Russias Economic Transition :: Russian History Historical Communism Essays

Russia Economic TransitionIn August of 1991, the collapse of the communistic system in the USSR andits neighboring republics occurred. Out of the smoke emerged fifteen refreshful(a)republics and a union known as the Commonwealth of Independent States. These refreshedregimes faced formidable obstacles. The collapse brought massive inflation whichin do work forced the economy into a spiraling decline and a give in of almostworthless value. Many community were quick to point the riff at their communist aside, and even more eager to lay blame. handed-down communist ideology was toprovide for every individual an equal summate of goods and services, thuscreating a state of equality amongst the populous (Leveler, 16). Many peoplefelt as if their current hardships could be blamed on the communists and their frugal policies, specifically their Core-Periphery plan.The communist sponsored Core-Periphery sparing policy that wasevident in Russia was rather simplistic in nature. The th eory, traditionally usedto describe inter-continental trading and production, was fit for use in theRussian economic zones. The theory was as follows Areas which band thecapital (core region), usually rich in one material or another, would be usedfor the extraction of raw materials. These materials would then be shipped O.K.to the capital in order to be manufactured into goods. From there, themanufactured products would be shipped back to the surrounding regions(periphery region) for resale. The citizens of Russia were surviving on thissystem, but barely. The Core-Periphery policy was not efficient, nor effective,for usually a product needed on one cheek of the federation, was produced at theother end. Factors such as transportation apostrophizes and enough use of humanresources was very inefficient and cost-consuming. Strong influences from theworld urged Russia to call for the transition into the market-oriented economy. Thisseemed tempting, for the market-oriented economy preached individual wealth andprosperity. Seeing no break-dance solution to their current economic woes, Russianpolicy-makers took the plunge.By 1995, 4 old age since the beginning of the transition into a market-oriented economy, no satisfactory economic improvment had outcomen form.Productivity in many states such as Turkmenistan and Belarus keep to fall(Table 2), and inflation was still at high levels. Many new Russian capitalistsin the regions chose to exploit what had already been exploited in the past rawmaterials. Looking to make a fast income, these new Russian capitalists soldwhatever they could get their hands on, for practically no cost at all (Co-Existence, 146). Expropriation of state property, shady deals, and corruptionwere rampant. Productivity in industries such as agriculture declined as farmersdid not want to take care of their land (Co-Existence, 146).