The Pros And Cons Of Voucher Privatization

government spending to cut inflation; redirection of government investment from heavy industry toward domestic market; decreasing government control on domestic market; ; a tax structure to direct and allocate financial resources to the different sectors more efficiently. Then, Yeltsin initiated 2 policies called Voucher Privatization and Loans for Shares that let Russia fall into the arms of strong oligarchs. The Yeltsin administration prefered to implement Voucher Privatization, which refers to the sell of state assets to the Russian public, instead of initiating open sales of assets believing that such a movement would culminate in further concentration of power in the hands of Russian mafia and nomenklatura, although it resulted in contrary

He lowered a flat income tax of 13%, among the lowest in the world. With regard to financial infrastructure of the Russia, he created stabilization fund, total budget expenditures were cut from 35 per cent of GDP, he diminished profit tax. He introduction of defined contribution system with regard to pensions. Also, foreign access to banking sector was more liberalized. People also got able to sell and buy urban lands. Net capital flows rose from-$24.8 billion to $81.2 billion to compare the datas in 2000 and 2007. Private consumtion augmented to 60 per cent of GDP. The real income within Russia rose 250% and real wage almost tripled. Unemployment was almost handled as well. Value of the state market increased to 91%, corporate tax was decreased to 24%, being amongst the lowest in the world in spite of the obstacles to microeconomic management of Russia such as pressure of elites, resource curse, as well as political problems like Chechnya. In 2001, GDP increased by 5.5%, industrial and agricultural production by approximately 5%. Exports reached 108 billion dollars. These were, thanks to Putin, plenties of achievements Boris Yeltsin was unable to do during 1990s. National budget went for a surplus through Putin, so he was able to pay salaries as well as pensions. Moreover, he provide more money for the people as well. These factors were one of the main contributors to the approval rating of nearly 70% maintained by Putin for years despite recession in the Russian economy in the post 2008 period. We can also that although it was not quite plausible, Putin achieved to intergrate the Russian economy to the global economy. Here’s a good statistical data for that. “From 1994 to 2000, Russian exports as a percentage of GDP increased from 27.7% to 44.1% but declined to 31.3% in 2008. Russian imports as a percentage of GDP have declined