Russian Economy/Voting-11/15

Party System

on paper —> multi-party

• BUT no opposition to Duma, Putin, or government

• Voting in Duma is 50% PR

  • 5-7-5

  • 5-party has to win 5% before single seat in Duma

  • 7-raised that threshold to 7% before any seats in Duma

    • as a result small parties died out

  • 5-lowered threshold to 5% after parties died out

    • HOWEVER stringent party registration

      • “candidate”

      • gov Chehnya needs 2/3 Chechnya Assembly vote

Economics

command: the govt makes all economic decisions(who, what, produce)

• no private ownership of anything

market: shock therapy-go straight to free-market

• ROUND 1

• eliminate price controls completely

• 2300% inflation, GDP shrunk 15%

• privatization allowed

  • voucher(30$) of privatization

    • invest in business that govt sells off

    • sell vouchers or buy

      • oligarchs knew it before anyone else

      • wealthiest city

        • no property law!! oligarchs started to rule everything

• ROUND 2

• loans for shares

  • sell company for money, but distrust in gov’t repaying BUT oligarchs still richer

  • BLOWS UP IN RUSSIA’S FACE

  • no social safetynet

    govt no longer able to take care of social welfare

  • Yeltsin fails, but Putin now comes into power