Paper Topic:

Economics

Running head : GOVERNMENT TRANSITIONS AS A DETERMINANT OF GINI IN USSR AND ALBANIA

A Study on the Government Transitions as a Determinant of Gini in USSR and Albania

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Government Transitions as a Determinant of Inequality in

Russia , established to be a Socialist Republic by the Russian Revolution in the 1960s from Russian Empire , was first converted into centralized planned economy . Still , the basic foundation of its economic system was socialism , following the ideologies of Karl Marx and Friedrich Engels After the revolution

, the Bolsheviks made a move towards the nationalizing of lands . Small parcels of land were controlled by the peasants from aristocracy . The industries employed five workers in all enterprises . After Joseph Stalin , the promoter of the command economy and rapid industrialization , USSR was put into recognition to be one of the two superpowers for they ranked second largest economy in the world U .S . Library of Congress addressed in one of their articles - Historical Background , in the range of years 1950s to 1975 , the GNP of Soviet Union increased with a mean of 5 yearly from a very low starting point

Albania on the other hand emerged from the colonization of the Ottoman Empire . After having been conquered by Italy and being held by the Partisans in 1944 , Albania lived under the fear of Communist government under the successive influence through alliance with Soviet Union and China , till 1960 and 1978 , respectively . It hindered them from moving forward , until freed of captivity and was able to undergo transitions and was able to establish multiparty democracy within their bounds . This has gone into successful treatment of problems regarding unemployment broken down infrastructures , corruption , criminals , and other political matters . In 1991 , it grew into a more developed democratic country , but still , it remains to be one of the poorest European countries . Its background as anti-terrorism may have affected its current economic status . Another reason for the behavior of the income distributions in these two countries its ethnic heterogeneity (Brown , 1997 ,

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The Gini coefficient is used very prominently in to find out the inequality of wealth and income distribution (Midgley , 1997 , __ . A low Gini coefficient signifies the enlargement of the bline between rural and urban sectors , and within the sector itself . As the consumption levels of whatever sectors being compared decrease intersection or similarity , or if there is increase in the stratification , the Gini coefficient also increases (Valisev , 1999 ,

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These two countries which underwent transitions from a centrally planned economy to a generally accepted conventional market economy were determined to have been affected in their income distributions Coexisted were trading and middle-man activity , and private ownership Market disequilibrium is highly probable in the transition state . Other possible outcomes of transition are large positive or negative quasi-rents , and recasting of the taxation and social services , etc (Fleming and Wickleright , 1999 ,

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Fleming and Wickleright (1999 ) also emphasized that institutions and redistributive policies were just among those which underwent change with...

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