Russia's Economic Woes

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Written by:

Cynthia P


Date added:

May 4, 2014








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5 / 1384


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The last president of the Soviet Union, Mikhail Gorbachev, declared on national TV the formal end of the Union and handed over full powers of the Russian Federation to Russian president Boris Yeltsin. Within a day, the Supreme Soviet also disbanded itself and Soviet institutions gradually faded out or became transformed into democratic institutions...
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From this political downfall arose the new democratic Russian Federation, followed by the first democratic governmental institutions since 1917. In order to expedite the transition from a communist to a capitalist society, Yeltsin implemented his policy of "shock-therapy" with the intent of making the market economy work almost overnight by suddenly releasing state control of prices and currency controls...
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