Ric - Destep

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Content – DESTEP Analysis
The Russian Federation2
Demographic2
Economy3
Social3
Technological3
Ecological3
Politics4
India5
Demographic5
Economic5
Social6
Technological6
Ecological6
Politics6
Demographic8
Economic8
Social8
Technological9
Ecologic9
Politics9

The Russian Federation

Demographic
With 17,098,242 square kilometers, Russia is the biggest country in the world. However it is the ninth country when it comes to population. Having 147 million people living there. Russia has a population density of 8 people per km2. This makes it one of the most sparsely populated countries in the world. About 73% of the population live in urban areas. Just before the breakup of the Soviet – Union, the population experienced a rapid decline. The peak of the population after a long period of growth was in 1991, when the population was calculated at 148 million people. After this year, the high death rate and the low birth rate resulted in a decline of the populations that lasted until 2008. Russia is one of the most cultural diverse countries in the world. The country is home to about 160 ethnic groups.

Economy
The trade with Russia has increased much over the last couple of years. That is why the economy grew strongly. But the economic crisis hit the Russian economy very hard. The yearly growth of the GDP changed into a decline after the crisis hit. Unemployment has risen and the industrial production had a terrible year. In long term, the Russian economy is expected to get better. The unemployment rate is expect to go down. But there is no sign of a full recovery. The progress is very fragile. Russia’s key sectors are:

* Energy
* Cars
* Metals
The economic crisis has had a big impact on these industries. Especially the car industry was hit hard. Despite government efforts to boost sales and increase car financing, the sector continues to decline.

Social
There are many large religions in Russia. The biggest are Russian Orthodox and the Islam. Russia has a large amount of non-believers and non-practicing believers. The cause of this was the policy of the Soviet Union. From 1928 to 1939, the Soviet Union was an atheist state. Religion was largely discouraged and people who practiced religion were persecuted. When doing business with Russians, it is very important that the differences between cultures are understood. Personal and informal contact is very important. Physical contact, like handshakes and embracement’s, can make your Russian business partner feel comfortable. The majority of the Russian population are very people orientated and will respond more to a personal approach.

Technological
Russia is no longer of the leaders in the world when it comes to technology. In the last five years, Russia was responsible for 2.6% of researches that were published worldwide. This is less than India (2.9%) and far less than China (8.4%). In the past Germany was the most important partner in technology for Russia, but now Germany has been replaced by the United States. The focus in Russian research is mostly on physics and chemistry. The researchers have very little interest in agriculture and computer science. Also less than 1% of the Russian’s says that science can lead to prestigious career.

Ecological
The mining industry and the oil industry are very important to Russia. But the environmental issue has not been as important. The amount of oil that is lost from the pipelines and is polluting the country is estimated at 9%. Russia signed the Kyoto Protocol in 2004, but the country overrides the western norms by a great amount. Russia has a long way to go to fulfill their commitments towards this protocol.

Politics
The Russian federation is a semi-presidential Republic. President Putin is the current head of state. After being the prime minister before and president before that. Russia has big corruption problems. One of these problems is the...
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