What are the sources of the problems faced by Russia during the transition in 1991?

Question

Russia transition from socialism to capitalism, which begun in 1991, has been fraught with difficulty. Discuss the sources of Russia’s economic troubles and evaluate the government’s plans to improve Russia’s economic performance.

Answer 1

An efficient free market requires honest dealing, and institution, and laws to assure that people behave ethically in the markets. Because Russia had been communist they did not have such institutions in place so when they privatized the result was widespread corruption. This left a few people very rich, but the majority with even less than they had under the old regime, so many people now support a retreat from free market reforms.

Answer 2

Foreign NGOs, GOs and western "advice".

They were doing things in Russia that were 100% illegal if done in the western states. You can't have foreign organizations and states funding and interfering in political structures and business of another country.

And you can understand why Russia is “hesitant” with foreign NGOs and kicking out foreign companies that just “swooped” right in in the 90s.

Edit: And when someone says Russia was communist, you can just tune them out because they're ignorant.

Answer 3

People could not adapt quick enough to the sudden change. The Russians will still stuck with the communism and socialism style of governing and ruling.

Answer 4

mismanagement of economy by communists, no skill in running a market economy, and low oil price

Answer 5

i dnu