Russian Economy and Society at the Turn of the Century
The course is designed to study the features of the political structure of modern Russia. It contains both general information on the institutional, procedural and value components of the political system and public policy in Russia, as well as a description of the problems, contradictions and prospects for the political development of the country. The course contains three main modules: (1) the political system and regime in Russia: state institutions, political parties, civil society; (2) the public policy process in Russia: the mechanisms for elaborating, adopting and implementing policies and decisions; (3) directions and problems of economic and social policy in Russia: development based on stabilization. The course is aimed at those listeners who want to gain systematic knowledge of politics in Russia, as well as those who are focused on studying Russia's political development in complex and uncertain contexts. Studying the course students can choose the level of the course (general or in-depth), focusing on video material, information, discussions, forums, evaluations and interactive communication with teachers. The advanced level of the course development assumes the active participation of students in discussions, forums and project assignments. The overall mission of the course is to develop students' objective political knowledge about Russia and their ability to make critical scientific analysis and assessment.
Today's video is dedicated to the Russian economy and
society at the turn of the centuries.
The contemporary political developments in Russia are often seen as
the outcomes of the transformations of Russian society and public policy
that occurred when Vladimir Putin became the President of the Russian Federation.
And many people very often to compare today's Russia with so-called crazy 90s,
when most of the citizens had really negative experience
of the inefficient, liberal economic reforms, and outcomes of these reforms.
Let's focus on the economic and social situation of late 90s and
beginning of 2000s in Russia.
As a result of inefficient liberal economic reforms that were started in
1992 Russian economy was very turbulent.
The scope of the reforms that was called shock therapy, because of the market
economy's solutions were implemented in a very short period of time.
Although the hyperinflation that was determined by the liberalization of prices
in 1992 was finally stabilized, the inflation rates still was rather
high by the end of the 90s, and especially comparing to the Western countries.
Russian ruble was also overvalued because the government tried to maintain its
exchange rate and really they believed that it could maintain the inflation rate.
The productivity of Russian enterprises was also at the low.
Thus Russian economy and foreign currency reserves were dependent on the oil prices.
As the federal budget was always deficit the government had to borrow funds from
private investors via state bonds or get tranches from International Monetary Fund.
By the way, as later was uncovered, a tranche of 5 billion disappeared.
We have no evidence if it was stolen or not but still the story is really
detective and it disappeared on the eve of the meltdown called Default.
For instance, at this slide you can see the dynamic of the key
macroeconomic indicators in the late 90s.
Accompanied with external economic shocks, such as Asian financial crisis and
the decrease of oil prices on the international markets,
the negative trends of Russian economy led to Default in August 1998.
Russian economy reached the bottom, but this also gave a basis for
the recovery and economic development in the beginning of 2000s.
The reforms and economic instability of 90s also resulted in very negative
situation in Russian society.
This slide is dedicated to key aspects
of the Russian social development by late 90s.
The divergence of the society.
As a result of liberal economic reforms, privatization,
liberalization of prices, the society became really diverged.
A lot of people became really poor and
a large class became below the poverty line.
The society was also marginalized.
Marginalization means when people lose their social status but
didn't get the new one.
Professors, doctors, they quit their jobs and started to work on the market,
started to do some other professions, and this was also the crucial issue for 90s.
There was the high unemployment rate because of liberal economic reforms.
A lot of enterprises became bankrupt and just disappeared.
The life expectancy also reduced.
There were a lot of people who left the country,
who immigrated to the Western countries.
A lot of people died because of drug addiction and so on.
So you can imagine how crucial the situation in Russian society was.
Moreover just add the Chechen wars and
prominent political crisis, and then you will realize the whole
picture of the Russian economic and social situation at the turn of the centuries.