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Sectors of the Russian economy

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I. Introduction

1. Why We're Interested in Examining Modern Russia

We want to understand the process of transition from a capitalist, or a semi-feudal society, to a socialist, or communist society. In fact, we believe that it is possible to formulate a theory about such process of transition. In order to do that, we need to do two things. One: we need to examine the previous theories which were formulated in this respect. Two: we need to examine the states which have accomplished a socialist revolution in XX century. The first task we're in a process of completion in a separate work. Here, we take up the second task. 

We're interested in examining Russia because this is the first stable state which has had a socialist revolution. (The Paris Commune of 1871 was the first state with a socialist revolution, but it didn't last long).

In examining modern Russia, we follow the methodology first advanced by Lev Trotsky in his "Revolution Betrayed", 1936. This consists in: 1. examining the economy, 2. examining the processes taking place inside the society, the social phenomena, such as sexual relations, the educational system, etc. 3. examining the internal and external policy of the state.

Here, we would like to take up the first part of the problem, the economy.

2. Sectors of the Russian Economy

According to Wikipedia, the most important parts of the Russian economy are:


  1. Fuel and energy complex
  2. Defense-industrial complex
  3. The food processing industry
  4. Mechanical engineering, machine-building industry
  5. The car building industry
  6. The aviation industry
  7. The chemical industry
  8. The metallurgy

To this list we can add:

9. The information technologies, specifically software development

10. Nanotechnologies.

Viewed from the point of view of "primary-secondary-tirtiary" sectors, the economy of Russia is as follows:


  1. Agriculture - 4.1%
  2. Forestry, hunting, fishing - 4.7%
  3. Industry - 31.6%
  4. The "service sector' - 63.7%

Electrical-energy-Russia

Electrical energy production in Russia, by year

Oil-processing-Russia

Initial oil processing in Russia, in millions of tons

Russia, being a modern society, is now at the stage of "information revolution". Nanotechnology is the next step. Russia can not be called "a post-industrial nation", for it doesn't live at the expense of other nations' labor, as for example is the case with the USA. The most important regularity which we observe in case of Russia is the following: the real workers' wage
Wages-Russia

Real wages in Russia, as % to the level of 1991

Steel-production-Russia

Steel production in Russia, in millions of tons.

correlates with the actual level of industrial production
. Decrease or increase of industrial production has a direct relationship to the real wages of the population.

In general, we can make a hypothesis: that sector of social production which defines the standard of living for the majority of the population defines the social-economic stage of the given society.

3. The Most Important Sectors of the Russian Economy

The structure of the Russian export consists of the following major categories:

name value, in billions of U.S. dollars percent of the total
oil 152 32
gas 66 14
diesel 33 7
fuel oil 31 7
black metals 21 5
machines 20 5
oil products 12 3
semi-finished products from carbon steel 11 2
coal 8 2
raw aluminum 7 2
weapons 7 1
rolled carbon steel 6 1
raw nickel 5 1

(Source: the Federal Customs Agency of Russia)

As in the export of Russia the main place is occupied by oil and gas, let's analyze the "fuel and energy complex" of Russia. According to one Russian economist, this complex constitutes 51% of the modern Russian budget.

The most important sectors of the fuel and energy complex are (in the order of importance):

  1. the electrical energy industry
  2. the gas industry
  3. the oil industry (constituting approx. 20% of all energy resources)
  4. the coal industry (18% of energy, in 2005)

Potential sources of energy are:

  1. solar energy - energy of the sun, and hence in essence nuclear energy 
  2. wind energy - indirectly, this is solar energy
  3. geothermal energy - energy of the hot core of the Earth

Continued: The Electrical Energy in Russia

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