Foreign Policy and Current Issues- Russia Flashcards
First few years of the Russian federation
Very difficult. Characterized by a great deal of uncertainty regarding the regime’s future. Any regime change creates legitimacy issues. The change in leadership between Yeltsin and Putin also made it difficult to follow continuous threads in policy over the years, although alternating between reform and authoritarianism is an old theme goes back to the days of the tsars.
Biggest challenge the Soviet Union faced in 1991
Insurmountable economic problems.
Perestroika
Reforms by Mikhail Gorbachev. Primarily consisting of market economy programs inserted into the traditional centralized state ownership design of the Soviet Union.
Never fully implemented.
“Shock therapy”
By Yeltsin. Created chaotic conditions that resulted in a small group of entrepreneurs running the economy.
1997
The bottom fell out of the economy when the government defaulted on billions of dollars of debts. The stock market lost half its value, and threatened to topple other markets around the globe.
People suffered from sudden introduction of the free market and unemployment rates soared.
1997-2007
Russian economy steadily improved, particularly in the new areas of privatized industries, but it suffered a tremendous blow when oil prices plummeted in 2008.
GDP
Russia ended 2008 with a GDP growth of 6%.
2008
Russian stock market dropped 70%
Companies couldn’t pay loans-
Government responded with a rescue plan of over $200 million for the financial sector.
Oil and gas
Today Russia’s economy is ruled by huge oil and gas reserves, and the corporation (mostly private) that own them.
Economic priorities in 2009 by Medvedev
Improving: - Infrastructure - Innovation - Investment - Institutions Reducing state's role in the economy. Reforming the tax system and banking structure. Diversify the economy.
Privatization vs. state control
Privatization:
-Medvedev announced pans to sell state asset.
State control:
- Putin shifted the emphasis back to a state-capitalist model, with the government playing a strong role in the economy.
Hegemony
The Soviet Union held hegemony over huge portions of the world for much of the 20th century, and when it fell apart in 1991, that dominance was broken.
1990s
A time of chaos and humiliation. Had to rely on load from the US to keep the economy up.
Putin redefined Russia’s place in the world
1) New interpretation of the county’s relationship with the west.
2) Role among the former Soviet States.
Confederation of Independent States
United the fifteen former republic of the Soviet Union. Russia is the clear leader of this group.
Trade agreements bind them together, but nationality differences keep them from reaching common agreements.
Will never be as strong as the European Union.