The West, and especially the Clinton administration, bears some of the blame for encouraging the reckless rush from communism to raw capitalism. No one can say where this fantastic sum has gone, but for every dollar that has been extended by the West, Russians have deposited at least as much in foreign banks. So far, foreign money has helped postpone reform rather than hasten it. Primakov promises more vigor and vigilance and may well deliver. But financial management in Russia before Primakov was appalling.
Relief is nonetheless justified.
The stakes are too high. Direct supplies of food and medicine should be extended for humanitarian reasons. No money should go to support the currency or the banks. Aid to the government must be tied to economic and political reforms and earmarked for projects that can be monitored. The best course might be to encourage private companies to take up specific ventures, with some substantial portion of their investments to be guaranteed by the U.S. government and conditioned on the appropriate legal and management structures within Russia.