Russian Transition to Capitalism: What Would Have Made It Less Painful?

RUSSIAN TRANSITION TO CAPITALISM:   WHAT WOULD HAVE MADE IT LESS PAINFUL?

CONTENTS

1. INTRODUCTION

2. POLITICAL & ECONOMIC & SOCIAL ISSUES OF POST SOVIET RUSSIA

 SOCIAL WELFARE
 HEALTH CARE
 EDUCATION SYSTEM
 TAX COLLECTION  

3. TRANSITION CHALANGES:   FROM PLANNED ECONOMY TO THE MARKET ECONOMY SYSTEM
 TERMS AND   CONDITIONS   OF THE TRANSITION TO THE MARKET ECONOMY
 PRIVATISATION
 LIBERALIZATION
 MONETARY AND FISCAL POLICY

4. KEY ECONOMIC MISTAKES

5. CONCLUSION

6. APPENDIX

7. BIBLIOGRAPHY

1. INTRODUCTION

The Russian economy experienced tremendous stress as it moved from a centrally planned economy to a free market system. In this paper we will describe the challenges Russia faced during the transition period. The challenges consisted of political battles, a series of economic and social crises, and the poor results that came with many of the reform efforts.
Russia was experiencing three revolutions all at once. First, they were attempting to fashion a new democratic politic system (and truly needed to replace the old Communist-era constitution). Second, they were trying to launch a new capitalist economy. And finally, they were coping with its postimperial status: within a few short years, Russia had lost the Cold War and its superpower position in the world, had given up its influence over Central Europe and neighboring republics that had been part its empire since the 1920s.
In the main section of the paper I   will identify key economic mistakes of the Russian reform processes as they moved toward market economy.   I will also incorporate the key factors that many Western economists described as being essential for the successfully functioning of the market economy. These factors included privatization, liberalization and monetary and fiscal policy. I will then look at the major mistakes made by the Russian government during the transition process. In... [continues]

Read full essay