. Today Russia is in a state of political and economic rebuilding in a capitalist system. When the Soviet Union officially split apart on December 26, 1991, one day after Gorbachev resigned from the leadership of the Communist party and the U.S.S.R., Yeltsin took the role of president.
During a meeting in July of 1990, leaders of the group of seven industrial Nations and the president of the European Community asked the International Monetary Fund and other United Nations economic agencies to study the economy of Russia and propose a more effective method of reforming the Russian economy. When the study was released in December it recommended that the Russians immediately release price control on almost all goods, instantly creating a free market in which the people could learn capitalism first-hand. They also recommended an auction of all government-owned corporations, beginning with smaller, easier to value companies, and they emphasized the need to lift restrictions on foreign trade.
The International Monetary Fund study also addressed the problem of Russia?s deficit, suggesting cuts in price subsidies and low-priority expenditures, such as administration. The government of Russia set a target deficit of two and a half to three percent of the gross domestic product. They have not accomplished this yet, but progress is being made. The transition of the economy of Russia has thrown the value of the ruble into intense fluctuation. In 1989, one United States dollar was worth approximately 2/3 of a ruble (Hoffman), in 1993, it was close to 1000 (Famighetti): and at the end of 1996 it was over 5,000. These comparisons translate into more than a 350% annual inflation rate. Many Russian business owners will not accept the ruble as payment. They prefer the stable American and European currency.
... article will evaluate the current performance of the economy of Russia. The 1998 Russian Economic Crisis After the collapse of the Soviet ... Poor management of the situation such as Russia’s Central Bank maintenance of the Ruble within a narrow range in the middle ... reforms, privatization, and review of international trade policy. When the ruble was devalued, there was a sudden increase in the price ...
Many of the Russian people thought that with the fall of the Soviet Union in 1991, the wealth and prosperity possessed by the inhabitants of many of the Western countries could be obtained in their near future. Unfortunately for the Russian people the promise of a better future never came true. The bulk of the countries wealth was taken away by a handful of Kremlin men, while the government disappeared into a deep pit of complicated politics. Russia?s 160 million inhabitants were quickly forgotten.
The truth is, Russians are no better off today, than they were when the last czar of Russia was ousted in 1917. Even though the fall of the iron curtain brought new freedoms to the people of Russia, most are striving so hard to just make a living, and survive daily life, they do not have the time to get involved in the elections that will effect their lives, and the lives of their children for decades to come. Per capita income for the average Russian worker in 1989 was approximately $3,000 (US equivalent), (Hoffman), to over $4,800 (US equivalent) in 1996. Over a six-year span, granted this is an increase, but actually paying for food and housing with such a low income is incomprehensible in US society today.
In the year 2000, Russians have watched helplessly as their savings disappeared, many of their banks closed their doors, and witnessed the bottom falling out of their struggling stock market; and goods have disappeared from grocery shelves, which has sent the middle class into a tale spin.
A recent news release from Moscow on August 2, 2000 stated that the President Vladimir Putin?s administration was trying to win control over the two main television stations that don?t belong to the state yet. If the state owns the media, the Russian people will only hear what the state approves for them to hear. This is just one example of the Russian society reverting back to its old Communist ways instead of moving toward a democratic society.
I believe the author?s views are valid when he talks about the fortitude and strength for which the Russian people have endured over the years. It seems to me that if the Russian people didn?t want personal freedom and economic security they would not have went through all of the trouble changing over their government system from Communism to Capitalism. An optimistic point of view would say the Russian people have the opportunity to build a better life and future. Unfortunately the reality in Russia today tells a different story.
... income, then there wouldn't be different demands. People today have different needs because of the difference in income. ... was a communist during the time of the Russian Revolution and World War 1 had strong views ... moment, which is to achieve the best in life, must be removed." Marx who was writing during ... probably have and want the same thing in life. If society earned a high-income then economy ...
Bibliography for Russia Today Goldston, Robert, ed. The Russian Revolution: World Cultures. Bloomsburg, PA: Learning and Evaluation Center, 1997. LoBue, Chrisoper. Capitalism in Russia ? An Economy in Transition //www.usaor.net/users/xlobue/TRANS.HTM>. Russia Today ?News- Kremlin Vying for Full Control over All Russian Television Say So.. 2 Aug, 2000