Russia

In: FP, Heft 125, S. 20-25

Abstract

Many misconceptions about the state of affairs in Russia have surfaced since the end of the Cold War; this article seeks to correct these errors. The first erroneous idea is that the Russian economy has collapsed. This is not true; Russians have simply fled low quality in domestic products & have embraced high quality foreign goods. Also, the idea that the market economy was too much too soon is erroneous; problems such as excessive state intervention, corruption, high tax rates, etc, actually point to the need for more reforms. In addition, privatization is not to blame for these deficits; instead, it has provided 70% of the nation's GDP. Russia collects taxes & in fact has instituted a stable flat income tax of 13%, which most people pay. Russia's infrastructure is actually improved: Russia does not need foreign investors. The health care crisis is not as extreme as some say. Russia was not lost by President Clinton. Democracy & the media are the answer to control Russia's elitist tendencies. Bibliog. R. Larsen