Down and Out in Russia

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SERGEI GUNEYEV FOR TIME

Vladimir Putin: Getting ready to start selling arms to Iran

Back in the 1970s, Russian author Vladimir Voinovich wrote in The Life and Extraordinary Adventures of Soldier Ivan Chonkin, his satirical novel on Soviet life: "Things on the collective farm were turning out bad. Well, not really all that bad, one could even say fine, but worse and worse every year."

President Vladimir Putin lauds Russia's industrial growth of 5.7% over the past year. Official statistics, released earlier this month, claim 5.9% growth in average income. Listening to these accounts on state-run TV, I should feel comforted. But once I go shopping, or start paying my bills, I'm beginning to feel like Putin and I live in two different countries. The government estimates 2001 inflation at 18.6%. But the real costs of living have gone far beyond that. As of the beginning of this year, prices started climbing further. The monthly rate for home telephones has gone up by 15%. Retail prices for print media and books are expected to go up by 50 to 60%. Railway tickets have gone up by 30%. Air fares are going up by at least 12%. Food prices are skyrocketing.

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