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Page 1: East Europe: political giant vs. economic lagging Economic Geography I. International Business bachelor study programme (BA) Spring term 2014/2015. CUB

East EuropeEast Europe: political : political giant vs. economic giant vs. economic

lagginglagging

Economic GeographyEconomic GeographyI. International Business bachelor study programme (BA)I. International Business bachelor study programme (BA)Spring term 201Spring term 20144/201/20155..CUB Department of Economic Geography and Futures StudiesCUB Department of Economic Geography and Futures Studies

dr. Jeney Lászlódr. Jeney LászlóSenior lecturerSenior lecturer

[email protected]@caesar.elte.hu

Page 2: East Europe: political giant vs. economic lagging Economic Geography I. International Business bachelor study programme (BA) Spring term 2014/2015. CUB

Delimitation and main Delimitation and main features of East Europefeatures of East Europe

Page 3: East Europe: political giant vs. economic lagging Economic Geography I. International Business bachelor study programme (BA) Spring term 2014/2015. CUB

East Europe: physical geographical aspect

East European Plain– 4.5 mn km2

– European part of former SU (except: Karelia, Western peripheries North and Central Europe)

– Highest point: Podolia 515 m West: no natural frontier state

borders33

Page 4: East Europe: political giant vs. economic lagging Economic Geography I. International Business bachelor study programme (BA) Spring term 2014/2015. CUB

East Europe: military aspect

During Iron Curtain

After Iron Curtain United Nations

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Rounds:– Only Russia (political Core)– East Slavic countries: RU+BY+UA– Former SU (East Slavic + Baltic states+MD)– Former SU+East Central Europe (V4)– +DDR– Post-socialist countries: Balkan Peninsula too

NATOEast Europe NATO

East Europe

East Europe

Page 5: East Europe: political giant vs. economic lagging Economic Geography I. International Business bachelor study programme (BA) Spring term 2014/2015. CUB

Religious feature: Eastern Christianity

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Area of Eastern Christianity (orthodoxy)

Centre: from Constantinople (Byzantium) to Moscow

But:– East Balkan

Peninsula too

– Atheism– Religious

minorities

East Europe

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HHome of Eastern Slavsome of Eastern Slavs

Slavic countries– Eastern (RU, UA, BY)– Western (PL, CZ, SK)– Southern (former YU, BG)

Eastern Slavs: offshoots of the Broader Rus’

East Slavic Countries– European Russia (except: Karelia,

Kaliningrad)– Belarus (except: Western part)– Ukraine (except: Transkarpathia,

Galicia, Podolia)

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EastEurope

Page 7: East Europe: political giant vs. economic lagging Economic Geography I. International Business bachelor study programme (BA) Spring term 2014/2015. CUB

Economic development of Economic development of RussiaRussia

Page 8: East Europe: political giant vs. economic lagging Economic Geography I. International Business bachelor study programme (BA) Spring term 2014/2015. CUB

Historical development

Predecessor of SU: Russian Empire (incl. Belarus, Ukraine, East Poland too)

After WWI: Ukraine + Russia (incl. Belarus) 1922: Soviet Union (Russia, Belarus, Ukraine) From 1991: Russia, Ukraine and Belarus

– Independent Russia remained considerable power Presidents

– Boris Yeltsin (1991–2000)– Vladimir Putin (2000–2008)– Dmitry Medvedev (2008–2012)– Vladimir Putin (from 2012)

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Page 9: East Europe: political giant vs. economic lagging Economic Geography I. International Business bachelor study programme (BA) Spring term 2014/2015. CUB

1990s: economic hardship

Transition to capitalism: economies shrank– Inefficient,

uncompetitive factories

– Most industries downsized dramatically shutting down

1998 global financial crisis– Depreciated

the Russian ruble

– Further lowered living standards

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Page 10: East Europe: political giant vs. economic lagging Economic Geography I. International Business bachelor study programme (BA) Spring term 2014/2015. CUB

2000s: economies began growing again

Average 6–8 % GDP growth

Russia– GDP: WR10.– Bureaucratic reforms– Soaring global prices

for oil and natural gas– However: dependence

on oil and gas (80% of exports, 32% of GDP in 2007 13% in 1999)

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Page 11: East Europe: political giant vs. economic lagging Economic Geography I. International Business bachelor study programme (BA) Spring term 2014/2015. CUB

Foreign direct investments

1990s: inflow was prevented– Corruption– Poor infrastructure– Unwieldy bureaucracy

RU 1991–2001– FDI: 18,2 bn $ (China: 46 bn $)– Per capita FDI: 15 $ (1149 USA, 224 Hungary)

After mid 2000s: FDI in Russia expanded rapidly– 2008: 70 bn– Investors: CY, NL, L, UK

Sectors– Mainly oil, natural gas, metal ores– Also automotive industry (VW Kaluga, Ford and Japanese

companies) 2006: first time foreign cars outsold domestic cars 1111

Page 12: East Europe: political giant vs. economic lagging Economic Geography I. International Business bachelor study programme (BA) Spring term 2014/2015. CUB

The knowledge of the past is required to understand the present

Page 13: East Europe: political giant vs. economic lagging Economic Geography I. International Business bachelor study programme (BA) Spring term 2014/2015. CUB

Who founded Russia?

Page 14: East Europe: political giant vs. economic lagging Economic Geography I. International Business bachelor study programme (BA) Spring term 2014/2015. CUB
Page 15: East Europe: political giant vs. economic lagging Economic Geography I. International Business bachelor study programme (BA) Spring term 2014/2015. CUB

Rurik the Viking

Page 16: East Europe: political giant vs. economic lagging Economic Geography I. International Business bachelor study programme (BA) Spring term 2014/2015. CUB

The first Russian states (principalities):

Kievan Rus, Rus of Novgorod Rus = assembly of the

people

Page 17: East Europe: political giant vs. economic lagging Economic Geography I. International Business bachelor study programme (BA) Spring term 2014/2015. CUB
Page 18: East Europe: political giant vs. economic lagging Economic Geography I. International Business bachelor study programme (BA) Spring term 2014/2015. CUB
Page 19: East Europe: political giant vs. economic lagging Economic Geography I. International Business bachelor study programme (BA) Spring term 2014/2015. CUB

Lithuanian –

Polish Grand Dutchy

Page 20: East Europe: political giant vs. economic lagging Economic Geography I. International Business bachelor study programme (BA) Spring term 2014/2015. CUB

Tsar Peter the Great

Catherine the Great

Page 21: East Europe: political giant vs. economic lagging Economic Geography I. International Business bachelor study programme (BA) Spring term 2014/2015. CUB

Black coal Great Britain (Wales) and Donetsk Basin (East

Ukraine)

Iron ore Sweeden (Kiruna) and Krivoj Rog (East Ukraine)

Page 22: East Europe: political giant vs. economic lagging Economic Geography I. International Business bachelor study programme (BA) Spring term 2014/2015. CUB

Donetsk Basin (East Ukraine) the Craddle of Russian Heavy Industry (German settlers invited)

Page 23: East Europe: political giant vs. economic lagging Economic Geography I. International Business bachelor study programme (BA) Spring term 2014/2015. CUB

Chernozyom (black) soil, dry continental climate

Page 24: East Europe: political giant vs. economic lagging Economic Geography I. International Business bachelor study programme (BA) Spring term 2014/2015. CUB

Ukraine, the Bread-Basket of Russia

Page 25: East Europe: political giant vs. economic lagging Economic Geography I. International Business bachelor study programme (BA) Spring term 2014/2015. CUB

Hungary

Poland - Lithuania

Turkey

Russia

Turkey

Territory of today’s Ukraine in the 18th – 19th centuries

Page 26: East Europe: political giant vs. economic lagging Economic Geography I. International Business bachelor study programme (BA) Spring term 2014/2015. CUB
Page 27: East Europe: political giant vs. economic lagging Economic Geography I. International Business bachelor study programme (BA) Spring term 2014/2015. CUB

HOLODOMOR (genocide) 1931 – 1933 Ukraine (USSR) death toll ~

7 million Ukrainian civilians

Page 28: East Europe: political giant vs. economic lagging Economic Geography I. International Business bachelor study programme (BA) Spring term 2014/2015. CUB
Page 29: East Europe: political giant vs. economic lagging Economic Geography I. International Business bachelor study programme (BA) Spring term 2014/2015. CUB

The vast majority of nationalities in today’s Ukraine

Page 30: East Europe: political giant vs. economic lagging Economic Geography I. International Business bachelor study programme (BA) Spring term 2014/2015. CUB
Page 31: East Europe: political giant vs. economic lagging Economic Geography I. International Business bachelor study programme (BA) Spring term 2014/2015. CUB

Russian speaking population from 10 to 90 %

Page 32: East Europe: political giant vs. economic lagging Economic Geography I. International Business bachelor study programme (BA) Spring term 2014/2015. CUB
Page 33: East Europe: political giant vs. economic lagging Economic Geography I. International Business bachelor study programme (BA) Spring term 2014/2015. CUB

Slavic relationship

Page 34: East Europe: political giant vs. economic lagging Economic Geography I. International Business bachelor study programme (BA) Spring term 2014/2015. CUB

Mutual intelligibility and common vocabulary of Ukrainian language compared to:

Belarusian: 84 %

Polish 70 %

Serbian: 68 %

Croatian: 68 %

Slovak: 66 %

Russian: 62 %

Page 35: East Europe: political giant vs. economic lagging Economic Geography I. International Business bachelor study programme (BA) Spring term 2014/2015. CUB
Page 36: East Europe: political giant vs. economic lagging Economic Geography I. International Business bachelor study programme (BA) Spring term 2014/2015. CUB

XX. Century Regional Polarization of the World

1900 – 1950 MULTIPOLAR

Page 37: East Europe: political giant vs. economic lagging Economic Geography I. International Business bachelor study programme (BA) Spring term 2014/2015. CUB

XX. Century Regional Polarization of the World

1950 – 1990 BIPOLAR

StalinLenin

Leonid Brezhnev

Nikita Khrushchev

Page 38: East Europe: political giant vs. economic lagging Economic Geography I. International Business bachelor study programme (BA) Spring term 2014/2015. CUB

XXI. Century Regional Polarization of the World

1990 – 2020 POST BIPOLAR

Boris Jelcin

Mikhail Gorbachev

Page 39: East Europe: political giant vs. economic lagging Economic Geography I. International Business bachelor study programme (BA) Spring term 2014/2015. CUB

XXI. Century Regional Polarization of the World

2020 – 2050 MULTIPOLAR

Vladimir Putin

Page 40: East Europe: political giant vs. economic lagging Economic Geography I. International Business bachelor study programme (BA) Spring term 2014/2015. CUB
Page 41: East Europe: political giant vs. economic lagging Economic Geography I. International Business bachelor study programme (BA) Spring term 2014/2015. CUB
Page 42: East Europe: political giant vs. economic lagging Economic Geography I. International Business bachelor study programme (BA) Spring term 2014/2015. CUB
Page 43: East Europe: political giant vs. economic lagging Economic Geography I. International Business bachelor study programme (BA) Spring term 2014/2015. CUB
Page 44: East Europe: political giant vs. economic lagging Economic Geography I. International Business bachelor study programme (BA) Spring term 2014/2015. CUB
Page 45: East Europe: political giant vs. economic lagging Economic Geography I. International Business bachelor study programme (BA) Spring term 2014/2015. CUB

3 billion $ and 5 years (Germans: 1941, Yanukovych: 2014

Sochi Olympics, )

25 km

Page 46: East Europe: political giant vs. economic lagging Economic Geography I. International Business bachelor study programme (BA) Spring term 2014/2015. CUB
Page 47: East Europe: political giant vs. economic lagging Economic Geography I. International Business bachelor study programme (BA) Spring term 2014/2015. CUB
Page 48: East Europe: political giant vs. economic lagging Economic Geography I. International Business bachelor study programme (BA) Spring term 2014/2015. CUB

Europe Asia

The dimension of Russia and the rest of Europe

Russia


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