DATE=4/22/99
TYPE=CORRESPONDENT REPORT
NUMBER=2-248489
TITLE=RUSSIA'S FAILED ECONOMY (L-ONLY)
BYLINE=BARRY WOOD
DATELINE=WASHINGTON
CONTENT=
VOICED AT:
INTRO: WASHINGTON'S SCHOOL OF ADVANCED INTERNATIONAL STUDIES
(SAIS) THURSDAY HOSTED A PANEL DISCUSSION ON RUSSIA'S FAILED
EXPERIMENT WITH FREE MARKET ECONOMIC REFORM. V-O-A'S BARRY WOOD
WAS THERE AND FILED THIS REPORT.
TEXT: DIMITRI SIMES, THE HEAD OF THE (RICHARD) NIXON RESEARCH
CENTER, SAYS THE ROOT CAUSE OF RUSSIA'S FAILURE TO BUILD A MARKET
ECONOMY IS THAT NEO-BOLSHEVIKS WERE IN CHARGE DURING MOST OF THE
1990S. THE SHOCK THERAPY APPROACH TO BUILDING A MARKET BEGUN IN
1992 FAILED, SAYS MR. SIMES, FOR SEVERAL REASONS INCLUDING THE
LACK OF PRIVATE PROPERTY, AN INADEQUATE LEGAL SYSTEM AND THE
ABSENCE OF KNOWLEDGE OF HOW A MARKET ECONOMY WORKS. MR. SIMES
SAYS LESZEK BALCEROWICZ, WHO LED POLAND'S SUCCESSFUL SHOCK
THERAPY TRANSITION TO THE MARKET THAT BEGAN IN 1990, TOLD A
REVEALING STORY DURING A RECENT VISIT TO MOSCOW.
//SIMES ACT//
HE SAID WHEN OUR REFORMS BECAME UNPOPULAR IN POLAND WE
WENT INTO OPPOSITION, GAVE OUR OPPONENTS A CHANCE TO TRY
AND THEN WE CAME BACK WITH MORE MATURITY AND MORE
LEGITIMACY. WHEN RADICAL REFORMERS BECAME UNPOPULAR IN
RUSSIA, YELTSIN USED TANKS AGAINST THE PARLIAMENT. AND
YOU KNOW WHAT, ALOT OF PEOPLE IN WASHINGTON, CERTAINLY
MOST OFFICIALS IN THE CLINTON ADMINISTRATION, APPLAUDED
HIM AND CALLED IT A TRIUMPH OF RUSSIAN DEMOCRACY.
//END ACT//
ANOTHER PERSPECTIVE CAME FROM DAVID LIPTON, THE U-S
UNDER-SECRETARY OF THE TREASURY UNTIL LATE LAST YEAR AND A PERSON
ASSIGNED CONSIDERABLE RESPONSIBILITY FOR DEALING WITH AID TO
RUSSIA. MR. LIPTON SAYS THE DEBT DEFAULT AND DEVALUATION OF LAST
AUGUST WERE A COLLOSSAL FAILURE OF RUSSIAN REFORM. BUT HE SAYS
THE BIGGEST FAILURE OVER THE PAST SEVEN YEARS IS THE FAILURE TO
BUILD THE INSTITUTIONS OF A MARKET ECONOMY.
//LIPTON ACT//
I WAS STRUCK IN TRAVELLING TO RUSSIA, AND IN THE WORK WE
WERE DOING AND TRYING TO SUPPORT, THE BUILDING OF A
CAPITAL MARKET INFRASTRUCTURE. THAT WE HAD TO ASK THE
MOST FUNDAMENTAL QUESTIONS ABOUT HOW CAPITALISM WAS TO
BE PUT TOGETHER IN RUSSIA. WHEN BUYERS SELL STOCK HERE
(USA), GO ON THE COMPUTER TO DO E-TRADE, YOU DON'T ASK
YOURSELF, WHO IS IT THAT IS SELLING ME THAT SHARE? HOW
DO I KNOW THAT IT IS ACTUALLY MINE? WHO IS GOING TO
REGISTER IT TO SEE THAT IF I WANT TO SELL IT THAT I
STILL OWN IT? THOSE KINDS OF QUESTIONS HAD TO BE ASKED
IN RUSSIA.
//END ACT//
THE PANELISTS WERE NOT OPTIMISTIC ABOUT RUSSIA'S ECONOMY OVER THE
SHORT OR MEDIUM TERM. MR. LIPTON BELIEVES THE REAL CHALLENGE IN
RUSSIA IS POLITICAL, THE NEED TO STRENGTHEN THE CENTRAL
GOVERNMENT AND GIVE IT MORE LEGITIMACY. (SIGNED)
NEB/BDW/PT
22-Apr-99 7:11 PM EDT (2311 UTC)
NNNN
Source: Voice of America
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