Russian Public Policy

Public Policy/Current Issues• The Economy

– At the heart of the Soviet demise in 1991– Perestroika reforms – market economy programs inserted into

traditional centralized state ownership design– “Shock Therapy reforms” – created chaotic conditions that

resulted in a small group of entrepreneurs running the economy– In 1997 economy collapsed when government defaulted on

billions of dollars of debts– Russian stock market lost half its value, threatened global

markets as well– Ruble lost value rapidly, by 2002 it took more than 30,000 rubles

to equal one dollar– The overall economy did see slight improvements in 1999–2000– In recent years economic growth has been better and standards

of living have improved, this has largely been a result of increased oil prices

Foreign Policy

• Relations with Former Republics– Confederation of Independent

States (CIS)– Russia is the clear leader of

organization– Is not nearly as successful,

economically and politically, as the EU

– Bonded together by trade agreements

– Tensions of nationality issues– Putin’s meddling in Ukrainian

election of 2004 was cause for concern

-- Invasion of Georgia in 2008

• Relations with the World– Adjustment period for

Russia following Cold War and loss of superpower status

– Offered aid and foreign investment by U.S.

– Accepted into the G-7 (now known as G-8)

– UN Security Council permanent member

– Russia set to join the WTO in 2008