BPEA | 1991 No. 2

Economic Reform in the USS and the Role of Aid

Stanley Fischer
Stanley Fischer Vice Chairman of the Board of Governors of the Federal Reserve System

1991, No. 2

After describing two alternative scenarios for the next few years, I
discuss reformst hatc an be undertakenw ithint hose frameworksa nd the
role of Western assistance. I argue that although many details of the reform
plans will have to wait for greater clarity about the economic structure
linking the successor states of the Soviet Union, there is much that
the republics and whatever central authority emerges can do to implement
parts of the pre-coup reform strategy. Similarly, although general
balance of payments support from the West cannot be delivered until the
recipients are identified, there is an important-and by now generally
recognized-role for immediate Western involvement through the provision
of humanitarian aid and technical assistance. I conclude by
stressing the need for coordination of Western assistance and proposing
a coordinating mechanism.