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Russia

Russia. Communism & the end of the Czar Gorbachev Yeltsin Putin – The return of the Czar?. End of the Czar. By the end the Czarist rule, Russia’s economy was still pre-industrial Low standard of living 2/3 of labor force was agriculture-based Culturally fragmented

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Russia

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  1. Russia Communism & the end of the Czar Gorbachev Yeltsin Putin – The return of the Czar?

  2. End of the Czar • By the end the Czarist rule, Russia’s economy was still pre-industrial • Low standard of living • 2/3 of labor force was agriculture-based • Culturally fragmented • 100 nationalities & languages • Dispute over how to modernize • Model economy on the West (capitalism) • Build an alternative path (socialism/communism)

  3. Bolsheviks won • Marxism: capitalism will eventually fail b/c it exploits the proletariat (workers) • Profit is stealing from workers (surplus value--what they SHOULD get paid) • Leninism: Communist Party is the Vanguard of the Proletariat & will be catalyst for the revolution • Basic Tenets of Communism • State ownership of the means of production • Central Planning – develops plans for production & economic growth • Democratic Centralism: everyone gives their input, but leaders make the decisions

  4. Soviet Economy • Soviet economy was in decline since 1970s • Had to import grain & meat for the first time • up to 1/3 of the USSR’s farm output spoiled • Low standard of living • Though some communist countries (like Czechoslovakia) had a decent standard of living

  5. Gorbachev’s Reforms • Perestroika—restructuring • Cut subsidies; allowed free-market pricing • Glasnost – openness • More personal freedom to promote more individual initiative • Had real debate & dissent • Results • Inflation • Resurgent nationalism • Rise of criticism against govt • Led to Coup attempt, blocked by Yeltsin • Yeltsin dismembered the USSR

  6. Russia under Yeltsin • New Constitution • Strong President--can rule by decree • appoints Prime Minister w/ Parliament’s approval • Bicameral Federal Assembly • Council of the Federation –represents regions • Duma –combo of proportional representation & Single-Member districts • Federal System • Sent the military to attack the Duma

  7. Economic Reforms • Shock Therapy • Free market liberalization • Privatization (Klepto-capitalism) • Wealth confiscation, not wealth creation • Anything of real value was sold off to Yeltsin’s allies for a fraction of what it was worth • Capital flight to the west --West was complicit in corruption • Failure of Shock Therapy • 1998 –Economic chaos (devalued ruble) • 7 Oligarchs control ½ the economy • Helped get Yeltsin elected • De-industrialization of Russia • Falling living standards

  8. Putin -- Return of the Czar? • Cracked down on corruption • Arrested some of the oligarchs • http://news.bbc.co.uk/2/hi/business/3042850.stm • See photo on the next page • Re-invaded Chechnya after series of 1999 apartment bombings in Moscow • Economy has improved • Mostly due to higher oil prices Won re-election in 2004 • Still controls the media; many doubt it was a free & fair election

  9. The Economists’ view on Putin’s crackdown of the oligarchs • http://www.economist.com/agenda/displayStory.cfm?story_id=2170839

  10. Problems today • Fear is a major force in Russian politics • Falling standard of living –fear of poverty • Fear of crime & terrorism (blame Chechens) • Lack of a democratic political culture • Putin has made his reputation as someone who will crack down on corruption • Is popular despite not-so democratic credentials • Environment – much of former Soviet bloc countries has this same problem • Alcoholism

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