This week's In the News examines the tumultuous state of affairs in Russia. The ten resources discussed offer background, news, analysis, and commentary. In recent weeks, political turmoil and economic chaos have severely threatened Russia's stability as an emerging free-market democracy, prompting regional governor and former general Alexander Lebed to say that "the situation in Russia is catastrophic--worse than in 1917." Russia's latest political upheaval began on August 23 when the unpredictable President Boris Yeltsin discharged his prime minister, Sergei Kiriyenko, and reinstalled the previous prime minister, Viktor Chernomyrdin (see
the April 7, 1998 Scout Report for Social Sciences). Chernomyrdin plans to create an "economic dictatorship" in Russia and to print billions of rubles to avoid total economic collapse. Yesterday, in an approval ballot to reinstate Chernomyrdin as prime minister, the Duma rejected his appointment for the second time in two weeks. Analysts predict that next week a subsequent ballot for approval will fail, the Duma will dissolve, and Yeltsin will rule by decree, without a functioning government, until new parliamentary elections are held. Russian political dissension has been induced by the country's severe financial crisis. On September 6, the Russia economy suffered a blow when the European Union decided not to offer money to Russia and spurned a moratorium on debts Russia owes to EU members. Today in another setback, chairman of the central bank, Sergei Dubinin, tendered his resignation. These events, compounded by ruble devaluation, limited tax revenue, and skittish foreign investments, have left the economy in shambles, despite the recent receipt of an enormous loan from the International Monetary Fund (discussed in
the July 16, 1998 Scout Report for Business & Economics).
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