Russian Reform And Economics: The Last Quarter Of The 20th Century

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and freedom, while the
government was trying to obtain democracy. The previous management styles
needed to be changed along with the way that most businesses in Russia operated.
The Russian Federation consists of 17,075,400 square km, which is roughly
76.2 percent of the former USSR, and covers about 12 percent of the earth's land
surface. The Russian Federation's population in 1991 was 147.3 million (Smith,
A., 7).
During the 1980's the Russian government started a reformation process
called "perestroika," meaning restructuring (Aganbegyan, 1). Perestroika
signifies qualitative changes and transformation in the government and in the
economy. The four stages of perestroika are the "Preliminary stage (March 1985-
February 1986)," the "Stabilizing stage (March 1986 - January 1987)," the
"Expansive stage (January - November 1987)," and the "Regrouping stage (November
1987 onwards)" (Hill & Dellenbrant, 140). The government also identified two
other processes. ...

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causing wages to be low and work conditions to
be very poor. Russian workers would steal from the government in order to
supplement their low wages. The Russian theory was that people were motivated by
their collective interests. This proved to be very wrong. The actual growth for
national income in 1987 was 1.6 percent less than what the government had
predicted (Hill & Dellenbrant, 106).
With all of the changes going on in each of the stages of perestroika there
was a lot of political, bureaucratic, managerial, and intellectual opposition to
what the leaders were establishing. This goes to show that people will always
resist change.
Perestroika identified many problems ...

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