March 31st 2008

March 31st 2008 - March 31st 2008 1991- soviet union...

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March 31 st 2008 1991- soviet union essentially died. Even before the end of SU you can see the formation of Russia as yelzin came to power. - he had been a member of the communist party and a functionary for decades. He became the president in 1991 His policies varied over time and stayed in power until 1999 If we look at his policies in respect of the economy and respect of the political system you can see significant breaks from the old soviet regime. Throughout eastern Europe in the 1990s there was a willingness to accept the market. The free play of market forces. Yeltzin embraced the mythology of the free market. Idea of freeing up the Russian economy was to simply abolish many of the practicesthat had been entrenched under the soviet union, ex he ended subsidies. How do you turn state owned enterprises into privately owned enterprises. The transition from state owned to private, gave opportunity for organizations and individuals to get incentive Organized crime began to take control of large proportion of enterprises. Organizations that operate outside the law and do business outside the normal business mechanisms. Instead of what are considered to be the approved methods of business. There were attempts in the 1990s to ease control from state owned to private owned. People given vouchers to purchase shares of enterprises. People could use these vouchers to invest in industry While there was a kind of spread of ownership, its much higher at the end of the 1990s then at the begginign of the 1990s. The great bulk of shares were owned by a concentration of individuals. At the same time that these small allotments of vouchers were distributed, there was a system that gave managers majority ownership of state owned companies. This distorted the Russian economy. In the 90s, under yeltzin, the economy did badly. Because of period of transition , it was made difficult because of the way in which in was carried out. Many western companies saw Russia as an opportunity to invest. Although you see the intrustion of companies like hotel, fast food and consumer chains in Russia in early 1990s, there was no substantial western investment to kickstart the economy.
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March 31st 2008 - March 31st 2008 1991- soviet union...

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