By Leo Mccann
The transition of Russia to a 'developed marketplace economic system' has been slower, extra contradictory and not more predictable than anticipated. This e-book examines modern Russian socio-economic improvement, and explores the measure to which Russian reviews will be included into present social technological know-how theories. particularly, it questions how some distance the concept that of 'globalization' is appropriate to the location in Russia.
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Additional info for Russian Transformations: Challenging the Global Narrative (Basees Curzon Series on Russian & East European Studies)
Example text
53 This indicated that the de facto cooperation between the oligarchs and the international financial institutions to secure Yeltsin’s re-election in 1996 came to a definite end, leading Russia into various political uncertainties. Within such a tense political atmosphere, the August 1998 default has substantially changed Russia’s relationship with the IMF. Having frozen its loans to Russia after the default, the IMF has not resumed – or could not resume – lending again. If this has been on the one hand due to the IMF’s persistence with demanding tough conditions to resume lending, it has been 36 Pınar Bedirhanog˘lu on the other hand due to the Russian state’s ever more cautious attitude towards the Fund.
Under conditions of hyperinflation since the start of shock therapy, they had made big profits by borrowing cheap rouble deposits from the Central Bank and investing them in foreign currencies with positive real interest rates (Schröder 1999: 965). 31 Hence, in order to prevent the banking sector’s engagement in inflationary practices the government had to promote better chances of enrichment. The promotion of short-term state securities (GKOs) with positive real 30 Pınar Bedirhanog˘lu interest rates to Russian financial capital (Gustafson 1999: 90) after 1994 has to be evaluated within this context, although the government presented this move as a remedy to the chronic budget deficit problem.
Passive revolution in Gramsci (1971: 115) refers to the established classes’ attempts to absorb an external revolutionary challenge against their rule without changing the extant power structure and by effectively eliminating the masses’ participation in the process of change (Buci-Glucksmann 1979: 216; Forgacs 1988: 247). In other words, it refers to a necessary revolution in the social relations of production, conducted by the dominant classes in a controlled way in order to prevent any alternative historical contingency to emerge by people’s active involvement in the process.
