A Pestel Analysis of Russia from the Perspective of a Pharmaceutical Company

1. Political environment of the Russian pharmaceutical industry

After breaking the Soviet Union, Russia Federation start they own play in the

international political scene as democratic, federal republic.

The Russian Federation consisted of 89 components, including regions,

autonomous republics, territories, and the two federal cities, Moscow and St.

Petersburg1. The government is consisting of three part the executive, legislature,

and judiciary. The first president of the Russian Federation was Mr. Eltsin. His rule

associates with political, economic and social instability of the country. In 2000 he

was replaced by young, ambitious and purposeful Mr. Putin and during all eight

years of Putin's "era" the role of the president was extremely increase. In 2008 the

presidents of Russian Federation become Mr. Medvedev, who continued the course

of previous president.

Nowadays the political power in Russian Federation is highly centralized and

controlled by the President and Prime Minister. They have great impact in all

sphere of policy. That led to the political stability. The policy became more

predictable.

In the domestic policy, Medvedev's government focused first of all in four

priorities: agrarian complex, housing, education and healthcare. All four branches

named as National Priority Projects and all that priorities has clear, vast and

formed aims. Thus, the Project "Healthcare" includes:

? Strengthening of Russia's health crisis, reducing morbidity, disability and

mortality.

? Improving the availability and quality of care.

? Strengthening primary health care, creating conditions for effective medical

care at the pre-hospital stage.

? Development of preventative health care.

? Meeting the needs of the population in high-tech medical care2.

Thereby, strong and advanced pharmaceutical industry will play a significant role

1 Bruce McKern, Lyn Denend, Victoria Chang, Katya Reuk «The competitive advantage of the Russia». Stanford

Graduate School of Business. 2008. p-4

2 http://www.rost.ru/projects/health/p01/p13/a13.shtml - official website of the Priority National Projects

and Demographic Policy

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in achieving project's goals.

However the crisis of 2008-2009 showed enormous dependence country on oil-gas

industry and the weaknesses of some vital industries such us pharmaceutical

branch. For this reason in the end of 2009 Russian government has developed the

strategy for the pharmaceutical industry over the next ten years, named "Pharma

2020". The fundamental objects of that strategy are:

? Increased supply of vital and essential drugs of domestic production, as well

as drugs to treat rare diseases of the Russian population

? Improving the competitiveness of domestic pharmaceutical industry.

? Promote the development and production of innovative medicines and

support the export of Russian medicine, including by developing additional

mechanisms for funding the original elaboration.

? Protection of the domestic market from unfair competition and leveling the

market access conditions for domestic and foreign manufacturers.

? Implementation of the technological modernization of the Russian

pharmaceutical