Journalartikel

RUSSIA AND THE COLLAPSE OF THE SOVIET-UNION - CAUSES AND CONSEQUENCES FROM AN ECONOMIC-GEOGRAPHIC POINT-OF-VIEW


AutorenlisteKLUTER, H

Jahr der Veröffentlichung1992

Seiten20-38

ZeitschriftGeographical Journal

Bandnummer80

Heftnummer1

ISSN0016-7479

VerlagFranz Steiner Verlag


Abstract

The Soviet Union had been caught up in a crisis since the early eighties - a crisis that culminated in the break-up of the whole state. At that time economy was completely dominated by the production ministries on Union level. Their gigantic investment policy, the hypertrophic expansion of the heavy industry, the thoughtless subsidies by state capital without any goods or finances to underpin them, the continued reduction of funds from agriculture and the food industry left the system bereft of any foundation of existence. Perestroyka, set in motion in 1985 was not able to cope with the problem of decentralization of the Union's industries, nor with the privatisation of agriculture or how to establish reliable controlling bodies. When allocating their investment funds the Union ministries preferred the north of Russia, rich in raw-materials, and the agglomerations with populations exceeding one million, i. e. regions that are not self-sufficient in food production.

Initially the deficits were balanced out with imports from the non-Russian south and from Western countries. Dating from 1988, however, severe crisis ensued in getting sufficient supplies to the population. As foreign policy changed and as insolvency spread within the Union's budget, the orders placed for armaments and large plants had to be reduced. It was mainly Russia that bore the brunt of this. Problems in transports occasioned by new borders and a lack of economic contracts between the new CIS-states generated a co-ordination deficit accompanied by further losses in production. Impoverishment and obvious unemployment are now the hallmarks of all regions in former USSR. In 1992 the Ural-region and Siberia are very much at risk, areas that were completely dominated by Union ministries until a short time ago. When price controls were lifted without preparation or prior privatisation this served to cement the position of many monopolistic organisations that had developed out of the Union ministries. The appreciation in food value owing to inflation will primarily benefit the southern regions. Galloping inflation is likely to entail a further drain in capital. A reversal in these trends towards greater impoverishment is possible - if perestroyka on local level is stimulated, with careful consideration of micro-economic conditions, of the capability of disposable management, and of regional and sectoral pecularities, - if a functioning regional and communal administration is built up, - if the western policies of interest and credit are altered, - and if a basic change in the investment climate in favour of agriculture and food industry can be brought about.

Political and nationalist consciousness generated by poverty is still most heightened round the periphery of the former Soviet Union. If this desolation is allowed to continue it could also affect the republics of other nationalities in Russia and her agglomerations.




Zitierstile

Harvard-ZitierstilKLUTER, H. (1992) RUSSIA AND THE COLLAPSE OF THE SOVIET-UNION - CAUSES AND CONSEQUENCES FROM AN ECONOMIC-GEOGRAPHIC POINT-OF-VIEW, Geographical Journal, 80(1), pp. 20-38

APA-ZitierstilKLUTER, H. (1992). RUSSIA AND THE COLLAPSE OF THE SOVIET-UNION - CAUSES AND CONSEQUENCES FROM AN ECONOMIC-GEOGRAPHIC POINT-OF-VIEW. Geographical Journal. 80(1), 20-38.


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