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The Russian economy - transition from command economy to mixed.

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The Russian economy- transition from command economy to mixed The Soviet Union broke up in 1991. After that Boris Yeltsin came to power in Russia. At that time the Russian economy was a planned economy. It was going through an economic crisis. To overcome the economic problems attempts were made to transform the planned Russian economy into a free market one. Price controls on 90% of the goods were abolished. Foreign investors were allowed to invest in Russia and a number of other reforms were introduced. But the main problem was that the Russian economy, which in the previous years had almost been stagnated, was not ready for this sudden transformation. A newspaper report published towards the end of 1992 said that quite a large population of Russia did not even now how to use cheques. ...read more.


The Russian economy is at a stage where the strong gain and the weak lose. Analysis of the transition period If the transition period of the Russian economy was to be analyzed and if short-term effects are to be considered, then the obvious sufferers from this transition were the common people belonging to the lower strata of society and it was the rich industrialists who benefited. But if the other side of the coin was observed, had this transition not taken place, had the attempts to make the Russian economy a free-market economy not taken place only. Then in the long run it would have been the people or Russia who would have lost out. The point, which cannot be forgotten here is that globalization, is an evitable process today. If not immediately, in the near future full-scale globalization will happen and if the transition in the Russian economy had NOT taken place, Russia wouldn't have been ready for this process. ...read more.


History stands as a witness that no country has been able to progress independently or by self0sufficiency. In order to progress it was important for Russia to enter into the global-race. True the people suffered hardships, but the unemployment which today stands at an unofficial 18% would have been much higher otherwise. Because why would the people of Russia buy low quality goods form their local market at a higher cost when they would have got better quality goods form outside at a cheaper rate? True that Russia has a society wherein the strong gain and the weak loose but this is on a comparative scale. Because had it no been for this transition which in a way proved to be a good SHOCK to the Russian economy, Russia would have been left out like those countries where the local population still does not know who to use cheques, who are far away form the world secluded in an area which probably none of us know. ...read more.

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