Essay is about the period of transition economies in Russia. Main problems and difficulties of it are also discribed.

Essay by jevgenisUniversity, Bachelor'sA+, December 2003

download word file, 11 pages 4.6

Downloaded 176 times

A transition economy is understood as process of transition from socialist to market economy. The main feature of transition economy is that none of the mechanisms of coordination system is dominant: the central planning system does not work anymore, and the market mechanisms are yet to start working to the full power. The market reforms include three stages: macroeconomic regulation, privatization and structural reforms. Particularly, in Russia the transition to the market economy was very painful. Some points will exactly show why some of the problems occur. At the same time we will try to analize them and sometimes try to give a proper solution to the problem.

Part 1

The twentieth century for Russia is the century of economic shocks and great experiments. Not a long time ago one of them - construction of a socialist society has failed. Now it is necessary frequently to hear, that in all troubles are guilty democrats, disorganized "good" socialist economy.

It is far from being so. The backlog USSR's economy was appreciable already in the sixties years. By the nineties, the economic machine of the Soviet Union has reached the inertia. From a beginning 80 years were clear, that without radical changes in economy nothing would work. In that time it was still possible, having accepted reasonable measures, to reconstruct a planned economy, to put it on market rails and do without such recession of manufacture, inflation, decreaseof a standard of living. Some economic programs gave such opportunity (" 500 days " for example).

The history has developed differently, and the management of Russia had not to reconstruct economy, but to build a new one. It has appeared to be an extremely difficult task: USSR represented common economic organism and the economic connections were broken; it was impossible to supervise economy...