Essay on Property Right Security in Russia

Submitted By frankgomezg
Words: 709
Pages: 3
Open Document
The aim of this paper is to understand the effects of moving an economy from a centrally planned economy to a market system using as an example the Property Right Security in Russia. To do that this student will assess the impact of deprivatization on managers and its impact in foreign investment in the country. Moreover, this student will provide a comment regarding the long-term effects of deprivatization, winners, and losers of these actions, as well as the effects of this deprivatization on politics. The case study explains how since 1992 many Russian corporations are now privatized and owned by foreign capital and investors. These privatizations caused a downturn in the economy, which forced the Russian government to reevaluate the privatization rules and to reverse some of these agreements. Although the government pledged that only illegals privatizations will be affected by this measurement, the reality is that because of the unclear rules, any pretext can be use against any corporation where the Russian government could have a renew interest. Because mangers need to be aware of not only the current events within their organizations but also aware of the environment, including the political environment, they will need to understand that there is an increase in risk factor of loss for all current and future investments of the organization. Since all these changes in the ruling of privatization are promoted and sometimes enforced by the Russian government, managers need to recognize that uncertainty will play an increasingly important in calculating the Return on Investment. On the other hand, foreign investment in Russia will suffer greatly because there is no legal framework that will protect organizations from deprivatization. Since the increase of political risk, investor needs to take into consideration the high probability of no return on their investments. Foreign investments in countries are usually successful which makes them attractive to governments that need to increase their profits by appealing to the nationalistic sentiment of their constituencies. A recent example of this is the deprivatization of the Oil Industry in Venezuela that brought about losses in employment, oil production, and profits for both parties both that was beneficial for the Venezuelan government that used this as a political propaganda.
This student considers that if Russia wants to establish a free market system, then the deprivatization of some industries is not in their best interest. Moreover, deprivatization without clear and just rules for both parties involved only affects the environment for possible foreign future investment and will adversely affect the growth indicators in the region. Furthermore, in the case of Russia and Venezuela, deprivatization was a political move that targeted the nationalist sentiment to gain voters without any regards for the economics of the country.
Deprivatization only helps those that will benefit directly or indirectly from taking control
Show More

Related Documents: Essay on Property Right Security in Russia

Russian Privatization Essay

Property Right Security in Russian Deprivatization Student name Class Date Table of Contents Market Systems Compared to Central Planning 3 Russian Deprivatization………………………………………………………………………………….…………….……………………..….3 Political Issues Surrounding Deprivatization………………...…………………………………….……………….………………….4 Property Rights Incentives in Markets……….…………………………………………………………………………….………….....4 References…………………………………….…………………………………………………….…………………………….…………..……….5…

Words 599 - Pages 3

Geography: United Nations and Sacred Space Essay examples

of collective responsibility to pursue peace and security still makes equal sense for the strong and the weak countries of the world. I believe it does. The weak want to know that if they're threatened by another country the international community will not be indifferent. The powerful know that even if they had the resources to wage war successfully against any potential aggressor state, it would be better to spare those resources if their security and national interest could be indubitably protected…

Words 1055 - Pages 5

Unit 1 review Essay

peacefully Goes to hell… They kill him What would Louis do? Nothing—violence spreads How to calm things down? Start Anew Scrap Ancien Regime, 1789 Monarchy and feudal structure gone A Declaration of the Rights of Man and of the Citizen Liberty, property, security, and resistance to oppression Liberties by restraining power End of Monarchy? Mob sacks Versailles, seizes royal family House arrest in Paris King forced to swear loyalty to new constitution Louis’ great escape…

Words 623 - Pages 3

International Regulations Vs Usa

International regulations were developed to create standardization between countries. If every country created its own security policies and regulations it would to enforce and would make it difficult for anybody interacting in the system. Standard procedures will create uniform rules that will be easier to follow and allow better communication between countries regarding security. Enforcing the regulations can be difficult and has led to treaties and international organizations. United States laws…

Words 638 - Pages 3

World War Ii Essay

* Angry mob seized the bastille * NA wrote “declaration of the rights of Man and the citizen” * “Liberty, equality, and fraternity” * France became constitutional monarchy * NA replaced by the convention * Convention changed from monarch to republic. * Revolutionary changes to religion, dress, calendar, women’s rights * The directory takes place * Gave woman rights for education and property Napoleon: * Brilliant military leader * Supported the revolution…

Words 2022 - Pages 9

Promoting And Expanding Democracy Research Paper

last five decades, Washington has done little to promote Arab democratization, relying instead on the autocratic leaders of Egypt, Saudi Arabia, and other countries to help protect vital U.S. interests in the neighborhood (Cook, S. A. (2005). The Right Way to Promote Arab Reform Foreign Affairs, 84(2), 91-92). Constructing further, with examining regions that come to rely on criminal justice officials to actively promote the rule of law or justice; such as, East and Central Europe, China, Japan…

Words 1889 - Pages 8

The Libertarian Party

of activists in Colorado, the Libertarian Party believes in a government based on the concept of self-ownership, “Each individual has the right to control his or her own body, action, speech, and property. Government's only role is to help individuals defend themselves from force and fraud.” (www.lp.org) The Libertarian Party believes that everyone has the right to live and believe however they please. This belief is shown largely in the prominent leaders of the Libertarian Party because they don’t…

Words 951 - Pages 4

EXTENDED RESPONSES FOR LEGAL HSC Essay

Family Law Essay Q27 (a) Laws are defined to be rules which are determined and enforced by a sovereign power. These laws are developed in reflection of society’s beliefs, values and attitudes towards certain areas of life. However society is very dynamic and laws must be amended and reformed to meet these changes within society. Family law is a dynamic area of the law, with perceptions of family and family affairs constantly changing. Within family law there are three main areas of reform, firstly…

Words 1786 - Pages 8

Essay on Practice Questions

of their assets and enterprises after business enterprises. In 2003, for example, the People's Republic of China modeled 80% of its state-owned enterprises on a company-type management system.[2] Many state institutions and enterprises in China and Russia have transformed into joint-stock companies, with part of their shares being listed on public stock markets. Business process management (BPM) is a holistic management approach focused on aligning all aspects of an organization with the wants and…

Words 1770 - Pages 8

Market Overview Russia Essay

Introduction:- Russia is a country located in northern Eurasia bordering the Arctic Ocean between Europe and North Pacific Ocean. Neighboring countries include Azerbaijan, Belarus, China, Estonia, Finland, Georgia, Kazakhstan, North Korea, Latvia, Lithuania, Mongolia, Norway, Poland, and Ukraine. The geography is diverse and includes vast forests and tundra in Siberia and mountains along the southern borders. Major Geographic Features The Russian Federation is the largest of the 21 republics that…

Words 2734 - Pages 11