By John M. Letiche
John M. Letiche is Professor Emeritus of Economics on the college of California, Berkeley
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10 In mid-May 2006, President Putin accused Russian officials of smuggling cars, wine and even yachts to Russia and of skimming billions of dollars in duties. At a cabinet meeting about a month earlier, which was broadcast on state television, he asked the Minister of Trade and Economic Development when he was going to stop the practice of customs units and businessmen merging in economic ecstasy at most of the border crossings. On May 11, he took action against bureaucratic corruption. First, he transferred the Customs Service – a lucrative prize in Russian politics – from the control of the Minister of Trade and Economic Development to direct oversight by the prime minister.
2 percent – the lowest rate in almost three years. 31 Although the economic slowdown was also associated with factors such as rising wage rates relative to labor productivity, declining excess capacity in most sectors and the appreciating ruble, the Yukos crisis exacerbated the business-government climate and badly hurt the performance of the Russian economy. The Yukos crisis 41 Attempting to reduce uncertainty, on November 16, 2004, President Putin affirmed: The state must guarantee the stability of the results of privatization and provide all possible protection for private property as one of the foundations of market economics.
3 Putin concluded the conference by answering a question about the right to choose. ”4 Manifestly, these views are applicable not only to Russia but to the former Soviet republics as well. Notes 1 Vladimir V. Putin, First Person (New York: Public Affairs 2001), p. 161; See also pp. 174–196. For further bibliographical material, see the instructive interviews in this publication and the excellent book by Oleg Blotskii, Vladimir Putin, Istorria Zhizni (The History of a Life. Prima Facie), vol 1, 1952–1974 (Moscow: Mezhdunarodnye Otnosheniia, 2001); Peter Truscott, Putin’s Progress.