in capital flight. Pickering, predicted by the fall of 1999, Russia would be one of America's top trading partners. To encourage the development of the private sector, fundamental changes were made in the tax system, including introduction of a value-added tax (VAT-see Glossary) of 28 percent on most transactions, a progressive income tax, and a tax on business income; revisions in the system. Revenue shortages were blamed on a number of factors, including a heavy tax burden that encourages noncompliance and an inefficient and corrupt tax collection system. Despite periodic delays, the inept administration of the program's more recent phases, and allegations of favoritism and corrupt transactions in the enterprise and financial structures, in 1996 international experts judged Russia's privatization effort a qualified success. Furthermore, the parliament passed restrictions on the use of monetary policy to finance the state debt, and the Ministry of Finance began to issue government bonds at market rates to finance the deficits. In the ensuing eighteen months, Yeltsin made two more changes in the chairmanship position. To support continued production under these circumstances, enterprises relied on loans from other enterprises. By the end of 1992, the Russian budget deficit was 20 percent of GDP, much higher than the 5 percent projected under the economic program and stipulated under the International Monetary Fund (IMF-see Glossary) conditions for international funding. Bush, the leading Republican presidential candidate, attempted to link Vice President Gore to the failure of economic reform in Russia because of his much exaggerated relationship with former prime minister Viktor Chernomyrdin. Commercial banks monetized enterprise debts by drawing down accounts in foreign banks and drawing on privileged access to accounts in the RCB (see Banking and Finance, this.).
Reformation and Ritual
The Asia Pacific Economic Development
Another sign of currency stabilization was the announcement that effective June 1996, the ruble would become fully convertible on a current-account basis. That phase would complete the transfer of state enterprises and would add to government revenues. State enterprise arrears, for example, had built up in 1993 to about 15 trillion rubles (about US13 billion, according to the mid-1993 exchange rate). Formerly the preeminent republic of the Union of Soviet Socialist Republics, Russia has been an independent nation since the dissolution of the Soviet Union in 1991. This meant that Russian citizens and foreigners would be able to convert rubles to other currencies for trade transactions. Russia Table of Contents, two fundamental macbeths Change of Character and interdependent goals-macroeconomic stabilization and economic restructuring-mark the transition from central planning to a market-based economy. Data as of July 1996. Price controls were abolished as the beginning of a transition from a centrally controlled economy to a market economy. Fedorov's anticrisis program and the Government's accord with the RCB had some effect.
Japanese Foreign Policy and Economic Aggressions,