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The complex demands of the modern economy and inflexible administration overwhelmed and constrained the central planners.The volume of decisions facing planners in Moscow became overwhelming.It is also the second-largest exporter of petroleum.Russia has a large and sophisticated arms industry, capable of designing and manufacturing high-tech military equipment, including a fifth-generation fighter jet, nuclear powered submarines, firearms, short range/long range ballistic missiles.Since 1986 Mikhail Gorbachev attempted to address economic problems by moving towards a market-oriented socialist economy.Gorbachev's policies had failed to rejuvenate the Soviet economy, though.Russia's vast geography is an important determinant of its economic activity, with some sources estimating that Russia contains over 30 percent of the world's natural resources.

Economic performance estimate on seven measures: gross domestic product growth, budget deficit and government debt for 2012; economic recovery – output compared with the pre-crisis peak; change in debt since 2009; change in unemployment from 2009 to 2013; and, finally, the deviation of the current account from balance.The cumbersome procedures for bureaucratic administration foreclosed the free communication and flexible response required at the enterprise level for dealing with worker alienation, innovation, customers, and suppliers.From 1975 to 1985, corruption and data fiddling became common practice among bureaucracy to report satisfied targets and quotas thus entrenching the crisis.It was based on the recommendations of the IMF and a group of top American economists, including Larry Summers.