The possible default of Russia on her debt has precipitated a crisis around the world, and coming at the same time as the Asian crisis, this may be a devastating second-tier of financial woe with effects far from Moscow. The Russian crisis has already affected investment in certain hedge funds and has frightened a number of analysts who realize what more could happen if the crisis is not resolved. Many Americans see Russia as far away and not related to American interests since the downfall of the Soviet threat, but this is not the case. The Russian crisis has already had an effect on the American economy and may have an even greater one. This may or may not be an argument for bailing Russia out, but it is certainly cause for some concern.
DEVELOPMENTS IN RUSSIA IN THE 1990S
Gorbachev brought about many changes in Soviet politics and society. In 1989 changes occurred throughout eastern Europe through a series of peaceful revolutions. The world then asked whether the Soviets would follow their satellites. New political alliances produced new tensions until Russia was declared independent and withdrew from the Soviet Union (McKay, Hill, and Buckler 1115-1116).
Observers note that Russia has been moving toward a market economy, though they wonder if the people will continue on this road. Official Russian statistics indicate that there has been a decline in production in state-run industries, but there has also been a rise in private-sector activities. The standard of living has improved in Moscow and St. Petersburg for most people, but life has worsened for those who are old and on a pension ("Russia: What's Next" 22).
Since the time of the failed coup attempt in 1991, the Russian economy has been in a transition to a Western-style capitalist country. This only partially identifies the goal, since there are several different types of Western capitalist country. Each of the Western models is sufficiently similar,...