Thirty years ago this spring, Russia was at the beginning of what would be a dramatic, although uneven, economic recovery following the collapse of the Soviet Union in December 1991. At the moment of the Soviet collapse, Russia inherited a budget deficit that was conservatively estimated at 20 percent of GNP, it faced the threat of hyperinflation, economic growth was negative, there were shortages throughout the economy, foreign reserves were virtually nonexistent, and it was racking up a mountain of international loan commitments. The state faced the realistic threat of famine and bankruptcy. In the decades that followed, however, Russia traveled a long way down the road of economic and social modernization. This was partially due to high global prices for its exports. The country also benefited from good macroeconomic policy and the stewardship of Elvira Nabiullina, the smart and surprisingly independent chairwoman of the Central Bank of Russia (CBR) since 2013. Despite Vladimir Putin’s propensity to use public assets for his own personal benefit and that of his former KGB cronies, by 23 February 2022, the day before Putin’s invasion of Ukraine, the country had paid off its debts, built up sizeable foreign reserves, and for the most part maintained a budget surplus.
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How Putin’s War in Ukraine Has Ruined Russia | Journal of Democracy
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