Russia’s Long Road Toward Resurgence

Russia in the 90’s

The modern day Russian Federation emerged after the collapse of the USSR in 1991. Not only did this change the fate and the standard of life for millions of Soviet people but it also changed the trajectory of development for all mankind. In the first few years of the newly created Russia, the “team of democrats”, with active support from Western countries began its shock economic reforms.

The declared goal of these reforms was to liberalize the Russian [centrally-planned] economy by transitioning it to a market economy. Meanwhile, many believes that the real goal was the seizure of former Soviet property by the “new power holders” and the dismantling of the Soviet industrial economy.

When USSR collapsed, a relatively small group of individuals acquired ownership of tens of trillions of dollars (through a rapid onset of privatization). Losses suffered by the Soviet production complex as a result of its planned destruction were much higher...