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POST USSR Russia

. Factors such as transportation costs and adequate use of human resources was very inefficient and cost-consuming. Strong influences from the world urged Russia to make the transition into the market-oriented economy. This seemed tempting, for the market-oriented economy preached individual wealth and prosperity. Seeing no better solution to their current economic woes, Russian policy-makers took the plunge. By 1995, 4 years since the beginning of the transition into a market-oriented economy, no satisfactory economic improvment had taken form. Productivity in many states such as Turkmenistan and Belarus continued to fall (Table 2), and inflation was still at high levels. Many new Russian capitalists in the regions chose to exploit what had already been exploited in the past; raw materials. Looking to make a fast income, these new Russian capitalists sold whatever they could get their hands on, for practically no cost at all (Co-Existence, 146). Expropriation of state property, shady deals, and corruption were rampant. Productivity in industries such as agriculture declined as farmers did not want to take care of their land (Co-Existence, 146). Nobody had money to buy their goods, so they questioned as to whether or not they should take the time to produce them. The economy was contracting and in turn, people were actually getting poorer. The newly separated states were yearning for economic growth and prosperity. This would hopefully bring stability and a much needed improvement in the standard of living as well as individual wealth. This however, has not been the case. Many of the breakaway republics have actually experienced considerabl...

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