Russia' Economic Transition

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another, would be used
for the extraction of raw materials. These materials would then be shipped back
to the capital in order to be manufactured into goods. From there, the
manufactured products would be shipped back to the surrounding regions
(periphery region) for resale. The citizens of Russia were surviving on this
system, but barely. The Core-Periphery policy was not efficient, nor effective,
for usually a product needed on one side of the federation, was produced at the
other end. Factors such as transportation costs and adequate use of human
resources was very inefficient and cost-consuming. Strong influences from the
world urged Russia to make the transition into the market-oriented economy. This
seemed tempting, for the market-oriented economy preached individual wealth and
prosperity. Seeing no better solution to their current economic woes, Russian
policy-makers took the plunge.

By 1995, 4 years since the beginning of the transition into a market-
oriented economy, no ...

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many of the
republics this did not actually take place. In 1995, all but 2 of the 15
countries saw their net exports per capita fall drastically. Lithuania, once
with a net export per capita rating of 49.2, was experiencing one of -54.1 in
1995 (Table 1). On average the citizens now had less than before.

Many countries began to realize that they were in many ways still
dependent on so-called "mother Russia". The past Core-Periphery policy had made
them heavily rely on internal domestic trade. Being nothing more than satellite
states in the centrally planned economy, these countries were traditionally used
for the extraction of materials or the production of a singular industry. ...

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