Pestel Analysis Russian Federation
4.1.1 PESTEL Analysis
This part of the dissertation will analyze main political, economic, social, technological, environmental and legal issues within the Russian Federation. All of the Interviewees outlined the political aspect as the most important when investing into Russia, however the Author would like to acknowledge that the economical and legal factors have a critical weight in the issues of FDI, therefore their analysis will play a comprehensive role in the thesis, assuming that the initial reader has no background knowledge of the environment. Please refer to section titled Analytical Tools (3.2.3) for the theoretical underpinning of the model used.
PESTEL Analysis
Political
◊ New democracy
◊ Internal conflicts: Terrorism
◊ External conflicts with neighbours and powerful economies, e.g. USA, UK
◊ Corruption
◊ Nuclear power
◊ Strong political presence in Eurasia
◊ Good diplomatic relations with China Economic
◊ Rich in natural reserves
◊ Stabilized economic condition
◊ Dependent on export of oil and gas
◊ Large size of GDP
◊ Double digit inflation
◊ Uneven distribution of income
◊ Comparatively low levels of FDI
◊ Volatile currency
Social
◊ Highly skilled workforce
◊ Social unrest due to diversity
◊ Wide class divisions
◊ Decreasing population
◊ Low life expectancy (men) – 59 years Technological
◊ Strong industrial sectors
◊ Powerful think-tank for scientific research (especially military)
◊ Outside regional centres IT communications are poorly developed
Environmental
◊ Low awareness of ecological issues (global warming, recycling)
◊ Nuclear waste deposits in Siberia
◊ History of environmental accidents – Chernobyl
◊ Harsh climate conditions
◊ Vast territory is hard to manage
◊ Coastal access is vast but strategically more costly Legal
◊ The legal system is new
◊ Bodies of conflicting and intertwining laws
◊ Federal government system makes the legal co-ordination complicated
◊ Poor
This part of the dissertation will analyze main political, economic, social, technological, environmental and legal issues within the Russian Federation. All of the Interviewees outlined the political aspect as the most important when investing into Russia, however the Author would like to acknowledge that the economical and legal factors have a critical weight in the issues of FDI, therefore their analysis will play a comprehensive role in the thesis, assuming that the initial reader has no background knowledge of the environment. Please refer to section titled Analytical Tools (3.2.3) for the theoretical underpinning of the model used.
PESTEL Analysis
Political
◊ New democracy
◊ Internal conflicts: Terrorism
◊ External conflicts with neighbours and powerful economies, e.g. USA, UK
◊ Corruption
◊ Nuclear power
◊ Strong political presence in Eurasia
◊ Good diplomatic relations with China Economic
◊ Rich in natural reserves
◊ Stabilized economic condition
◊ Dependent on export of oil and gas
◊ Large size of GDP
◊ Double digit inflation
◊ Uneven distribution of income
◊ Comparatively low levels of FDI
◊ Volatile currency
Social
◊ Highly skilled workforce
◊ Social unrest due to diversity
◊ Wide class divisions
◊ Decreasing population
◊ Low life expectancy (men) – 59 years Technological
◊ Strong industrial sectors
◊ Powerful think-tank for scientific research (especially military)
◊ Outside regional centres IT communications are poorly developed
Environmental
◊ Low awareness of ecological issues (global warming, recycling)
◊ Nuclear waste deposits in Siberia
◊ History of environmental accidents – Chernobyl
◊ Harsh climate conditions
◊ Vast territory is hard to manage
◊ Coastal access is vast but strategically more costly Legal
◊ The legal system is new
◊ Bodies of conflicting and intertwining laws
◊ Federal government system makes the legal co-ordination complicated
◊ Poor