unemployment is inevitable as budget subsidies to state enterprises are cut and living standards deteriorate dramatically, at least in the short run.[4]
As the situation in Russia has worsened economically, one of the prime proponents of "shock therapy" in the United States, Jeffrey Sachs, Professor of International Trade at Harvard, has become alarmed. He believes that Russia's economic reforms are now falling prey to confusion, communist counterattack, and neglect from the West.[5] Sachs argues that the inial reform steps taken by acting prime minister, Yegor Gaidar, did achieve some success in the areas of launching an initial privatization program, freeing prices, and undertaking legal reforms. However, he fears these fundamental achievements are being swept away by hyperinflation.
He maintains that the urgent need is to stop the outflow of ruble credits from the Russian Central Bank to state enterprises and the budget. He blames the bureaucrats and politicians for believing that a return to p
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