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If we act now to save the rouble, we will be helping ourselves too

Article Abstract:

There are some signs of improvement in the Russian economy, but there are still considerable obstacles to economic revival. The economy remains over-regulated, and barter is still commonplace. The key economic issue is whether the rouble is overvalued. Economic crisis in Asia is prompting investors to turn away from the rouble, and it may become impossible for Russia to defend its exchange rate without assistance. A devaluation would make it possible for the left wing to make significant gains in the parliamentary elections in late 1999, and could also create problems for other emerging economies.

Prices and rates, Column, Ruble (Russia)

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The great rouble rescue bargain

Article Abstract:

On Jan 2 1992, Russia joined world trade and changed to a market economy, but to avoid massive inflation and possible political instability it needs Western economic help. With output down by 10%, and consuming more than it produces, Russia faces hyperinflation which could topple the present democratic government. Being in a similar position to Poland, Russia also needs a stabilisation fund, but the West seems uninterested. The fund would be equivalent to one percent of NATO's budget which would not just guarantee peace, but would open up new markets and resources to the West.

Economic assistance, Foreign economic assistance, Free enterprise

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A change of heart in Moscow

Article Abstract:

Russian President Boris Yeltsin removed Yegor Guidar from the post of Prime Minister and appointed Viktor Chernomyrdin. Chernomyrdin was a Communist Party bureaucrat until he became Minister of Gas in Feb 1985. In May 1992 he became Minister of Energy. Although he supports the reforms he has been connected with anti-reform steps. He is unwilling to jeopardise the state's industrial production. If he increases subsidies it will stop the privatisation process and lead to higher inflation.

Management, Economic policy, Appointments, resignations and dismissals, Yeltsin, Boris, Chernomyrdin, Viktor, Perestroika

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