Russia: the End of a Time of Troubles?
Four major problems:
Trust
Decision Making
Government and Business
Legal System Trust
Throughout the case, one theme that seems to reappear is the issue of trust. Without trust in the federal government, people take it upon themselves to do what is necessary to survivie. They no longer trust the government to provide a safe environment for them to live. This issue might starts small but gradually affect areas such as the business transaction, the monetary system, the tax system, and ultimately the sovereignty of the government.
Distrust in the government led to an increase in bartering. This leads to two major problems - the inability of firms to pay wages and the inability of the government to collect taxes. Additionally, the weak monetary policy led to many quasi-monies to appear in Russia, making it difficult for the government to enact any monetary policy.
Another significant problem due to the lack of trust in the federal government is its inability to impose its will on local or regional authorities. The federal government was unable to collect taxes from local and regional authorities. Some regions violated federal law, while others claimed that regional laws took priority over federal law. Some went as far as claiming the right to control its own natural resources and conduct foreign trade.
On a more personal level, Putin stated that individuals could not trust in the stability of the businesses, because they could not rely on the law or the honesty of officials. This leads to dissatisfaction and the unwillingness to pay taxes. The inability to collect taxes leads officials to take bribes, and this is a never ending cycle.
Solution - Reorganize federal system to concentrate strong central government
A strong central government is needed to impose change in Russia. It will show people that the government still has the power to act for the greater good of the people leading to a building of public trust. Without it, the many
Trust
Decision Making
Government and Business
Legal System Trust
Throughout the case, one theme that seems to reappear is the issue of trust. Without trust in the federal government, people take it upon themselves to do what is necessary to survivie. They no longer trust the government to provide a safe environment for them to live. This issue might starts small but gradually affect areas such as the business transaction, the monetary system, the tax system, and ultimately the sovereignty of the government.
Distrust in the government led to an increase in bartering. This leads to two major problems - the inability of firms to pay wages and the inability of the government to collect taxes. Additionally, the weak monetary policy led to many quasi-monies to appear in Russia, making it difficult for the government to enact any monetary policy.
Another significant problem due to the lack of trust in the federal government is its inability to impose its will on local or regional authorities. The federal government was unable to collect taxes from local and regional authorities. Some regions violated federal law, while others claimed that regional laws took priority over federal law. Some went as far as claiming the right to control its own natural resources and conduct foreign trade.
On a more personal level, Putin stated that individuals could not trust in the stability of the businesses, because they could not rely on the law or the honesty of officials. This leads to dissatisfaction and the unwillingness to pay taxes. The inability to collect taxes leads officials to take bribes, and this is a never ending cycle.
Solution - Reorganize federal system to concentrate strong central government
A strong central government is needed to impose change in Russia. It will show people that the government still has the power to act for the greater good of the people leading to a building of public trust. Without it, the many