BUSINESSWEEK ONLINE : SEPTEMBER 11, 2000 ISSUE
INTERNATIONAL BUSINESS Widespread Decrepitude ELECTRICITY PROBLEM Exploding gas pipelines, fuel shortages, lack of spare parts, and government-mandated rates that are far below global market prices. PROPOSED SOLUTION Gradually deregulate prices and break up Unified Energy System, Russia's electric monopoly. Foreign investors oppose the breakup plan. RAILWAYS PROBLEM Poor maintenance and shoddy equipment. Some 30% of freight cars, 40% of passenger cars, and 50% of locomotives need to be replaced. PROPOSED SOLUTION Railways Ministry is floating plan to consolidate 17 state railroad entities into a single state-owned company. Critics say the scheme won't attract investors. ROADS & BRIDGES PROBLEM A construction and maintenance fund, which gets $5 billion annually from a national sales tax, is being plundered by regional bureaucrats. PROPOSED SOLUTION The sales tax is being eliminated, and future road building will be supported by federal taxes, over which national officials have direct control. DATA: BUSINESS WEEK _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP					RELATED ITEMS The Crumbling of Russia TABLE: Widespread Decrepitude INTERACT E-Mail to Business Week Online

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