Ten Years of Economic Transformation in Russia -- and the West

The economic transformation in Russia took longer & was more problematic than originally assumed. Many problems were resolved only after setbacks, & some have not yet been solved. With regard to economics, the results of privatization are controversial, whereas in the political arena, the creation of an ownership class supporting the state has been achieved. Early attempts to stabilize the policy of currency & exchange rates failed to control inflation or create an economic upswing. These efforts, recommended by Western consultants overtaxed the Russian authority & led to the currency crisis of 1998. Since then, Russian economic policy has avoided some of the earlier mistakes, & since 1999, budget & currency policies have been aimed at total economic stability. Under Putin, an attempt has been made to try to make up for the delayed structural reforms. Russian statistics, which have been accepted by the West, exaggerate the drop in production related to the transformation, while accurately depicting the average standard of living, which, while it has not yet improved, has not catastrophically deteriorated either. 2 Tables. Adapted from the source document.