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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?


To: gao seng who wrote (135661)4/5/2001 9:06:45 AM
From: Neocon  Read Replies (1) | Respond to of 769668
 
Russia needed the resolve that Poland showed, in weaning itself from socialism and setting firmly on a market path. After a brief troubled period, it began robust growth. Instead, in Russia there were half measures, like opening land to long term leasing rather than actually selling it, and allowing the nomenklatura to loot a lot of the "privatized" enterprises. The continued politicization of the economy, and the inefficiencies that were perpetuated, made the rise of the Mafiya almost inevitable, by exploiting corruption and the opportunity for black market profits. This further exacerbated the situation, as extortion was used to drain resources from the struggling aboveboard economy, and capital was siphoned out of the country to be converted to hard currency in Swiss banks.

What needed to happen was a push to full convertiblity of the ruble early on; the marketing of shares in privatized enterprises, instead of the rationing of shares; the full revamping of commercial law, including ensuring secure title to real estate and non- discrimination against foreign enterprises; and other things that would have encouraged investment and made business more predictable. Instead, they made it hard for Russians to conduct business, and even harder for foreigners.

Clinton could have influenced these problems by negotiating the terms of aid, and helping to buttress the safety net for the greatest hardship cases, so that there was less misery to point to during the transition. A tailored Marshall Plan might have been just the thing.

China is better off insofar as it has been developing economically for some time now. What it needs is a modernization of administration, the creation of an independent judiciary with respect for due process, and a grasp of the mechanisms of democracy, including the importance of civil liberties to its maintenance. There is a great deal we could offer by way of expertise and targeted aid........