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From: "Frank Durgin" <[EMAIL PROTECTED]>
To: "michael" <[EMAIL PROTECTED]>
Subject: a possible duplicate.on Russia's problems
Date: Wed, 3 Jun 1998 21:13:07 -0400
Michael:
I stilll don't know what I'm doing here. My computer does not record
the items I sent> This item may have been sent a few minutes ago.
Best wishes
Frank
Novositi Daily Review [this day index] June 03, 1998, Issue 002
THE RUSSIA THAT WE LOST
Vsevolod SEMENTSOV
Moscow hosted an annual all-Russian conference entitled
"An Assessment of Russia's National Wealth" May 27-29. That
conference's results will, doubtless, be summed up in the near
future.
However, it's crystal clear even today that various facts
and statistics, which were cited by some conference delegates,
are really sensational.
D. Lvov, academic secretary of the Russian Academy of
Sciences' economics department and M. Masarsky in charge of the
Federal Assessment Fund, delivered initial conference reports.
According to academicians V. Lisichkin and V. Simchera,
the seven-year-long Russian reforms have affected this
country's macro-economic image in an extremely negative way.
The so-called "creative" activities of all Russian
governments over the 1991-1997 period have entailed tremendous
losses of Russia's national wealth to the tune of $1.2
trillion. Incidentally, the Soviet economy had sustained three
times less losses (totalling about $420 billion) throughout the
Second World War.
In real life, all those seven-year efforts aimed at saving
the "perishing" Soviet economy have virtually depleted its
vitality. The "patient's" health continues to deteriorate at a
disastrously quick pace.
The Russian GDP has plunged by 83 percent between 1991 and
1997, totalling $426 billion last year. Industrial output has
dwindled by 81 percent, what with agricultural output
nosediving by 63 percent. At the same time, capital-investment
volumes have plummeted by 92 percent.
44 percent less housing was commissioned last year (on
1990 levels), with the retail trade turnover falling by 36
percent, the services-market turnover declining by 46 percent.
Russia now owes more than $125 billion to other countries
of the world. At the same time, this country is so far unable
to obtain $146 billion from its foreign debtors.
More than 70,000 factories and plants were shut down all
over Russia during the seven years of "reforms". Their list
includes 5,000 huge and big-time entities. Apart from that,
Russia has stopped using 60 percent of all arable farmlands.
Specific materials-consumption levels have soared by 200
percent, with labor-input levels skyrocketing by an impressive
300 percent. On the other hand, production efficiency has
declined five-fold.
Real-life prices have soared by 350 percent. However,
consumer-goods production has plunged by 81 percent. Production
in the "non-foods" category has plummeted by 85 percent.
Incidentally, the people of Russia have managed to consume only
17 percent of domestically produced vodka and wines in 1997 (on
1990 levels). However, the number of alcoholics has not
dwindled, increasing by 200 percent.
The Russian population has shrunk by 3.8 million,
totalling 147.2 million throughout 1997. And the respective
1990 population was 151 million.
About 13 million Russians are now jobless at a time when
this country has just 2.7 million officially registered
unemployed people.
The number of jobless people has swelled 10-fold since the
times of Mikhail Gorbachev. Meanwhile the number of researchers
has declined by two-thirds. This country now has one-third
fewer college and university students and those studying at
specialized secondary educational establishments.
There were 38 doctors, as well as 112 hospital beds, per
every 10,000 of the Russian population last year, with the
respective 1985 ratio being 45 doctors and 135 hospital beds
per every 10,000 people.
Approximately 800,000 highly skilled professionals have
left Russia over this period.
Real-life average monthly wages and pensions have declined
by 78 percent and 67 percent, respectively. Per-capita incomes
have fallen by 58 percent.
The Russian economy has now found itself in the red. The
parameters of this balance sheet are really sensational. But no
one has had any special illusions about the overall state of
things.
Our paper will provide detailed coverage of this
conference in its next issues.
(Interfax-Argumenty i Fakty No. 22. In full.)
THE END
--
Michael Perelman
Economics Department
California State University
Chico, CA 95929
Tel. 530-898-5321
E-Mail [EMAIL PROTECTED]
