Coevolution of Knowledge - Innovation - and Creativity

Questiuon: Discuss about the Coevolution of Knowledge, Innovation, and Creativity. Answer: Introduction: The Russian economy is performing very well because of the new modern economy adopted by Russia in 1991. Earlier, the economy was not that much productive, because of policies and centrally planned economy (Gaddy Ickes, 2005). The reasons behind the performance of Russian economy are modern democracy with an economy system of free market, high prices of gas oil, high exports of oil gas, low public debts, healthy trade and many more (Kingston Mixter, 2014). Oil and gas is the major element behind the economy and performance of Russia. But in 2014, the price of oil started falling all of a sudden because of the supply of oil from US. And it directly impacted on Russian economy as a lower GDP and less export (Sutela, 2013). After adopting the changes in 1991, the Changes found in Russian economy were not expectable for the citizens and world. The associated crime and corruption which was haunted from years before 1991 became so low after adoption of modern changes (Alexeev Weber, 2013). Putins ability in accumulating the political power: The strength of Putin behind accumulate political power at Russia are Consolidation of power as he is ruling the party (united Russia) at Russia which is the biggest party, Election fund is in his control and as everybody is aware about election fraud over there is corrupt, Russian Culture helps him as the culture is having a long story over there and it controls the personality, War in Chechnya helped him to became the president again as people had no choice at that time (Allison, Light White, 2006), Dissident Repression as he always put someone away when they show their disagreement regarding Putins statement and Russian constitution as earlier Putin was serving as a President but according to the rule he was not permeable to be on that post for more than 8 years so he left for Dimitri Medvedev and again elected as a President in 2012. Thus these all factors helped him again and again in accumulating political power at Russia (Guriev Tsyvinski, 2010). Putins hold on power: At this time, I do not think that Putin can hold more on the powers. As after more than a decade in power, now he is struggling with many problems such as fall in the price of oil continuously, less export and many more (Benedictow, Fjrtoft Lfsns, 2013). There are so many factors which are against Putin in Russian economy now, even citizens of Russia are not seeming quite happy with him. Even the trustworthy people of Putin are against him now. The inflation rate is continuously increasing by a faster rate and it is directly impacting on the economy of Russia (Roxburgh, 2013). Things became worse for Putin now. It is not easy for him to overcome through such problems. If he changes the policies and implement some good idea for economic growth and make the citizens understand that he is the best leader then there are chances of him to hold the power again. FDI in Russian Market: After the period of 1991, the FDI has been increased in Russian market. Many countries and their investor invested in Russian market. But in the current scenario, because of political environment and Economy issues, the profitability of foreign direct investment has been lower (Roland, 2006). The export has been lower and the corporate governance is also affecting the profitability of investors. Because of the president and issues related to him, the market of Russia is not performing well and thus the FDI is showing less interest in Russian Market now. The legal system, fiscal policies, macroeconomic, accounting, regulatory regime and level of corruption are the main reasons behind less profitability of foreign direct investment. The banking sector of Russia is having several crisis and non stability. Thus it is expected by the market to lose $7 billion of FDI in next year (Putin, 2013). Future of FDI: The Russian market is not performing well because of many factors like corruption, governance, policies, banking and many more (Kazantsev, 2010). The Foreign direct investment is expected to become lower in next year because the investors are not even able to make profit in the Russian economy. Companies are divestment from the economy as fast as they can (Nikonov, 2012). The future of FDI at Russian market is not good. Oil, timer, metal and natural gas are the main element of exports of Russia with 80% share (Ustinova, 2014). But these products are no more able to run the economy. The inflation rate is increasing continuously and still 25% people are under poverty line. It is not so impressing for foreign investors to invest in this economy. References: Alexeev, M., Weber, S. (Eds.). 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