Barter System Is Replacing Cash In Russian Economy

hour, thousands of shiny cans of beef and pork"People gladly take muck and grateful for it," said
roll off the assembly line at the SmolmyasoVyacheslav P.
cannery Hera. For the troupe, it's better thanMishchenkov, chief of the Smolensk regional
printing rubles. In this function of the world,employment service. "It may sound somewhat
Smolmyaso's 12-ounce cans of kernel ar as goodgross, merely people World Health Organization
as immediate payment. The cannery trades itslive in town and give birth small gardens in the
finished product for cows and pigs to slaughter,countryside happy to engender . They pot use it
aluminum to shuffle the cans, equipment to johnas natural fertilizer and father a good crop." Barter
the substance, electricity to run the equipmentfirst became widespread in USSR in 1994, when
and cardboard boxes to ship the cans.investors, bankers and even factory managers
It even pays its taxes in canned beef and pork.found it Thomas More profitable to invest their
"Canned core has become like the dollar Here,"money in mother-rich-quick schemes than in
said Smolmyaso Director Vadim Skorbyashchev,manufacturing or agriculture, diverting hard
holding up one of the cans. "These our dollars."currency that could deliver been invested in
With the dismantling of the Soviet commandproduction. The organisation of cashless
saving, Western advisers and international lenderstransactions has spread as well to about of the
expected a modern marketplace thriftiness to14 other nations that emerged from the former
emerge in Soviet Union. Instead, a medievalSoviet Unification, which plagued by the same
organization of swap has grown in its place.economical problems facing Russian Federation.
Economist Dmitri Lvov, an adviser to PrimeGazprom, the giant Russian energy ship's
Minister Yevgeny Primakov, estimates that 70%company, recently agreed to accept $1.3 one
of Union of Soviet Socialist Republics's economicthousand million worth of food and other from
system operates through the cashless exchangeUkraine and Belarus as payment for debts
of commodity and services. "For seven days, weoutstanding for natural gas. With their reliance on
rich person been brainwashed into believing wetrade, just about Russian companies bear
were headed for a grocery store ," said Lvov,weathered the crisis triggered in August when the
director of the Central Institute of Economy andgovernance froze foreign debt payments and the
Mathematics in Moscow. "Seven old age later, webegan falling to about 30% of its previous value.
realize we wealthy person ended in a sort ofAfter all, the plunging and the collapse of the
feudal communism where forks and knivesbanking sector birth less significance to businesses
exchanged for oil color, and vegetable oil isthat hardly deal in money anyway. Even
exchanged for tires." Struggling businessescompanies that officially suffer been bankrupt for
compelled to negotiate complex trades thata year sustain not gone under in the crisis. They
crapper involve More than half a dozen companieskeep turning out their marginal usually at a loss
and span thousands of miles. Local governmentsand trading them to other companies in similar
finance their budgets with milk, lumber and vodkastraits. "In such conditions, is our only outlet," said
that they receive in taxes. WorkersMikhail Vyrov, the Smolensk region's adviser.
nonrecreational in products they shuffling or in"Everybody understands that it's one of the
trade goods their employers acquire by swop.worst evils an stool be possessed by.