History shows that it is difficult to make anything but very short term economic predictions. People tend to extrapolate observations of the past into the future. However, human society is such an unpredictable and non-linear system that even the near future is full of surprises. Such unexpected factors have changed Russia from a ruthlessly built communist economy without the slightest tolerance for private property and private initiative, through the complete economic chaos of 1990s, into a market economy with a wide proliferation of small businesses, foreign trade and investment. Today Russia is an appealing location for business adventurers with an interest in this potentially huge market.
The problems of bureaucracy and corruption in the Russian economy are significant, and they even reach the highest government level in Russia. Even so, the present state of the Russian economy is much friendlier to foreign trade and more complimentary to the West than it has been since the Russian October Revolution of 1917. Russia today may have many drawbacks in the eyes of a Western citizen, but it is open, it is not hostile, it is much more stable than it has been, and it is growing quickly.
The dynamics of this market indeed give more than a hint of its potential. On the demand side, the Russian economy is growing at the annual rate of seven percent, reaching one trillion Euros in 2007, taking seventh place in the world while promising to climb to number five by 2009. Notably, export/import operations are growing much faster – with an increasing rate of 38 percent (!) since 2002.
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