THE RUSSIAN ECONOMIC ENVIRONMENT AND THE COLLAPSE OF THE SOVIET UNION: A RETROSPECTIVE LOOK

The disintegration of the Soviet Union was certainly one of the most incredible events of the 20th century. Excluding wars, one of the greatest upheavals of any major country in modern times took place in the former Soviet Union. There was no place in history in which such a large scale change had come from political, economic, and social collapse without armed conflict. The impact of the social, economic, and political changes on both Russia and the rest of the world is still being felt even thirty years after the breakup. However, it was almost impossible to analyze the Russian market during the transition because so much was in the underground economy and not reported. Much of this paper relies on the authors’ first-hand, experience while doing research and conducting seminars during the transition period in Russia and former Soviet republics. The authors, having experienced first-hand the changes and the failures of various reforms, foresaw that Russia would return to its cultural tendencies of authoritarian rule and that this would prevent a real market economy from being created. This research was unique at a time in which the future of Russia was at stake. It allowed the authors to understand the dynamics of Russia at the time. It gave insight into the two worlds of Russia, the official Moscow impressions of reality as well as the real thoughts, opinions and feelings of the people of Russia. Because of the timing, it was perhaps the only definitive research of this nature done at the time inside Russia by a foreigner, but also outside the official channels. The analysis in this study, as well as the background information it contains, provides a unique perspective on the real conditions and concerns inside Russia during the breakup of the Soviet Union and the transition period.