{ "id": "RL30112", "type": "CRS Report", "typeId": "REPORTS", "number": "RL30112", "active": false, "source": "EveryCRSReport.com", "versions": [ { "source": "EveryCRSReport.com", "id": 105349, "date": "1999-05-05", "retrieved": "2016-05-24T20:45:26.763941", "title": "Russia's Economic and Political Transition: U.S. Assistance and Issues for Congress", "summary": "The adoption by Russia of a democratic political system and free market economic system is an\nobjective of U.S. foreign policy facilitated by the foreign aid program funded under the New\nIndependent States (NIS) account of the foreign operations appropriations. Since 1992, an estimated\n$2.3 billion has been obligated to assist this transition. \n The history of the aid program has been characterized by a declining amount of resources,\nmultiple objectives, implementation problems, and mixed results. Some programs have had little\npositive impact and others have been affirmatively appraised by many observers. Most assistance\nactivities have exposed many Russians to previously inaccessible U.S. ideas and information. \n In 1997 and 1998, there were several important developments in Russia. The 89 regions of\nRussia became increasingly decentralized and adopted reforms at their own pace. Small and micro\nbusinesses grew rapidly, and non-government organizations also grew and began to take on greater\nadvocacy roles. In response, the State Department's NIS Coordinator introduced the Partnership\nfor Freedom (PFF) and the Regional Investment Initiative (RII). The former stressed support for\ngrassroots partnerships between U.S. and Russian business and NGOs, while the latter selected three\nregions for focused U.S. assistance to improve the business and investment environment.\n In 1999, Congress may consider several issues. First, what is the impact of the August 1998\nfinancial crisis on the aid program and how might the program change to meet new demands? \nSecond, what are the lessons of the PFF and the RII experiences that may be continued or applied\nmore widely in the Russia aid program? Third, what legislative conditions on assistance might affect\ncontinuation of the transition aid program?\n The August crisis has caused the State Department to reexamine the program. More funds are\nbeing targeted on helping non-governmental organizations survive this difficult period. The PFF and\nRII were both active in Novgorod and this experience suggests a number of lessons applicable to the\nwhole Russia program. These include that assistance should be designed to meet local needs and\nto focus on reformers to create models of success, that aid for economic growth and civil society\ncomplement each other, that exposing Russians to the United States is a positive force for reform,\nand that change at the federal level is necessary to make reform work at the local level. It should\nalso be noted that some legislative conditions on assistance for instance that Russia should end\nthe sale of nuclear reactor technology to Iran would cut or terminate the aid program in any form.", "type": "CRS Report", "typeId": "REPORTS", "active": false, "formats": [ { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/RL30112", "sha1": "a2c1c1a1289e6c7ea9696bb086409f11fd4f7cc8", "filename": "files/19990505_RL30112_a2c1c1a1289e6c7ea9696bb086409f11fd4f7cc8.pdf", "images": null }, { "format": "HTML", "filename": "files/19990505_RL30112_a2c1c1a1289e6c7ea9696bb086409f11fd4f7cc8.html" } ], "topics": [] } ], "topics": [ "Appropriations", "Economic Policy", "Environmental Policy", "Foreign Affairs" ] }