Soviet Godfather

In view of the serious domestic and foreign troubles, Gorbachev reluctantly announced that the 28th National Congress of the Communist Party of the Soviet Union and the first direct elections of the Soviet Union would be held ahead of schedule. At the same time, the election of the representatives of the 28th National Congress of the People's Congress and the election of the representatives of the Supreme Soviet would Work is also on the agenda. Because this election allowed non-Soviet Communist Party members to serve as candidates, it actually gave up the system that the Soviet Union had always adhered to. This is a crucial meeting on the future fate of the Soviet Union. Therefore, this election campaign is really eye-catching, because a series of domestic reform activities in the past few years have prevented the CPSU from being a united whole, including the conservatives represented by Ligachev and Yakovlev. The New Thinking School has many followers within the CPSU. However, with the series of fruitful reforms of Sergei Shah in the country, many young comrades in the party began to focus on him.

For these expectations, Sergey Shah was rather disturbed. Sergey Shah himself had unspeakable difficulties, and he did not want to take a higher level in his official career. What Seryosha really needs is an agent who can be controlled. In Sergei Sha's view, Yeltsin, who was abandoned by both conservatives and new-thinkers, was his best candidate. Sergei Sha is now shouldering the heavy responsibility of reforming the Soviet Union. He knows the depth of the Soviet Union's economic ills, and it is not an overnight effort to completely reverse it. From the current point of view, the economic lifeline of the Soviet Union is still unable to get rid of the exploitation of oil, natural gas, and mineral resources. But at present, the world economy is still operating at a low level. The explosion of the information industry may be within a year or two, but the information industry does not directly help the bulk trade of resource products. Only after the world economy has regained its vitality and consumption has begun to become a new driving force for economic growth, countries that rely on resources for their livelihoods will gain economic growth as oil prices rise.

At this time, the whole world is facing a lack of investment. In Eastern Europe, this is especially true of countries that have just undergone a transformation in their social systems. They are burdened with a large amount of foreign debt, their own economy is sluggish, domestic commodity supply is insufficient, and severe inflation has caused the governments and people of these countries to suffer. But this is a rare opportunity for Sergey Sha, who has long coveted which industrial enterprises in Eastern Europe. Now, the new types of governments in Eastern European countries have no choice at all when faced with large fiscal deficits and foreign debts.

In order to allow Eastern European countries to embark on the radical privatization path Sergei wanted. Seriosha invited one of today's hottest economists from South America to conduct academic visits to Eastern European countries as a platform for the Bank of Colombia. The expert’s name is Jeffrey Sachs. He is now employed by the Bank of Colombia as an economic consultant in Eastern Europe. The reason why Seriosha hired such a scholar is entirely because of his current name in the economic world. ——The father of "shock therapy".

Jeffrey Sachs’s current reputation in the economics circle is truly surging, catching up with the Chicago school that successfully carried out economic reforms in Chile. Because the "shock therapy" created by Jeffrey Sachs is not an academic concept in an ivory tower, a castle in the sky, this theory has just achieved great success in Bolivia, a barren country in Latin America.

Although Jeffrey Sachs was well-known in the economic world before, he still does not have the current status of the arena. He is only a respected professor in the Economics Department of Harvard University. It was not until 1986 that Jeffrey Sachs was hired by the President of Bolivia as an economic adviser to the Bolivian government that his shock therapy had a real use.

Bolivia is a small country in South America with almost no industry. The economy is mainly based on agriculture, which is said to be agriculture. In fact, the most profitable agricultural economy is to provide drug cartels in Escobar with coca. It was such a poor American country that fell into serious economic trouble in the mid-1980s due to a series of investment and decision-making errors. In 1984, Bolivia’s foreign debt was 5 billion U.S. dollars, and the interest payable that year was 1 billion U.S. dollars, which had exceeded all Bolivia’s export income at that time. By 1985, the Bolivian government’s fiscal deficit had reached 4,869 trillion pesos, which was equivalent to one-third of Bolivia’s GDP that year. At that time, Bolivia’s inflation rate had reached 24,000%. The economy has completely collapsed.

As the so-called turbulent times use heavy codes, heavy medicine will be used to deal with the disease. Faced with this sinister economic environment, Jeffrey Sachs' radical shock therapy naturally came in handy. Abandoning those esoteric economic principles, Jeffrey Sachs' economic reform is nothing more than three secrets, namely, reducing all government expenditures, deregulating prices, and complete privatization. When these measures were implemented, they immediately received immediate results in Bolivia.

Shock therapy was implemented in Bolivia in the first week, under the multiple combinations of the government's large-scale cancellation of price subsidies, cuts in expenditure, and crazy tax increases. Inflation in Bolivia has finally been brought under control. The money supply in the entire market has not increased because the government has cancelled investment, and coupled with the almost crazy tax increase policy, more and more currencies have returned to the government. The currency in the market has decreased, so prices have not risen sharply.

After controlling inflation, Jeffrey Sachs immediately began to implement the second reform step ~www.readwn.com~, which is to loosen the control of prices, and let prices and currencies begin to be freely linked, and at the same time it started. Large-scale privatization activities. If only the price control is released, according to the money supply in the market at that time, prices will naturally rise. However, the move of privatization has put prices on a downward channel. Because of privatization. State-owned assets began to circulate in the market like commodities. For example, government-controlled factories were originally sold without entering the market. But when the complete privatization started, the factory was put on the market like a commodity. Suddenly, the number of commodities on the market increased, and prices naturally began to fall.

Jeffrey Sachs’s measures were extremely successful in Bolivia, and Bolivia’s situation at the time was exactly the same as the Eastern European countries today. The same debts, the same hyperinflation, and the same country had a lot of control. assets. This gave Jeffrey Sachs full confidence in applying his shock therapy to Eastern Europe.

So under the arrangement of the Columbia Bank, Jeffrey Sachs began his own trip to Eastern Europe. Sergey knows Jeffrey Sachs’s theory well. He is happy that Jeffrey Sachs will become the economic adviser and reform promoter of Eastern European governments, because whether it is deflation, price marketization, and complete private ownership The transformation is what Xie Liaosha has been looking forward to for a long time. Sergei is convinced that if Eastern European countries reform according to Jeffrey Sachs’ shock therapy, the Gorky consortium will surely gain the greatest benefit ()