1. Economic and Social Development o After economic decline of 40% in the 1990s, Russia's economy stabilized in 2000 and 2004; higher oil and gas prices help Russia o The Legacy of the Soviet Economy • Communists came to power in 1917, and instituted centralized economic planning: a situation in which the state controls production • Soviet industry more successful than its agriculture Soviets added major industrial zones, many near energy sources and metals Moscow had fewer raw materials, but had some of Russia's best infrastructure, large pool of skilled labor, and demand for industrial products • Soviets developed a good transportation and communication infrastructure • Soviets had a massive housing campaign in the 1960s • Soviets made literacy virtually universal, and health care readily available; eliminated the worst of the poverty o The Post-Soviet Economy • The region has replaced its communist system with a mix of state-run operations and private enterprise • Independent republics negotiate for needed resources with Russian and each other
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