Building an Economy in a Nation
Here we will explore the trials and tribulations that any nation goes through while trying to reach
economic and political stability. To better understand the issues of a developing nation’s economy,
we are going to explore a developed nation that restructured its economy. This will help to provide
you with an outlet into our discussion on the barriers of these developing nations.
In 2003, Frontline did a story on Russia and the growth of capitalism. Even though today the
political structure in Russia is still a little shaky the main idea of this lesson is to look at how political
stability can factor into economic development. We will eventually be examining the periphery
(underdeveloped/developing) nations to determine patterns within the two.
Step One: Political geography review
A. What is command economic system?
B. What is a market economic system?
C. According to Chriswallerstein, what are the three factors of the capitalist system? (Chapter on
Political Geography)
1.
2.
3.
D. Initial Questions: What are some questions that are going through your head at this point?
Part II: Russia
http://www.pbs.org/frontlineworld/stories/moscow/thestory.html
Click on the above link watch the video. The video is approx. 20 minutes long. There is a synopsis
of the story below the link for the video but watch the video for the full effect.

What advantages and disadvantages did Russians experience with a command economy?
Advantages

Disadvantages
What advantages and disadvantages did Russians experience with a market economy?
Advantages
Disadvantages

What characteristics of a market economy have contributed to the divide between rich and poor?

Will conditions for the poor likely improve or get worse as market economic factors become more
firmly established in Russia? Why?
Part III: How to Make a Billion Dollars
http://www.pbs.org/frontlineworld/stories/moscow/billionaires.html
During the time of this story, just a handful of “oligarchs” controlled 85% of the nation of Russia.
Pick two of these “oligarchs” and view the bio information about them. Click on their pictures to
find out the information.
NAME
Oligarch #1:
Oligarch #2:
Background
Estimated worth
Russian economic resource
that made him rich
Political connections
Criticisms

What similarities and differences do you see among the oligarchs?

What economic incentives influenced the behavior of these men after the fall of communism?

How might corruption and questionable business practices affect Russia's transition to a
modern market economy?

What role does the government play in the new Russian economy?
Free Response Question:
A. What are three factors of a capitalist system?
B. How could what happen to Russia occur in developing nations?
C. What other problems might come to fruition in a developing nation that was not seen in Russia?
Explain.