Twenty years ago, Soviet President Mikhail Gorbachev resigned, the Soviet Union ended, and Russia began an imperfect transition to democratic capitalism. And yet the recent protests – somewhat similar to those that preceded the Soviet collapse – provide grounds for cautious optimism about the future.
MOSCOW – Twenty years ago, Soviet President Mikhail Gorbachev resigned, the Soviet Union ended, and Russia began an imperfect transition to democratic capitalism – a transition that has proven to be far more difficult than expected. And yet the recent protests – somewhat similar to those that preceded the end of the Soviet Union – provide grounds for cautious optimism about the future.
So, what lessons can we draw from the successes and failures of Russia’s last two decades of post-Soviet transition? And what lies ahead?
The first lesson is that market competition, responsible macroeconomic policy, and private enterprise generally work. Market reforms eventually resulted in historically high growth rates. While high commodity prices played a part, privatized and new enterprises were the fastest-growing part of Russia’s post-communist economy, and the government played an important role by ensuring macroeconomic stability, maintaining a balanced budget, and using oil revenues to create significant foreign-currency reserves.
We hope you're enjoying Project Syndicate.
To continue reading, subscribe now.
Subscribe
Get unlimited access to PS premium content, including in-depth commentaries, book reviews, exclusive interviews, On Point, the Big Picture, the PS Archive, and our annual year-ahead magazine.
Already have an account or want to create one?
Log in
MOSCOW – Twenty years ago, Soviet President Mikhail Gorbachev resigned, the Soviet Union ended, and Russia began an imperfect transition to democratic capitalism – a transition that has proven to be far more difficult than expected. And yet the recent protests – somewhat similar to those that preceded the end of the Soviet Union – provide grounds for cautious optimism about the future.
So, what lessons can we draw from the successes and failures of Russia’s last two decades of post-Soviet transition? And what lies ahead?
The first lesson is that market competition, responsible macroeconomic policy, and private enterprise generally work. Market reforms eventually resulted in historically high growth rates. While high commodity prices played a part, privatized and new enterprises were the fastest-growing part of Russia’s post-communist economy, and the government played an important role by ensuring macroeconomic stability, maintaining a balanced budget, and using oil revenues to create significant foreign-currency reserves.
We hope you're enjoying Project Syndicate.
To continue reading, subscribe now.
Subscribe
Get unlimited access to PS premium content, including in-depth commentaries, book reviews, exclusive interviews, On Point, the Big Picture, the PS Archive, and our annual year-ahead magazine.
Already have an account or want to create one? Log in