1. Shock Therapy in Russia and Bolivia
*(denotes comment from Matt) You started the presentation with a low level of enthusiasm. Make sure you practice, the first minute especially, at least a few times so you can get started comfortably. Your presentation is good and I expect it will get significantly better before the final, so you can be confident about it when you talk.

2. Comparing Russia and Bolivia
Population
143,420,309
8,989,046
Type of Shock
Regime Change (Privatization)
Monetary Therapy
(Decrease Hyperinflation)
Date of Shock
1990
1985
GDP per Capita 2004
(Constant 2000 US$)
$2,302
$1,036
Put Russia and Bolivia side by side in a table and show relevant data for comparison, such as type of shock, what was shocked, dates, GDP growth, inflation, in possible to get it in one place.

3. Russia and Privatization Methods
First Plans for Privatization were passed in 1991
In October of 1992, each Russian citizen received 10,000 rubles worth of vouchers
Show the main “shock” variables such as monetary growth, inflation, privatization, GDP growth, etc. for the two countries side by side using the shock start date = 0 for both countries. In other words if shock in Bolivia was 1985 and in Russia it was 1990, but those years side by side and each subsequent year you want to use, Start +1, Start +2, etc., on the same rows.

4. Privatization Continued
Vouchers were immediately exchangeable for shares in enterprises selected for privatization
Everything not so smooth…
Labor Productivity in Selected Transition Countries,
"Staged" Privatization
Poland
36%
Hungary
29%
Mass Privatization
Czech Republic 6%
Russia
33%
Source: Economic Commission for Europe, Economic Survey of Europe, 1999
Need to be more precise. Each citizen got the same number of vouchers, or what? What was the date. In 1994, what percentage of employment and GDP was “privatized?” Need the relevant dates in a time line graph. Too much stuff mixed together here.
*I agree; in general the explanation needs to be clearer.

5. Problems Managers Feared that they would lose their power
Stage 2 (1994) “Loan for Shares”
Auctions were changed right up to the time of their meeting and only insiders new
Were given large loans to buy the vouchers off the less educated lower classes
Very political, had to keep the Upper class happy so the politicians in office were able to stay and continue Privatization
You need to spell out what each of these means and describe how they work.
*I agree with the above. Which incentives for managers?

6. Problems Continued Public Very skeptic
Had been told for 70 years that Privatization was bad and now the government is turning around and saying the exact opposite
Were tricked into selling the vouchers for dirt cheap prices which inflation then caused them to be almost worthless
Ended up bartering for vodka and other goods instead
It was very valuable to be educated during this time

7. Reasons for Quick Transition
Leaders felt political pressure that they must make changes and make them quickly so that the citizens could see the advantages of Privatization
Much different than neighboring Poland
Privatization laws passed in 1990
First Auction wasn’t until 1995
Russia passed late 1991 and first auction in December 1992
OK. Let’s compare Poland and Russia a little. What’s meant here? What “didn’t work” in Poland. What’s the “diversification that Yeltsin was talking about?

8. Bolivia
Better show the inflation figures and monetary growth figures and also government deficit.

9. Bolivia In 1985 the Inflation rate was an astounding 13,000%
Implemented a new monetary policy
Boliviano introduced
Government began to cut spending
Need a timeline graph.

10. Problems
Has caused oilmen and industrial soy farmers to gain massive profits
Main Agricultural Products :soybeans, coffee, coca, cotton, corn, sugarcane, rice, potatoes
The income levels for most have become stagnant
Half the population now lives on $2 a day
They grow soybeans in Bolivia? What oilmen? Do they have a lot of oil wells. What years are you talking about here. How has poverty level evolved during the therapy period from before to now?

11. GDP Growth

12. Bolivia Gonzalo Sánchez de Lozada
The brains behind the economic reforms
People didn’t see the quick results and he was ousted as president
Feels that if he would’ve had more time things might have worked out better
Bolivia today now has high unemployment and is one of the poorest countries in South America

13. Non-Policy Problems in Bolivia
Wars in the late 19th and early 20th centuries cost Bolivia it’s seacoast
Since independence, Bolivia has lost over half of its territory to neighboring countries due to wars.

14. Question to Think About
As you can see with Inflation and GDP Growth Bolivia seems to be fixing some problems, but they are still the poorest country in South America. Could it be that no matter what policies the Bolivians put in place they will never be able to be a big time player in the world economy because of out lying problems such as where they are located and natural resources?