Policy Proposal for Economic Reform in Russia

2756 Words6 Pages
bulb-icon

Recommended: Economic reform 1865 russia

Policy Proposal for Economic Reform in Russia

Despite making a recovery after the 1998 market crash, Russia remains weighted with numerous holdovers from the Communist era that keep its economy from taking advantage of free-market reforms. In short, Russia has not prospered under capitalism because it has not yet discovered it. In order to do so, the Russian government must engage in extensive reform in several key areas: improving the rule of law, creating stable monetary policy, and ending a policy of favoritism to particular businesses. Engaging in these reforms would lower the extremely high transaction costs of doing business legally, stimulating a wave of new investment and wealth creation within Russia, as well as encouraging investment from abroad.

While the causes of Russia’s economic problems are numerous, the absence of a rule of law causes enormous unpredictability and uncertainty that is the primary barrier to economic growth. The regulatory mess caused by presidential decrees, legislative changes and numerous bureaucracies putting out contradictory rulings is just one aspect of this problem. The court system, which is supposed to be a neutral arbitrator of private disputes, is highly publicized, and even worse, is used by the governments to silence critics and unfavorable companies.

One of the major challenges to reform is the uncooperative nature of the bureaucratic apparatus in carrying out laws and policies enacted by the executive. While Yeltsin and Putin have generally been in favor of free-market reforms, the bureaucrats meant to carry out their policies are often rich oligarchs who stand to lose financially or politically from reform. To combat this, Putin has replaced most of the Yeltsin-era ruling...

... middle of paper ...

...-07-98.html

9. Dmitry Pinsker, “TV6 saga nears final episode.” The Russia Journal http://www.trj.ru/index.htm?obj=5321

10. James A. Dorn and Ian Vasquez. Ending Russia's Chaos, September 9, 1998 http://www.cato.org/dailys/9-9-98.html

11. Daniel J. Mitchell, “Tax Reform: Russia, 1; United States, 0,” March 21, 2002 http://www.heritage.org/views/2002/ed032102.html

12. Rose Brady, Kapitalizm : Russia's Struggle to Free Its Economy, New Haven, Conn. Yale University Press, 1999.

13. Martha De Melo, and Gur Ofer, “Private Service Firms in a Transitional Economy: Findings of a Survey in St. Petersburg”

Studies of Economies in Transformation, 1014-997X ; Paper No. 11: 1994.

14. William C.Gruben, "Dollarization: The Greenback Goes Global," Federal Reserve Bank of Dallas Expand Your Insight, March 1, 2000 http://www.dallasfed.org/eyi/money/0003.html

Show More
Related

  • The Legacy of Russia and the Soviet Union - Authoritarian and Repressive Traditions that Refuse to

    1785 Words  | 4 Pages

    ...oved to be singularly influential and daunting. This is, perhaps, the greatest obstacles to achieving true democracy in Russia—the authoritarian and repressive traditions that refuse to die out with the passage of time.

    Read More

  • Assess the impact of World War I on the Fall of the Romanov Dynasty

    968 Words  | 2 Pages

    Moss, W., 2014. A History of Russia Volume 2: Since 1855. 1st ed. London, England: Anthem Press London, pp.112-113.

    Read More

  • Theme Of Socialism In The Jungle By Upton Sinclair

    1297 Words  | 3 Pages

    Mau, Vladimir. " The road to 'perestrokia': economics in the USSR and the problem of

    Read More

  • The Effects of the Perestroika Reforms on the Dissolution of the Soviet Union

    1832 Words  | 4 Pages

    One of the most significant events in the twentieth century was the dissolution of the United Soviet Socialist Republic (USSR) in 1991. The reason why this event was so significant was because it ended the tension between the Soviet Union and the United States of America, the Cold War, and the reign of one of the greatest world powers at the time. There were many reasons for the collapse, and it has been postulated that the Perestroika reforms had the most significant effect. The reforms, implemented by Mikael Gorbachev, were meant to address the dire financial and economic situation the country was facing as a result of the incompetent Stalin regime. Though these reforms were created with the best intentions, unfortunately they failed, eventually leading to great dissatisfaction with Gorbachev’s leadership. The Communist Party was so displeased with the performance of their leader that they staged a coup d’état to remove him from power (History.com). Thus, by the end of 1991, the Perestroika reforms directly lead to the dissolution of the Soviet Union due to the collapse of the economy, lack of infrastructure of modernization, and failure to move the communist party towards democracy. One of the largest goals of the reforms was to address the broken economy.

    Read More

  • America Burning Impact

    2352 Words  | 5 Pages

    Fire safety education is a crucial aspect of fire prevention. The general public needs to know how big of a threat fire is to them and how they can do things in their everyday lives to improve their safety, as well as preventing the threat of fire to begin with. The commission also realized that it was critically important that people know how to properly act once a fire has started. It is important that people have the knowledge to act quickly, safely, and effectively. When people don’t understand fire they can react in many negative ways such as panicking, not evacuating effectively, or by trying to fight a fire that they are not going to be able to extinguish. All these human reactions can decrease safety and end with tragic results. In the commission’s report they approximate that nearly 70 percent of all building fires were due to people acting carelessly because they did not understand the fire dangers that were present. The commission cited studies like one conducted in southeast Missouri. In the southeast Missouri community, a huge emphasis was put into public fire safety education because the fire death rate of the community was much higher than the national average. After increasing fire safety education in the community it was no surprise that the rate of deaths and injuries decreased

    Read More

  • Firefighters are Brothers

    829 Words  | 2 Pages

    Firefighters are more than friends. You can't fight fires with friends. To fight fires you need a brotherhood. The men and women of the fire service across the globe consider each other family, this is one of the grand traditions of the fire department. Firefighters are constantly looking out for one another, thinking about the things they do and how it may affect the other’s lives and safety. Life safety is of the highest priority in the business of fire rescue. To achieve a safety standard there are many tasks that fire personnel are expected to carry out, for both a personal and a team related purpose. One of these tasks is the daily inspection of the fire apparatus upon arrival to the fire station. This task is with most certainty the most essential process that fire personnel are responsible for in order to get through the shift safely and efficiently.

    Read More

  • Power and Corruption in Charles Dickens´ A Tale of Two Cities

    658 Words  | 2 Pages

    During the 1800s, the aristocracy of England and France lived in luxury and possessed an enormous amount of power in the society while peasants live in poverty. Dickens links the two countries with the theme of how history repeats itself. Dickens compares the social rankings, rulers, and events of the two countries and warns how if the English aristocracy did not change their ways, what happens in France would happen to them. In the novel, Dickens portrays the character, Monseigneur as an individual character as well as a social class of France. Monseigneur is a character who Dickens portrays as the entire class of the French aristocracy in the way of which he abuses his power. Dickens describes how the Monseigneur was having chocolate prepared for him by four men who are wearing gold watches as peasants were starving and dying. Dickens uses the actions of the Monseigneur to represent the entire population of the aristocrats in the city of St. Antoine. Another way in which Dickens shows how the Monseigneur was corrupt was how he appointed people to be officials not by their skill but by the way they would appraise him or by their status. Dickens foreshadows how France would become corrupt over time from the action...

    Read More

  • Religion Revival in the 19th Century

    706 Words  | 2 Pages

    The latter half of the 19th century marked a time of major changes that sweep the American landscape. Changes included: the second industrial revolution, the third great awakening, abolitionism, immigration, and new religious movements (NRMs). This time period is referred to as the “Gilded Age”; there was rapid economic growth which spurred wage increases, immigration, and technological advances.

    Read More

  • Spanish Civil War and World War II

    1845 Words  | 4 Pages

    History is not a collection of unrelated events, but it is instead an account of various causes and their effects. World War II was not an isolated event. It was a product of numerous events in Europe which included the Spanish Civil War. Spain prior to World War II was an area of crucial political and strategic importance. By analyzing the events of the Spanish Civil War, the events of World War II can be understood in greater detail. Hitler’s confident foreign policy, the quick surrender of France, the forging of unlikely alliances, and the diverse ideological state present in Europe can be understood more comprehensively by looking at the Spanish Civil War. The events of the Spanish Civil War changed the political atmosphere of Europe; these events influenced the beginning of World War II.

    Read More

  • The Iranian Revolution and the Russian Revolution

    1667 Words  | 4 Pages

    Wood, A. (1986). The Russian Revolution. Seminar Studies in History. (2) Longman, p 1-98. ISBSN 0582355591, 9780582355590

    Read More

  • U.S. Russia Relations

    1383 Words  | 3 Pages

    Russia, a vast country with a wealth of natural resources, a well, educated population, and diverse industrial base, continues to experience, formidable difficulties in moving from its old centrally planned economy to a modern market economy. President Yeltsin's government has made substantial strides in converting to a market economy since launching its economic reform program in January 1992 by freeing nearly all prices, slashing defense spending, eliminating the old centralized distribution system, completing an ambitious voucher privatization program, establishing private financial institutions, and decentralizing trade. Russia, however, has made little progress in a number of key areas that are needed to provide a solid foundation for the transition to a market economy.

    Read More

  • Who are the Russian Oligarchs?

    1722 Words  | 4 Pages

    Although this phenomenon has been diminished in modern political history, it is still actively present in one country: the Russian Federation. Russia has always been seen as an exceptional country with its bizarre history and unfathomable politics, where the oligarchs are believed to possess most of the wealth of the Russian society. Their case is more than intriguing as they exercise enormous influence both on the economy and politics. How did these privileged people come into power? What is their actual impact on the economy and to what extent was their political influence restricted in the past few years in the Russian Federation?

    Read More

  • Fire Fighting Technology

    903 Words  | 2 Pages

    Joe Lombardo of the Garden City Fire Department made it a point during fire school to emphasize that a good firefighter will always maintain a clear head even in the most harrowing of circumstances. This task may be difficult in situations where an enormous amount of information must be transmitted to effectively fight the fire. Recent innovations in fire scene communication technology have allowed for more information to be transferred to the appropriate firefighters before and during the initial attack. The following outline some of the more important innovations to fire communication technology:

    Read More

  • Contemporary Religion in America

    791 Words  | 2 Pages

    America is a melting pot of culture and race. Thus, bringing many different types of religious faiths to today’s society. Whether the beliefs are ancient, new, reconstructed or if people have no faith at all, it is all in America. It is difficult to scrutinize one religion without it concerning another. All religions have diverse beliefs ranging from; the belief of...

    Read More

  • Essay On Firefighting

    832 Words  | 2 Pages

    Fire equipment has come a long way. Safety has become standardized which has helped reduce the health risks that are associated with fighting fires.

    Read More

More about Policy Proposal for Economic Reform in Russia

Open Document