By Mark Weisbrot
Tensions between the United States and Russia have a long history, but one only need go back to the early nineties to see how our own government threw away its chance to have a better relationship with post-Communist Russia after the collapse of the Soviet Union.
In 1992, inflation in Russia was spiraling into the triple digits and the economy was collapsing. Economist Jeffrey Sachs, who was advising the government, offered a plan to get inflation under control which centered around stabilizing the exchange rate - a key element of a potentially successful anti-inflationary policy. To do this, though, it is necessary to have a good supply of foreign exchange reserves - i.e. dollars -- and Sachs thought he might get a commitment from the United States to provide these reserves. He was wrong. He didn't get the stabilization fund, nor the immediate suspension of interest payments, debt cancellation, or other aid he was seeking from the G-7.
Looking back on those events, Sachs later noted that "Richard Cheney, then the secretary of defense, and his deputy, Paul Wolfowitz, were drafting the controversial Defense Planning Guidance, which aimed to ensure long-term U.S. military dominance over all rivals, including Russia. . . "
"I had supposed in 1991 and 1992 that the United States would be rooting for Russia's success as it had been rooting for Poland's. With hindsight, I doubt that this was ever the case."
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