ABSTRACT
The focus on implicit elements in the pre-reform economy has tended to paint a picture of Russian economic reform that is significantly rosier than that provided by the standard commentaries. The large percentage of Soviet output that was devoted to the military has made this sector a natural target for reformers. The dissolution of the Soviet Union left the fate of military conversion uncertain, and there was little progress through 1992. During the reform period, Russia has greatly liberalized the system of foreign trade. Trade in foreign currencies at market-determined rates is allowed, so the rouble has achieved a good deal of convertibility. A fixed exchange rate is not a necessary component of rouble convertibility. Government involvement in economic production and distribution in the former Soviet Union remains extensive, despite many years of partial reforms and widespread private activity. Technical assistance in the economics realm may differ substantially depending on who provides the assistance.
