Question

Are the Russian people better off now under their new and current economic and governmental structure, or were their lives better while under the communist system?

Answer 1

After the collapse of the Soviet Union in 1991 and collapse of Russia's controlled economy, a new Russian Federation was created under Boris Yeltsinin 1991.after 1991 the economy has become much stable now . Before 1991 , all economic decisions were taken by communist party . All economic activities are done according to the directions of communist party . It was a centrally planned economy .

But after 1991 the economy was shifted to market based economy which gave a boost in the economy . Their was implementation of fiscal and monitary policy that helped in growth of economy with stable prices and exchange rate .their was introductions of financial institutions - Banks and Pvt institution that promoted and helped in economic efficiency .Domestic market was opened for foreign trade and investment , this helped Russia to become globally competitive and increased productions and development .

At the time of end of communist government their was high rate of privatisation and inflation. After 1991 , with repeated effort in decreasing rate of inflation's Russian government got achievement in 1998 onwards when inflation started to decline and rate of privatisation also declined . The state ownership started increasing and inflation started to decrease .

After 1999 economy was hit by crisis but slowly slowly it gained and improved itself . With average real GDP growth of 6.9% per year, an increase of 10.5% in average real wages, and growth of 7.9% in real disposable income all occurring within the period from 1999 to 2008.

Though Russia faced a lot of ups and downs but people are still better off now as compared to before 1991 as now their is sufficient increase in wages , decrease in inflation's , decrease in privatisation and open of international trade and development of trade commerce and infrastructure.