In August of 1991, the collapse of the communist system in the USSR and its abutting republics occurred. Out of the smoke emerged fifteen new republics and a nitty-gritty known as the Common wealthiness of In hooklike States. These new regimes face formidable obstacles. The collapse brought massive inflation which in fold forced the economy into a spiraling decline and a kingdom of almost outlayless(prenominal) value. some populate were firm to point the finger at their communist past, and purge more than intense to lay blame. Traditional communist political orientation was to provide for both(prenominal) noteworthy an equal amount of high-priceds and services, thus creating a state of equality amongst the populous (Leveler, 16). Mevery people felt as if their true hardships could be blamed on the communists and their economic policies, specific solelyy their Core-Periphery blueprint.
The communist sponsored Core-Periphery economic policy that was evident in Russia was quite simplistic in nature. The conjecture tradition every(prenominal)y employ to describe inter-continental craft and production, was adapted for use in the Russian economic z iodins. The theory was as follows; Areas which surround the capital (core region), usually rich in mavin material or another, would be used for the bloodline of raw materials. These materials would then be shipped plump for to the capital in order to be manufactured into goods. From there, the manufactured products would be shipped back to the surrounding regions (periphery region) for resale. The citizens of Russia were surviving on this system, but b arly. The Core-Periphery policy was not efficient, nor was effective, for usually a product demand on integrity side of the federation, produced at the other end. Factors such as tape drive costs and adequate use of human resources were very uneconomical and cost-consuming. Strong influences from the world urged Russia to compel the transition into the commercialize-oriented economy. This seemed tempting, for the merchandise-oriented economy preached individual wealth and successfulness. Seeing no better solution to their trus cardinalrthy economic woes, Russian policy-makers likewisek the plunge.
By 1995, 4 years since the start-off of the transition into a food market-oriented economy, no satisfactory economic service had taken form. outputivity in many states such as Turkmenistan and Belarus continued to walk out (Table 2), and inflation was take over at high-pitched levels. Many new Russian capitalists in the regions chose to exploit what had already been exploited in the past; raw materials. Looking to make a fast income, these new Russian capitalists sold any(prenominal) they could conk out their hands on, for practically no cost at all (Co-Existence, 146). Expropriation of state property, shady deals, and corruption were rampant. Productivity in industries such as agriculture declined as farmers did not requisite to take care of their land (Co-Existence, 146). Nobody had m wholenessy to bribe their goods, so they questioned as to whether or not they should take the date to produce them. The economy was contracting and in turn, people were genuinely getting poorer.
The newly sepa located states were yearning for economic suppuration and prosperity. This would hopefully bring stability and a practically needed improvement in the standard of living as closely as individual wealth. This however, has not been the case. Many of the breakaway republics give way actually experienced visualizeable negative growth. Many of the republics do the transition to the market economy hoping to make the individual citizen wealthier. In many of the republics this did not actually take place. In 1995, all but 2 of the 15 countries saw their net exports per capita fall drastically. Lithuania, once with a net export per capita rating of 49.2, was experiencing one of -54.1 in 1995 (Table 1). On average the citizens now had less than before.
Many countries began to realize that they were in many ways still dependent on so-called mother Russia. The past Core-Periphery policy had made them intemperately rely on internal municipal trade. Being null more than satellite states in the centrally planned economy, these countries were traditionally used for the extraction of materials or the production of a singular labor. Their economies were not diversified. Traditionally supplies had to be brought in, and this was still the case. Import statistics in the newly independent republics view seen a drastic go on in innates. In 1992, the Ukraine with a population of approximately 51 million people imported a total of 2.2 billion million dollars worth of goods (Table 1). In 1995 however, the Ukraine with a population less than what it had been in 1992, actually imported more; 5.6 billion dollars worth of goods (Table 1). This rise in imports was also evident in atomic number 31, Lithuania, and Uzbekistan (Table 1). For these countries, trade more than they are actually exporting is proving to be a tough economic obstacle to overcome. In order to import, they start had to borrow heavily from international sources. Without exports, they confuse been lacking equal funds to make these re-payments. Diversification was not happening quick enough to help them cope. Many feared that their debts give become so ample, that no matter what diversification occurred, it leave behind be excessively late, and thus making is almost impossible to repay what they brace borrowed.
The economic transition occurring in Russia has also led to political strife. Diplomatic relations amid many of the republics and the Russian nation withstand been drastically reduced, if not completely severed. Ukraine and Georgia have officially laid out in their constitution that they will have no formal ties with their Soviet past (McLelland 108).
The Ukraine was well-off to border one of the besides Soviet access points to a large body of water; the pitch blackness Sea. It was from this port that the actor Soviet Union established one of its larger naval divisions, known as the Black Sea Fleet. Consisting of over 1700 warships of dissimilar sizes (McLelland 63), this fleet was one of the most dreaded in the world. aboard those ships, there were approximately 430 thousand employed operational personnel (McLelland 66). Indirectly, in areas such as food production, and maintenance stave at the shipyards, there were approximately 15 thousand people employed (McLelland 66). When the dissolution occurred, the Russian government declared that the Black Sea would fall under its permanent influence. To the newly form Republic of Ukraine, this was very alarming. To lose the Black Sea would immoral to lose all the jobs that were directly or indirectly associated with it. keen that the upcoming years may be harsh in terms of economics, the Ukraine was not readily willing to accept a sharp blow to its employed work force. The Ukraine already had an unemployment rate of 7% (McLelland 24), and this was straining the limited social safety nets. The finishing thing the Ukraine was prepared to do was pay out more to its people without getting anything in interpret. The Ukrainians were yearning for a future day free of any Russian grip. The Russians, on the other hand, were still deeply in favor of upholding their Tsarist ancestor?s conquestial territorial gains. Ultimatums were sent back and forth surrounded by capital of the Russian Federation and the Ukraine. Neither side was willing to budge. Finally Russia backed down, and control was left to the Ukraine. Nevertheless, during that period of stalemate, Russo-Ukrainian relations, diplomatic and more importantly economic, suffered a great lose. Slander and many outcries of corruption had been directed at many of the policy makers in both countries. Trade between the two nations has also dropped to an all time low. Out of Russias total exports, only a meager 1.7% gets shipped to the Ukraine (Dart, 117). In these harsh generation of economic transition in the region, one would expect that the two countries would be more willing to co-operate for the goal of greater good.
The Russian republic has also seen its fair share of strife; internally. boisterous economic times and less than admirable results from the transition to the market oriented economy have paved the way for much political opposition. Communists, the former leaders of the Soviet Union, were one of the starting time political movements to wage war against the newly formed great(p) government. Traditionally, communist ideology preached that no citizen will be in any greater position of status or economic wealth that that of another citizen (Perdues, 66), and that all citizens shall live with ample food on the plate, and low worries as to life (Perdues, 93). For the communists the time of economic hardship was heaven sent. Capitalizing on the citizen?s disgust in the shape of the country would be no challenge. This has led to the communists waging wars inside of the Russian parliamentary house. The Duma as it is known is where most legislation and debate over domestic and foreign policy goes on. It is in this institution that the Communists have on numerous occasions attempted to gather support to accuse the liberal government. The Communists goal: dissolution of the current government, and establishment of the old. quite of attempting to reform and fine tune the new economic policies, they wished to return to policies more consistent with the Communist ideology. The Communists are not alone. In Russia itself, there has been a spawning of over 12 new political parties (Co-Existence, 147) that pose threats to the current governments stability. Amongst those parties, over 86% of the individuals do not approve of the market-place economy (Co-Existence, 149).
Though Russia is constantly hindered by economic downfall in many aspects that was not to say that all is bad. Some of the new countries, which have embarked on the long itinerary to growth, have in fact verbaliseed signs of improvement. Many of them have realized that diversification is needed desperately. Both Uzbekistan and Georgia were traditionally used as resource extraction states in the Core-Periphery economic plan of the centrally planned economy. Since the establishment of independence, Uzbekistan now promotes a large degree of exploration, and thus has a large oil and boast industry (Blij, 321) they have also experienced growth in their new found service sector. Georgia is also experiencing diversification. With its racy lands, Georgia has harnessed its agricultural sector into producing tobacco, various fruits, and flush timber (Blij, 150). It also has a booming tourist industry because of its warm climate and scenic beauty (Blij, 150).
Recent statistics show that in the year 1995, because of this diversification, countries such as Uzbekistan and Georgia have drastically improved their overall Gross Domestic Product when compared to statistics recorded in 1992. Uzbekistan had a rating in 1992 of -11.1% and Georgia had a whopping -45.6%. In 1995, the totals showed signs of great improvement; both at -5.0% (Table 2). Contraction was still occurring, but at a slower rate. This in turn provided some hope. There was even a larger increase in the country of Armenia where the 1992 statistic for gross domestic product was -52.4%, and in 1995, it had improved to a +5.0% (Table 2).
The question of economic coexistence between Russia and its former republics still remains a mystery. There are many stronger, much more controversial step forwards in Russias republics, when it comes to the issue of economics, independence, and growth. Many of the citizens in the breakaway republics are not eager to have peace and open relations with their Russian counterparts. The republics have yearned for independence for some time now. Russian Census selective information showed the majority (60 to 80 percent) of the ethnic populations in Russia itself have support movements for more autonomy. The root of the turnaround in opinion from backing the federation to wanting sovereign nation states, has been caused by one simple reason; nationalism.
Oppressed for many years, culturally speaking, the republics cute to bring rise to their ethnic beliefs and values. The intelligentsia, long considered instigators threatening the Russian Federation, has been primarily concerned with cultural objectives, such as reason the use of national languages or controlling the local educational system, to ensure that history is taught from the perspective of indigenous peoples (Drobizheva, 2). There is a direct relationship between identity and peace. In an oppress society, ethnicity assumes a stronger role; however, when democracy and ethnicity are balanced, political stability is possible. As a result of a lack of republi stinker institutions and means for dialogue, the former Unions inhabitants were increasingly identifying themselves as members of ethnic groups sooner than as citizens of the Russian Federation.
Many of the breakaway republics are change with ethnic Russians; Kazakhstan 41%, Lithuania 8%, and the Ukraine 21% (Wells, 31). Hatred and intuition of these Russians is infecting growing. This is especially true when Russians are in the minority, as in the republic of, for example, where Russians comprise 30 percent of the population (Drobizheva, 2). In such circumstances, many perceive the Russians as developing a hyperidentity, characterized by a low degree of tolerance for others and a feeling of being threatened (Drobizheva, 3). Many of these Russians tend to consider themselves members of a higher ethnic group whose rights are supra others (Drobizheva, 3). This has fueled much anger towards the Russians, and in many regions the Russians are now being alienated. Due to past abuse of natural and human resources, oppression of fundamental rights such thought, voice, and opinion, has led to a severe feeling of disgust towards the Russians, and more importantly distrust.
In Short, the market economy did not bring any good to Russia immediately following its implementation. That is not to say however, that growth and prosperity will not occur in Russia and its former states. Statistics as recent as 1995 have shown that since 1992, on average, there has been an upwardly trend. Overcoming the obstacle of the core-periphery based economy that was imbedded in the Russian culture, and the ideology as well, has proven to be no easy task. Relying on imports has taken its toll on many of the nations. To combat this, the republics moldiness build their own production base, and produce goods domestically. Diversification will mean continued growth, and who is to say that the newly separated republics and Russia itself can not join forces in an effort to produce one large core zone, with the world as its periphery. As the nations utilizing the market driven economy continue to increase and reap its benefits, it was only a matter of time before the inefficient better communist system would have to topple. The key to success in the region is not to expect too much too soon. Ultimately everything must start somewhere, and in todays fast paced, market oriented global economy, so too must the newborn Russian capitalist baby.
WORKS CITEDDrobizheva, Leokadia. Democratization and Nationalism in the Russian Federation. Moscow:Russian Academy of Sciences, 1995Mclelland, Kelter. Russia At Its Peak. unsanded York:Puffin, 1995Russia And The Republics. Co-Existence. 1994-1995 Edition.
Leveler, Eisen. Crash and Burn. London:Earl Of Johnstonson, 1995Wells, Michael. Harsh Economic Transition. New York:The Regency, 1995Blij, Muller. geography; Realms Regions and Concepts. New York:Wiley And Sons. Eighth EditionPerdues, Gregory. The Red Menace?. Chicago:Bantam, 1995Dart, Simon. A Seat At The Global Table. London:Willamson, 1996
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