A. Managing Resources Using natural resources to help strengthen their economy Has inherited a legacy of horrible environmental problems During Soviet rule, the government only cared about power and not damage they were causing to the land Russia must now use their natural resources without causing similar damage Must also repair the damage already done
B. Pollution Water Quality One of the world’s largest supplies of freshwater Much of it is very polluted Volga River Lake Baikal – oldest & deepest lake in the world Polluted by neighboring paper factory Soil & Air Quality Soil poisoned with waste and pesticides During the 1990s, experts believe that only 15% of Russia’s urban population had acceptable air quality
B. Pollution (cont) Nuclear Wastes Between 1949-1987, the Soviet Union set off more than 600 nuclear explosions & stockpiled nuclear weapons The whole world is concerned with the fate of this issue Nuclear wastes are the by-products of nuclear power Can remain radioactive for thousands of years (cause cancer – for example) Chernobyl During the Cold War, nuclear power generated much of the power in the Soviet Union In 1986, a fire in a nuclear reactor in the town of Chernobyl (Ukraine) released several tons of radioactive particles into the environment Over 8,000 people have died so far Millions more are continuing to suffer In Russia alone, over 19,300 sq. miles contaminated Over 30 million people used to live there! After Chernobyl, there has been much international pressure to close these type of plants
B. Pollution (cont) Chernobyl plant explosion site
Relations with the US How has our relationship changed since the Cold War ended? How has Putin led his country?