Russias Economic Transition :: Russian History Historical Communism Essays

Russia Economic enactmentIn August of 1991, the check of the communist system in the USSR andits close republics occurred. Out of the smoke emerged fifteen newrepublics and a union cognize as the Commonwealth of Independent States. These newregimes faced formidable obstacles. The collapse brought massive inflation whichin turn forced the economy into a spiraling decline and a press out of almostworthless value. many people were quick to point the finger at their communistpast, and crimson more eager to lay blame. Traditional communist ideology was to render for e precise somebody an equal amount of goods and services, thuscreating a take of equality amongst the populous (Leveler, 16). Many peoplefelt as if their authentic hardships could be blamed on the communists and their frugalal policies, specifically their Core-Periphery plan.The communist sponsored Core-Periphery economic policy that wasevident in Russia was quite simplistic in nature. The theory, traditionally usedto describe inter-continental trading and growthion, was adapted for use in theRussian economic zones. The theory was as follows Areas which surround thecapital (core region), usually rich in one material or another, would be usedfor the declivity of raw materials. These materials would then be shipped backto the capital in ordering 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 living on thissystem, but barely. The Core-Periphery policy was not efficient, nor effective,for usually a product needed on one side of the federation, was produced at theother end. Factors such as transportation costs and adequate use of humanresources was very inefficient and cost-consuming. Strong influences from theworld urged Russia to look at the transition into the market-oriented economy. Thisseemed tempting, for the market-oriented economy preached individual wealth an dprosperity. Seeing no better solution to their current economic woes, Russianpolicy-makers took the plunge.By 1995, 4 years since the beginning of the transition into a market-oriented economy, no satisfactory economic improvment had taken form.Productivity in many states such as Turkmenistan and Belarus continued to fall(Table 2), and inflation was muted at high levels. Many new Russian capitalistsin the regions chose to wreak what had already been exploited in the past rawmaterials. Looking to make a fast income, these new Russian capitalists soldwhatever they could beat up 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 floriculture declined as farmersdid not want to take care of their land (Co-Existence, 146).