Moscow Forms a Rudimentary Exchange for Commodities

The city of Moscow has formed a rudimentary commodities exchange as the first step toward a market economy.

The exchange was created in an attempt to improve the distribution of desperately needed goods, such as construction materials and high-technology equipment, the city’s mayor said at a news conference Saturday. It is a precursor to the dismantling of the centralized economic system, which officials say has taken the city to the brink of collapse.

“We have two enemies to creating a market economy,” said Mayor Gavriil Popov, a respected reform economist. “One is the shadow economy and the other is the administrative system that rules our centralized economy. A commodities exchange will strike a blow to both.”

The exchange is the first fulfillment of reforms promised under the city’s new leadership, elected in March. It is designed to serve as a go-between, bringing buyers and sellers together outside the constrictions of the centrally planned “command-administrative” system.

Critics say the poor distribution of goods and materials is among the most glaring weak points of the Soviet economy.

Popov has vowed that the city will stand in the vanguard of democratic change--even if it means colliding with the Kremlin.

Asked if the central authorities would disapprove of the commodities exchange, Popov replied: “Well, let’s put it this way: No one is asking their permission.”