Russia.2 - Russia Political Economy and Development A...

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Russia Political Economy and Development
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A difficult transition Post 1991 Legacies from Soviet and even tsarist times. International economy/politics
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Regaining somewhat of a foothold in post 1999 era.
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State and Economy Weakness of state institutions.
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Weak Tax collection Legal enforcement of contracts Protection of ownership rights Control of crime and corruption Creation of a reliable banking system
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Soviet system Land, factories, major assets controlled by the state. Prices controlled by the state. Environmental quality was horrific. Emphasis on large projects: dams, power plants, etc. Many highly polluting industries emphasized.
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1986: Chernobyl
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Attempts at Siberian development costly Will likely diminish with global climate change?
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Strict controls on foreign economic links and contacts.
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Low quality goods/inefficiencies
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Accomplishments Relatively rapid industrialization. Social welfare Mass education Relatively low levels of inequality Advances in science and space development
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Ultimately Unable to keep up with advances in the west- provisions of consumer goods….
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Yeltsin advocates: shock therapy. Radical market reform.
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Russia.2 - Russia Political Economy and Development A...

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