By Simon Pirani
Simon Pirani investigates the interplay of strength, funds and other people in Russia through the presidencies of Vladimir Putin and his successor Dmitry Medvedev. Profiling the Putin workforce, together with contingents from the protection companies and pro-market fiscal "reformers," Pirani argues that the commercial progress it presided over through the oil growth was once one-sided. the space among wealthy and terrible widened. Now the increase is over, inequalities will multiply additional. in addition to explaining Russia's monetary trajectory, the ebook offers a different account of the social events which are operating opposed to an more and more authoritarian govt to alter Russia for the higher. this is often the best advent for undergraduates imminent Russia for the 1st time and those that desire to know the way Russia will switch through the monetary problem.
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Extra info for Change in Putin's Russia: Power, Money and People
Furthermore, Russia not only had too few people, but also it had too much land over which those people were spread. Through the ages, the size of Russia’s territory compared with its population has exacerbated the weakness of its state. In the context of the capitalist world economy into which both Russia and China were integrating, these objective factors, as well as policies, made a difference. F RO M Y E LT S I N TO P U T I N 43 YELTSIN’S SECOND TERM AND THE FINANCIAL CRASH (1996–99) The crisis that swept the Russian money markets in 1998 was an extension of the East Asian crisis in 1997.
In August 1988, the USSR Council of Ministers fixed in law a range of tax exemptions and other economic privileges for Komsomol associations and cooperatives. In December that year, the legal basis was laid for internal tax havens or ‘special economic zones’, and by the summer of 1990, eleven such zones were operating. Private and ‘hybrid’ economic organisations accounted for 9 per cent of employment in the USSR by 1990, and 15 per cent by 1991. Probably the most successful Komsomol business, Menatep, formed the basis for Menatep bank, the foundation stone of the empire of Mikhail Khodorkovsky.
Capital Flight: The Ransacking of Russia The true cost of Russia’s integration into the world economy is best reflected in the gigantic wave of capital flight it suffered in the 1990s. Capital flight is the abnormal movement of money capital, caused by a country’s economic problems and lack of faith in its government and financial system. Economists measure it in various ways: roughly, it is the transfer of assets denominated in one country’s currency into assets denominated in a foreign currency, above and beyond normal trade and investment flows.