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More Than They Bargained For

* Development of a new political framework, including the negotiation of treaties and of agreements with international monetary institutions.

* Development of a new legal framework, including the establishment of contract and corporate law.

* Preparation for macroeconomic stabilization, including controls of social spending and government credit.

* Small-scale privatization and liberalization programs.

1992

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* Commencement of large-scale Western financial aid ($15-30 billion annually) led by the IMF and contingent upon the continuation of reforms.

* Creation of an independent central bank and a balanced budget.

* Large-scale price liberalization on all but essential consumer goods.

* Opening of the economy to the West, including the creation of a convertible ruble.

1993

* Privatization of large enterprise.

* Conversions of portions of the defense industry into new, non-defense enterprises.

* Upgrading of the infrastructure.

1994-1997

* Intensification of changes previously set in process.

* Development of the social programs required by a market economy.

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