31C Russian Economy: Opportunities and Challenges for Doing Business (L01)

Transcription

1 31C Russian Economy: Opportunities and Challenges for Doing Business (L01) 6 credits SYLLABUS Version (October 2016; updated) Instructor s contact information Name Svetlana Ledyaeva Svetlana.Ledyaeva@aalto.fi Office A219 Office Hours By appointment Intructor s Webpage: Course information Status of the course Bachelor Academic Year, Period 2016, V Location R001/U6 (U149) Otakaari 1 Language of Instruction English Course Website Teaching Assistants To be added 1. OVERVIEW The course provides an introduction to the Russian economy. We will begin with the insight into economic history of Russia from Tsar Period (starting from Peter the Great) and proceed to the years of transition from Soviet to market economy. We then progress to the discussion of current issues of the economic development of Russia. These issues include economic geography of Russia, Russian financial system, sectorial analysis of the Russian economy, international economic relations of Russia with the rest of the World and some others. Special attention will be given to the current situation in Russia, i.e. Russian economy under sanctions. This will include such issues as the economic and political causes of Russia-Ukraine crisis, Western sanctions on Russia and countersanctions of Russia, the consequences of sanctions for Russia, its main partners and global economy in general.

2 2. PREREQUISITES Obligatory: Principles of Economics (31A00110); Preferably (but not obligatory): Intermediate Macro- and Microeconomics (31C00200 and 31C00100). 3. LEARNING OUTCOMES Students will augment their understanding and knowledge of the Russian economy. The focus of the course is on general structure of the Russian economy, main principles of its functioning and its place and role in the world economy. 4. ASSESSMENT AND GRADING 1) One individual homework (10%); please, write your homework in English. It should be about 2-3 pages (font size 12, space 1.5). The questions for this homework will be uploaded on the course webpage. 2) One group homework (10%); groups will include 3-5 students; please, write your homework in English. It should be about 3-5 pages (font size 12, space 1.5). The topic for group homework will be unique for each group. The home work should be divided in several parts depending on the number of students in the group, i.e. each student will be responsible for his own part (which should be indicated in the homework). As a result, the grades might differ for the students within the group. However, cooperation within the group and the resulted overall level of the homework will be also taken into account in the grading process. 3) Presentation of the group homework and participation in discussion (10%). It is expected that each student will take part in the presentation of the group homework. 4) Term paper (30%); please, write your term paper in English (the brief guidelines are below; the detailed guidelines will be given in lectures). The updated list of topics will be available at the course web site. It is possible to write a term paper on the other topic (not included in the list) but the topic should be then preliminary discussed with the instructor. 5) Final exam (40%). 6) Extra points for participating in guest lectures: 2% for attendance of each guest lecture and 1% for 1 question to the guest lecturer (if you ask more than one question you do not get any additional points). This way, for three guest lectures you can get maximum 9% extra which will be added to your final grade. 5. ASSIGNMENTS The term paper: The paper is to be written in English by each student (i.e. individual). The essay should consist of a coherent presentation and discussion of a particular issue related to the course topics. Preferably, the paper should include introduction, main body and conclusions.

3 The paper/essay should contain list of references. Furthermore, it is strongly recommended to cite references in the body of the essay. The paper should be well focused. The term paper should be approximately 7-10 pages (font size 12, space 1.5). The essay is due on , noon. No late papers are accepted. IMPORTANT!!! Homeworks and essays should be uploaded to the MyCourse page. The instructions will be given separately. 6. READINGS Course book: Oxford Handbook of the Russian Economy, Edited by Michael Alexeev and Shlomo Weber, Since the book is not available in the Aalto library, the relevant book chapters will be uploaded on the course webpage. Articles, book chapters, etc. as specified by the instructor below. I do not discuss reading items in the lecture; this is just for your information and knowledge.

4 7. SCHEDULE No Week day Date Time Topic Instructor 1 Wed Thu Mon Thu Wed Thu Wed Thu Wed Thu Wed Thu *GL Guest lecture Economic history of Russia Russia`s economic transformation Sectorial Analysis of Russian Economy Economic Geography of Russia Labor market and public sector in Russia Ukraine-Russia crisis: Economic consequences International Economic Relations of Russia Eurasian Economic Integration Financial sector in Russia: Past developments and current situation Anti-crisis state policy in Russia: Current perspective From theory to practice: Fortum case Presentations of group homework GL: Laura Solanko, PhD, Senior Economist, Bank of Finland. GL: Vera Kononova, PhD, Institute for Complex Strategic Studies and Lomonosov Moscow State University. GL: Sergei Ilyukhin, FORTUM. Brief description of the lectures Lecture 1 Economic history of Russia Brief description: In this lecture the history of the Russian economy from the Tsar Russia (starting form Peter the Great) to Soviet Union (up to Brezhnev period) will be discussed. In this discussion particular attention will be paid to political institutions, political and economic environment and the history of economic system`s transformation in Russia. 1. Chapter 3 in Oxford handbook of the Russian Economy: Ericson R.E Command economy and its legacy.

5 Lecture 2 Russia`s economic transformation Brief description: In this lecture Russia`s economic transition from the year of 1989 will be discussed. In particular, we will focus on the stages of transition, reforms, privatization, and consequences of the transition for the economic development of Russia. 1. Chapter 4 in Oxford handbook of the Russian Economy: Åslund A. 2013, Russia`s economic transition. 2. Chapter 6 in Oxford handbook of the Russian Economy: Entov R.M. and Lugovoy O.V. 2013, Growth trends in Russia after Lecture 3 Sectorial Analysis of Russian Economy Brief description: In this lecture we will talk about structural changes in the Russian economy in recent three decades. The discussion will include an in-depth analysis of main industries and the concept of Dutch disease and its application to Russia. 1. Dobrynskaya, Victoria, and Edouard Turkisch. "Economic diversification and Dutch disease in Russia." Post-Communist Economies 22.3 (2010): Mironov, Valeriy V., and Anna V. Petronevich. "Discovering the signs of Dutch disease in Russia." Resources Policy 46 (2015): (also BOFIT Discussion Papers (2015): 1) Lecture 4 Economic Geography of Russia Brief description: In this lecture the following issues will be discussed: 1) Physical geography of Russia (i.e. natural constraints to the distribution of economic activity over the territory), including geography of natural resources, climate, and land quality in modern Russia; 2) Population geography of Russia: history and modern patterns (including migration); 3) Economic Geography of Russia, including distribution of economic activities across Russia; Russian urban system (size, location, functions of Russian cities); Russian regions (economy, growth, investment, inequality); industrial clusters. 1. Chapter 26 in Oxford Handbook of the Russian Economy: Markevich A. and Mikhailova T.N., Economic geography of Russia 2013.

6 Lecture 5 Labor market and public sector in Russia Brief description: In this lecture, first, the issues on how the Russian labor market has been evolving over last three decades will be discussed. The issues on educational system in Russia (with emphasize on the professional education, i.e. college and university education) and how it is linked to labor market will be also given consideration. Secondly, we will discuss public sector in the Soviet Union and present Russia; government debt of Russia; fiscal and monetary policies in Russia; tax system in Russia. 1. Chapter 29 in Oxford Handbook of the Russian Economy: Gimpelson V. and Kapeliushnikov R. 2013, Labor Market Adjustment: Is Russia Different? 2. Chapter 30 in Oxford Handbook of the Russian Economy: Michael W. Kaganovich 2013, Higher Education Reform and Access to College in Russia. Lecture 6 Russian economy in Ukraine-Russia crisis. Economics and Politics Brief description: In this lecture we will discuss economic and political causes and consequences of Ukraine-Russia crisis, Western sanctions on Russia and counter-sanctions of Russia and Russia`s economic development under sanctions. 1. Susanne Oxenstierna, Per Olsson, The economic sanctions against Russia - Impact and prospect of success, 2015, Ministry of Defence. Lecture 7 International Economic/Political Relations of Russia: Past, Present and Future Brief description: In this lecture we will discuss international investment and trade cooperation of Russia. Special focus will be given to the changes in this cooperation during Ukraine-Russia crisis. We will also talk about the impact of sanctions on global economy (including individual countries, e.g. Finland). 1. Chapter 25 in Oxford handbook of the Russian economy: Tarr David G. and Natalia Volchkova 2013, Russian Trade and Foreign Direct Investment Policy at the Crossroads.

7 Lecture 8 Eurasian economic integration Brief description: In this lecture, economic (and political (when relevant)) relationships of Russia with former soviet states and relevant international organizations will be discussed. Issues related to current Russia`s relationships with Ukraine and Belorussia, Commonwealth of Independent States and Eurasian Union/integration will be given special consideration. 1. Hartwell Christopher A. 2013, A Eurasian (or a Soviet) Union? Consequences of further economic integration in the Commonwealth of Independent States, Business Horizons, Volume 56, Issue 4, July August 2013, Pages Spechler Martin C., Dina R. Spechler 2013, Russia s lost position in Central Eurasia, Journal of Eurasian Studies, Volume 4, Issue 1, January 2013, Pages Nurgaliyeva, Lyailya. "Kazakhstan's economic soft balancing policy vis-à-vis Russia: From the Eurasian Union to the economic cooperation with Turkey." Journal of Eurasian Studies (2015). Lecture 9 Financial sector in Russia: Past developments and current situation Guest lecturer: Dr. Laura Solanko, Senior Economist, Bank of Finland Institute of Economies in transition (BOFIT) Brief description: Banking system and the development of financial market in Russia will be discussed. Oxford handbook of the Russian Economy 2013: 1. Chapter 23. Russian banking as an active volcano - Koen Schoors and Ksenia Yudaeva 2. Chapter 24. Financial and credit markets - Pekka Sutela Lecture 10 From theory to practice: Fortum case. Guest lecturer: Ilyukhin Sergey, Head of Fortum s Long Term Analysis.

8 Lecture 11 Anti-crisis state policy in Russia: Current perspective Guest lecturer: Dr., Vera Kononova, Senior Researcher, Institute for Complex Strategic Studies, Moscow; Associate Professor, Lomonosov Moscow State University Business School. Brief description: In this lecture we will focus on fiscal and monetary policy issues of Russian Government and the Central Bank of Russia during crisis in , including the Anti-crisis plan of the Russian Government, re-consideration of budget spending, recapitalization of banks. We would also discuss the controversy of inflation targeting goals set by the Central Bank of Russia and the necessity to support the economy in crisis. The specific attention would be put on the budget subsidies aimed to lower the interest rates for home loans, car loans and loans for SME. The economic and financial crisis in Russia. Background, symptoms and prospects for the future. / OSW Centre for Eastern Studies. Warsaw, February Lecture 12 Presentations of the group homework. 8. COURSE WORKLOAD Lectures 22 Home assignments (home works) 20 Term paper 50 Class presentation and discussion of group homework 10 Preparing for lectures 20 Revision/self study 10 Preparation for exam 15 Exam 3 Total ETHICAL RULES Aalto University Code of Academic Integrity and Handling Thereof> OTHER ISSUES Registration to course

9 At course website. Course Policies You can expect me: I can expect you: To start and end class on time. To assign homework that adequately covers the material and meets the learning objectives of the course while adhering to the time expectations for a course. To give exam that accurately reflects the material covered in class and assigned in homework. To come to class on time. To be attentive and engaged in class. To refrain from using cell phones and other electronic devices during class. To spend an adequate amount of time on the homework and term paper. To submit homeworks and term papers in time. To seek help when appropriate. Retrieving Course Materials The relevant chapters of the Oxford book of the Russian economy and other relevant course materials (which are not publicly available otherwise) will be uploaded on the course website. Rubrics 1. Homework (each 10%): 0-2% (poor); 3-5% (fair); 6-8% (good); 9-10% (excellent). 2. Term paper (30%): 0-7% (poor); 8-15% (fair); 16-23% (good); 24-30% (excellent). 3. Class presentation of the group homework (10%): 0-2% (poor); 3-5% (fair); 6-8% (good); 9-10% (excellent). 4. Final exam (40%): 0-10% (poor); 11-20% (fair); 21-30% (good); 31-40% (excellent). The exam will consist of multiple choice questions and open questions (mini essays).

10 Evaluation rubrics for written pieces (home works, term papers, open questions (mini essays) in the exam) Poor Fair Good Excellent Reasoning (makes sense) reasons reasons reasons reasons inconsistently consistently consistently and consistently and and with little and with with general with thorough understanding. limited understanding. understanding. understanding. uses complex ideas. Communication communicates communicates communicates communicates unclearly. with some clearly and clearly and clarity and precisely. precisely. The understanding. student uses complex forms. Organization of Not clear, not Clear but not Clear and well- Clear and well- ideas well-structured. well-structured. structured. structured. The student reports ideas in complex ways.

11 Evaluation rubrics for presentations and participation in discussions Oral Presentation Scoring Rubric This rubric is based upon the scoring rubric used by the Writing Outcomes Program at Southeast Missouri State University. Excellent Designates a Clearly Excellent speech. A. Focus: the thesis is very clearly stated; the topic is narrowed sufficiently; the specific audience has clearly been taken into account when delivering the speech B. Organization: the speech has a clear introduction that catches the audience s attention effectively and is connected to the whole; effective transitions recap each main point; the conclusion effectively summarizes the speech and is related to the whole C. Development: all main points begin with a clear topic sentence; all main and supporting points are supported by specific and highly effective examples/evidence; the main and supporting points all relate to each other D. Style: language is memorable; language usage is felicitous; tone is appropriate E. Delivery: eye contact is effectively established with the audience; gestures and paralinguistic cues are used to reinforce particularly important ideas; no excessive use of vocalized pauses (e.g., ah, um ); student is extremely articulate F. References: outside sources and incorporated logically, insightfully, and elegantly; sources are documented accurately Good Designates a Still Impressive speech. A. Focus: the thesis is clearly stated; the topic is limited; the specific audience has clearly been considered when delivering the speech B. Organization: the introduction catches the audience s attention and is connected to the whole; transitions signal movement to another point; the conclusion is clean and related to the whole C. Development: almost all main points begin with a clear topic sentence; the main and supporting points include concrete, specific evidence/examples; almost all the main and supporting points relate to each other D. Style: most language is memorable; language usage is accurate; tone is appropriate E. Delivery: eye contact is established with the audience; gestures and paralinguistic cues are mostly used to reinforce particularly important ideas; some vocalized pauses are used; student is articulate F. References: source material is used logically and proficiently; sources are accurately documented Fair Designates an Adequate speech. A. Focus: the thesis is clear or clearly implicit; the topic is partially limited; it is implied that the specific audience has been considered when delivering the speech B. Organization: the introduction and conclusion are clear and somewhat related to the whole; some transitions are used C. Development: some main points begin with a clear topic sentence; some main and supporting points include specific evidence/examples; most main and supporting points relate to each other

12 D. Style: most language is somewhat memorable; language usage is correct; tone is usually appropriate E. Delivery: eye contact with the audience is somewhat established; gestures and paralinguistic cues are sometimes used to reinforce particularly important ideas; several vocalized pauses are used; student is somewhat articulate F. References: source material is incorporated logically and adequately; sources are documented accurately for the most part Poor Designates a Developing speech A. Focus: the thesis is unclear; the topic is only partially limited; the specific audience has been partially considered when delivering the speech B. Organization: the introduction and conclusion may be ineffective and not related to the whole; the logical plan must be inferred, as no transitions are used C. Development: some main points have stated or implied topic sentences; some main points are supported by specific evidence/examples; some main and supporting points relate to each other D. Style: language is not very memorable; language usage is generally accurate; tone is often inappropriate E. Delivery: eye contact with the audience is hardly established; gestures and paralinguistic cues are seldom used to reinforce particularly important ideas; vocalized pauses are used frequently; student is not very articulate F. References: source material is incorporated but sometimes inappropriately or unclearly; sources are documented accurately only occasionally SCORE 0 Designates a speech that has clearly not been developed on the assigned topic or makes no attempt to answer the given question or relate to the given topic.