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Strike, unrest cripple Soviet economy
MOSCOW. Apr 20: Detailed figures released by the Soviet state statistics committee Goskomastat yesterday confirmed spreading strikes and unrest are crippling the country’s economy, reports Reuter.
In the first three months of 1991, compared to 1990, Gross National Product (GNP) fell eight per cent, productivity dropped nine per cent and foreign trade slumped by a third.
"It can be supposed that the universal fall in economic activity witnessed during the first quarter will continue," Goskomastat said.
A growing wave of miners' strikes as well as disruption to
traditional economic links caused by secessionist republics trying to break ties with Moscow have brought the economy to the verge of collapse.
On Monday the Soviet Parliament is due to start discussing a tough anti-crisis programme which includes a
moratorium on all strikes and a ban on protests in working
It also calls for tough action, against republics which have been demanding greater autonomy or Independence and withholding contributions from the central Soviet budget
President Mikhail Gorba-
chev on Monday said that if the strikes were not stopped Immediately, it would be too late.
"The figures for the first quarter bear witness to the extremely complex and contradictory economic situation in the country," Goskomastat said. Brief excerpts, carried by the official Tass news agency, were released on Thursday.
Economic production has been falling steadily over the last two years but the latest figures show the miners’ strike has helped turn the decline into a nosedive.
The miners, who have closed around a third of the country's 600 pits, want big pay rises and Gorbachev's resignation.
The signs of crisis In the economy spread to virtually all spheres," Goskomastat said. "Strikes cost 1.169 million working days In the first three months of the year."
Goskomastat said production of consumer goods and food — both in very short supply across the country — was falling.
The consumer market is in crisis: panic buying has grown, especially towards the end of the quarter, virtually all goods
are In short supply and speculation is growing," It said.
But this was not the only bad news for the already hard-pressed population — collapsing oil production, the country's main hard currency earner, helped cut imports by 45 per cent in the first quarter compared to 1990.
The country also risks running up a huge budget deficit, because most of the increasingly indcpcndcnce-minded Soviet republics, especially the giant Russian Federation, have slashed contributions to the central budget
"Implementation of the Union Budget in the first three months has been extremely unsatisfactory." Goskomastat said.
Republics have only contributed 39 per cent of planned payments to the central government budget and the first quarter deficit of 26.9 billion roubles (45.3 billion dollars) already exceeds the planned maximum for the year of 26.7 billion roubles (45 billion dollars).
Moscow radio said the Russian government's own plan for economic reform, which includes plans to quickly sell off enterprise's