As recently as 1990, the Russian ruble was officially worth 16 cents. Today it’s worth less than a penny. Unless confidence is restored in the currency, Yeltsin’s attempt to build a free-market economy will never get off the ground. Foreign investors will shy away, and spiraling inflation will smother homegrown entrepreneurs.
Most administration officials concede the need for a currency-stabilization fund for Russia. The problem is the cost to the West: $5 billion to $7 billion, of which the United States will be expected to kick in nearly half. That price is awfully high for George Bush, at least during this election year. The president is trying to fend off criticism that he worries too much about problems abroad and neglects the home front. Yet if economic distress provokes a right-wing coup, Bush could have a real political problem: the return of the superpower rival.
