A comparative analysis of the government Transitions as a determinant of Income Distribution in Russia and Albania in the past 50 years

A comparative analysis of the government Transitions as a determinant of Income Distribution in Russia and Albania in the past 50 years.

Introduction

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Economic development in a country is regulated by a number of factors. The countries of interest in this literature review are Russia and Albania. These are countries in the southern part of Europe and partly Middle East. Russia and Albania gained independence almost at the same time in the 1950s. Since them the two countries have been on the road to economic development. Various factors restrained or boosted this noble move. Some of the factors that influence economic growth include politics, country resources and government policies among others. This review is based on journals authored and posted in business source premier and Econ lit. The information from these journals is analyzed below.

Norris, E, (2006). Comparative Economic Studies

Norris begins by emphasizing that decentralization is a key move towards successful economic growth. Russia has succeeded in this implementation, resulting into wide spread of resources within the country. Norris view is true to a great extent. This is because a country develops a uniform spread of strength in all the states and provinces. This ensures that employment and job opportunities are available in all the places. A point of weakness however is real especially with a multiple tribe country like Albania. National unity can be put at risk with such level of decentralization.

Fidrmuc, J, (2003). Economic reform, democracy and growth during post-communist transition

Fidrmuc argues that Russia and Albania as communism states embraces political liberalization which comes hand in hand with democracy. According to the author, the economic growth which was realized came about because of the communism. This brought about high levels of loyalty to the states.  Russia and Albania remained in the communism style for long time. The countries increased in power that the rest of the world countries were threatened.  However good this style could be, it has serious effects to the economic empowerment of the state. Most communist states rarely have foreign investors. This is because the government policies do not favor such independent ventures.

Yeon, B, (2004). Journal of Comparative Economic Studies

 Yeon embraces the government policy which permits barter in Russia. This is one of the laws that the government initiated during the early years after independence. Barter trade may have been a good idea but it took the country into economic recess. Valuation becomes impossible with barter trade. Russia sunk into serious inflation and the central bank literally went bankrupt. Introduction of barter also has serious shortcomings on the banking sector. This is because money loses its value when other mediums of exchange are also in use. Barter trade may have been of advantage in the ancient days. With it came satisfaction of goods and services to the consumers and a social forum to exchange ideas and thoughts.

Saving, J, L. (1997).  Privatization and the Transition to a Market Economy

This journal basically stresses on the issue of privatization of businesses within a state. This happens through the sale of state corporations and parastatals to the local and foreign investors. This is common in the sale of shares and bonds. Communist states open up their economies to the global market. Russia was the first country to carry out this policy. This enabled it to join some of the global unions like NATO and EU. Albania joined later. Such a move opened up the two countries into having better managed businesses and more profits. One problem which comes with privation is the low pick up rates by some staunch communist state. Training and awareness campaigns are important before implementation.

Dr. Marta M (1997) .Economic and political transition in Albania

Albania is a country that has been in existence for a very long time. This country was monopolized with communist as the main ruling style. Albania embraced expansion of market economy. This move made this small state to be known globally, and after the Second World War, it joined the European community. This is a positive move. The government transition towards market economy greatly boosted economic stability of Albania. The radical change in the government and market institution must however be carried out with proper policy awareness to the citizen.

REFERENCE

Dr. Marta M (1997) .Economic and political transition in Albania

Fidrmuc, J, (2003). Economic reform, democracy and growth during post-communist transition

Norris, E, (2006). Comparative Economic Studies

Saving, J, L. (1997).  Privatization and the Transition to a Market Economy

Yeon, B, (2004). Journal of Comparative Economic Studies

 

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