China encourages good labour freedom and it is reported at 63.4% while Russia has an unfree environment for labour and this is set at 50.8%. The problem with this aspect of labour freedom is that it affects the social positioning of a country. For example, labour freedom implies labour wages, financial security and employment rate in an economy that can impact the status of the country to a greater extent (Heritage, 2017). It is evident from this graph that the business freedom in Russia is good when compared to China.
Russia is currently in an aim to invite more traders and investors to take part and develop the economy (Trading economics, 2017). On the other hand, China has already developed in its business structure. This has called for tightening of business freedom to maintain the same level of imports and exports. Russia now seems to be an interesting and futuristic place for new businesses to enter and enhance profitability when compared to China.
The findings have shown that Russia is the mirror of China. They largely differ in their requirements and current economic conditions. An interesting variable that influences the economic indicators of the countries is consumerism. This aspect is directly associated with variables like imports, exports, tax rates and business freedom. China is regarded as a country of trade. It survives in the global economy because of the large workforce and the work patterns that encourage immigrants to lead a sustainable life. On the other hand, Russia is in its development phase and needs a lot of investment in business to achieve financial security and enhance the GDP growth every year.
Consumers were once the stakeholders in Russia to develop its economy (Iakhontov, 1932). After a financial currency, it is observed in 2006 that the oil prices have started to fluctuate and the currency has also been undervalued. The inflation and poor depreciation rate have led to reduced consumerism. The oil wealth was used to raise funds from banks and stock market. A normal growth of consumerism is expected to reach a minimum of 3% according to Forbes (2017) but in Russia, it is only 1.5% since 2013 which is a low record. There is only a 0.6% growth on monthly basis in the last three years and it is expected to consume more time to change this flat consumerism structure to a developed one.