Unit 5 Day 4: Modern Day Russia Chapter 17 Unit 5 Day 4: Modern Day Russia

What happened after the USSR dissolved? Late 1980s, instability increased in the region Caucasus, or Caucasia made of many Russian Republics Began arming themselves to fight to claim territory Many die in conflicts for independence Size of California but has many languages spoken and over 50 different ethnic groups

What are the issues in these regions? Chechnya demands independence and Russia retaliated by invading twice (1995 & 1999) Georgia fights with Russia over Ossetia but loses Mountainous area called Nagorno- Karabakh fought over by Armenia and Azerbaijan since the 1920s USSR kept the peace until it dissolved, then fighting continues (10s of 1,000s died, Armenia won) Russia invades Chechnya on two different occasions (1995 and 1999) however it seems that there is calm (even though there were bombs in Moscow from Chechnya rebels) Georgia was attacked by Russia after trying to take over an area known as Ossetia. Georgia defeated Mountainous area fought over since the 1920s but the USSR kept the peace. Once the USSR dissolved, the fighting broke out again. tens of thousands of people died and over a million refugees fleeing the area. Armenia won out.

How does a nation change its economic system? Russian government stops controlling prices and prices of goods increase by 250% Privatization: selling government owned businesses to private companies and citizens Many had to take out loans to buy them Promised to pay back loans with profits, but many could not pay up Led to economic crash in 1998 Many felt the government wanted them to fall asleep in a Communist nation nation and wake up in a Capitalist nation Many Russians did not have money to buy companies from the government, so they allowed citizens to take out loans in order to buy the company. Lots of people could not pay their loans back and that led to the economic crash of 1998 in Russia. Many Russians still living in poverty wonder if things were not better under Soviet rule.

What were obstacles they faced? Distance decay: Long distances between places makes communication and transportation difficult 11 time zones & 89 regional governments Weak central government did not enforce reform programs Putin creates 7 large federal districts 11 time zones with 89 regional governments Governor general of each region. Districts would force reforms that Moscow wanted and control local governments.

How is the Russian mafia Involved? Grew rapidly in the 1990s and created their own economy Controls most state owned enterprises and many private businesses Unfortunately, people make more money illegally than legally Government cannot collect taxes on their businesses Alexander Matusov brought back from Thailand to face trial for 1995 killings Russian tombstone on the bottom Above: Alexander Matusov