With the news this month of the death of Boris Yeltsin, it has been an opportunity to look back at the economic legacy of the first democratically-elected President of Russia. Boris Yeltsin took over at a time when all goods were scarce and the industrial infrastructure was crumbling. He adopted policies of extensive privatisation and abandoned price controls. To what extent has this created the Russia of today and what is the legacy he has left behind?
Yeltsin’s moment The Economist (subscription) (26/4/07)
Yeltsin’s economic legacy BBC News Online (24/4/07)
Questions
| 1. |
Explain the reasoning behind the policies that were adopted by Boris Yeltsin in his early years in office. |
| 2. |
Discuss the extent to which those policies enabled the development of the Russian economy. |
| 3. |
Assess the current state of the Russian economy. |
Recent economic history has led many commentators to believe that a free-market capitalist economy is the only efficient method of allocating resources. The transition of former Eastern Bloc economies has furthered this perception. In the article from the Guardian linked below, Andrew Murray considers this argument and argues that capitalism may not be the be all and end all of economic organisation.
No, capitalism is not the only way to order human affairs Guardian (8/3/07)
Questions
| 1. |
Discuss the arguments for and against using a free-market economy as the principal method of resource allocation. |
| 2. |
Assess the principal reasons for the transition of planned economies to market economies over the past two decades. |
| 3. |
Examine the validity of the arguments raised by Andrew Murray in his article. |
In a new book, Will Hutton, the editor of the Observer and well-known economic commentator, has argued that we have overstated the economic threat from China. He argues that their economic model is flawed and that extensive corruption in the system is distorting economic growth in the country. The article below from the Guardian is an edited extract from his new book that considers many of these issues.
Power, corruption and lies Guardian (8/1/07)
Questions
| 1. |
“….. the transition from communism remains fundamentally problematic”. Discuss the extent to which these problems are likely to affect the pace of development in China. |
| 2. |
Explain what Will Hutton means by ‘Leninist corporatism’. Why does he believe this to be a problem for China? |
| 3. |
Assess the likely impact of corruption in China on long-term development and the rate of economic growth. |