Economy
During the war, the Chechen economy fell apart. Gross domestic product, if reliably calculable, would be only a fraction of the prewar level. Problems with the Chechen economy had an effect on the federal Russian economy—a number of financial crimes during the 1990s were committed using Chechen financial organizations. Chechnya has the highest ratio within Russian Federation of financial operations made in U.S. dollar to operations in Russian rubles. There are many counterfeit U.S. dollars printed there. In 1994, the separatists planned to introduce a new currency, but that did not happen due to Russian troops re-taking Chechnya in the Second Chechen War. As an effect of the war, approximately 80% of the economic potential of Chechnya was destroyed. Much of the money spent by the Russian federal government to rebuild Chechnya has been wasted. According to the Russian government, over $2 billion was spent on the reconstruction of the Chechen economy since 2000. However, according to the Russian central economic control agency (Schyotnaya Palata), not more than $350 million was spent as intended. The economic situation in Chechnya has improved considerably since 2000. According to the New York Times, major efforts to rebuild Grozny have been made, and improvements in the political situation have led some officials to consider setting up a tourism industry, though there are claims that construction workers are being irregularly paid and that poor people have been displaced. See the main article Grozny.
Read more about this topic: Chechnya
Famous quotes containing the word economy:
“It enhances our sense of the grand security and serenity of nature to observe the still undisturbed economy and content of the fishes of this century, their happiness a regular fruit of the summer.”
—Henry David Thoreau (1817–1862)
“War. Fighting. Men ... every man in the whole realm is in the army.... Every man in uniform ... An economy entirely geared to war ... but there is not much war ... hardly any fighting ... yet every man a soldier from birth till death ... Men ... all men for fighting ... but no war, no wars to fight ... what is it, what does it mean?””
—Doris Lessing (b. 1919)
“Cities need old buildings so badly it is probably impossible for vigorous streets and districts to grow without them.... for really new ideas of any kind—no matter how ultimately profitable or otherwise successful some of them might prove to be—there is no leeway for such chancy trial, error and experimentation in the high-overhead economy of new construction. Old ideas can sometimes use new buildings. New ideas must use old buildings.”
—Jane Jacobs (b. 1916)