Test 2 Flashcards
What were the four main pillars of Yeltsin’s reform?
1) Lifting price control
2) Encouraging private businesses
3) Privatizing state-owned enterprises
4) Opening economy to international influence
What are joint-stock companies?
Businesses whose capital is divided into shares that can be held by individuals
What is insider privatization?
Transformation of state owned enterprises into joint-stock companies where managers and employees have control
What is a privatization voucher?
A certificate issued to Russian citizens that could be used to purchase shares of companies
Why did Russian businesses turn to the mafia for protection?
The state’s lack of efficient tax collection meant that they could not properly enforce health and safety standards
What is pyramid debt?
A situation in which governments take on progressively higher interest rates to pay off existing debt
What is state capture?
The ability of firms to bribe the the state to change regulations to their benefit.
What are the four priorities of the National Projects?
1) Health care
2) Education
3) Housing
4) Agriculture
What is the purpose of the National Projects?
To address social inequalities and increase birth rate
What has Putin done to increase birth rate?
Large bonuses for families having second children
