With hyperinflation in the Commonwealth of Independent States, it is becoming more obvious that the road from socialism to a free-market economy will be long -- and maybe dangerous.
"There may be food riots," said Allan Rodgers, professor emeritus of geography. "With the move to a market economy, prices have gone up eight to tenfold and salaries have only doubled."
Hunger could cause violence, agreed Simon Duke, assistant professor of political science.
"Since price controls have been lifted, prices have gone up," Duke said. "This opens up the possibility of acute hunger --when there is hunger there is violence."
The inflation is caused by the breakup of the former Soviet Union's central authority, said Barry Ickes, associate professor of economics, adding that since the August coup, output is falling, while prices continue rising.
Because of steep prices, people with limited income can barely afford to survive, Rodgers said.
"Although the United States should help, no one country can put the economy back on its feet," Duke said.
Congress is now debating what action the United States should take.
"Both Republicans and Democrats are saying that because of the recession, the homeless and welfare, we should spend the money at home," Rodgers said, adding that their view is isolationalist.
A surplus of agricultural products and new technology could help the republics. But since it is an election year, President Bush is being cautious about spending, Rodgers added.
"We've shirked our responsibilities," he said. "We have resources that could be used. A reduction in defense budgets with the combination of Western Europe's aid will help."
But money alone will not help the commonwealth, said Jens Drews, political science instructor.
"Nobody knows where the money would go or what it could buy," Drews said. "It would be much better to give them food right now to get them through the winter."
The new republics need financial and agricultural support, Duke agreed.
"They are not stable democracies --we must concentrate on getting them through the winter without chaos," Duke added.
But regardless of foreign aid to the republics, there are still problems with agriculture, Rodgers said.
"The United States, along with other Western countries, should provide wheat and medical supplies just to keep the bloodshed off the streets," Duke said.
Experts disagree with Russian President Boris Yeltsin's contention that the economy will resolve itself soon.
"Yeltsin told the Soviet people to grin and bear it for six to eight months," Rodgers said. "But this is a gross underestimate -- American economists argue it will take three to five years before the economy is (stable)."
Although the transition from socialism to a free-market economy will be difficult, it will get better, Ickes predicted.



