The consequences of "shock therapy" are as follows:
1. Privatization has messed up the economy and severely hit production. The production efficiency of enterprises has not been improved, and the goal of private ownership by the whole people has not been achieved. On the contrary, state-owned assets fall into the hands of very few people and become a financial industry group closely related to the government. These groups control a large number of enterprises and form a new monopoly. In the process of privatization, a large number of enterprises have also fallen into the hands of the mafia, which simply does not care about the production of enterprises, but only uses enterprises to launder money. Finally, the funds obtained by the state from privatization are mainly used to make up the fiscal deficit, not to develop production.
2. Price liberalization leads to out-of-control prices, rapid inflation and a sharp decline in people's living standards. According to the statistics of the Ministry of Labor of the Russian Federation, from1June 1992 to1September 1993, prices rose by 162 times, while residents' wages only increased by 56 times, and residents' living standards dropped by two-thirds. 1September 1996, the average monthly salary of Russians was 800,000 rubles (about 150 US dollars), only 43% of that of 199 1 February. 20% of the population in China earn less than $75 a month, which is below the poverty line. At the same time, there are about 500,000 "new Russians" in Russia whose monthly income exceeds $65,438+0.5-20,000, and the social polarization is serious.
3. After the liberalization of foreign trade, Russian restricted imports only accounted for 16% of domestic goods, and foreign goods quickly occupied Russian domestic consumption market, with foreign goods in Moscow and St. Petersburg accounting for 70%-80%, which seriously hindered the development of Russian national industry. Moreover, due to the lack of competitiveness of national industrial products, Russia can only export resource products such as oil and natural gas in exchange for foreign exchange, and the export structure is unreasonable. The liberalization of foreign trade has affected the development of Russian economy.
4. It provides a hotbed for the breeding and development of "shadow economy". "Shadow economy" refers to the informal economy operating outside the law, and its typical feature can be said to be avoiding the formal registration of commercial contracts or deliberately distorting the contents of contracts. The payment of funds for "shadow economy" activities is mainly cash, including foreign exchange. Its activities range from administrative departments to markets, involving all aspects of social economy and becoming an important part of Russian economy. Russia's "shadow economy" can be divided into two categories. The first category is mainly engaged in open and effective economic activities, producing effective commodities and providing consumers with necessary services. However, due to the imperfect tax collection and management system, they evade state taxes and engage in some illegal economic activities, such as cash transactions. In addition, workers, experts and engineers also take advantage of their convenient working conditions to engage in some "shadow" activities. The second category is the completely undisclosed occupational "shadow economy", which includes vicious criminal activities, such as drug trafficking, arms trading, extortion, robbery, theft, prostitution, hiring and killing, and corruption of government officials.
Russia's large-scale privatization destroyed the management system. When the administrative command system of economic management was destroyed, the market regulation mechanism was not established, which formed a huge vacuum of economic management and provided a hotbed for the breeding and development of "shadow economy". People rely on speculation, deception and extortion to get rich, and huge state-owned assets openly flow into private pockets. In the process of privatization, only 5% of the proceeds from privatization were turned over to the state finance, while 95% of the proceeds from privatization plans disappeared. Coupled with collusion between operators and officials, tax evasion; The state's monopoly on some economic sectors and some informal groups controlling some markets have set up various obstacles to economic activities trying to enter the market; The high level of national tax revenue has caused enterprises to engage in "shadow economy" tax avoidance; The ineffective operation of formal enterprises makes employees have to find informal employment channels as a second job to support their families; The lack of legal constraints in economic reform has contributed to the growth of the "shadow economy".
According to the statistics of the Russian Ministry of Internal Affairs, the "shadow economy" of1990-1year has created10%-1%GDP, and the ratio of 1993 has reached 20%. About 60 million people participate in the "shadow economy" in various ways, 30 million people are employed in the "shadow economy", and more than 40,000 enterprises, half of banks and more than 80% joint ventures are connected with organized criminal gangs. Therefore, the scale of Russia's "shadow economy" is shocking.