Essay about Russia 's Form Of Oligarchic Capitalism

1606 Words Dec 12th, 2016 7 Pages
The Soviet Union was an impressive empire; it transformed a once backwards nation, Russia, into an industrialized social state. Although the Soviet Union made great advances, the nation ultimately failed and dissolved in 1991 for needs of social reformation. The Soviet Union adopted its new name, Russia, and created a new government and a new economic policy. The new economic policy established was a form of oligarchic capitalism. This case study is to help examine Russia’s form of oligarchic capitalism from its beginnings to its predicted future. Oligarchic capitalism in Russia was created when the social conditions of the Soviet Union were too horrendous for the common people. The transitional government understood that the new country needed a different economic policy, as economic troubles pursued throughout the era of the Soviet Union. Transitional leaders decided that the new economy needed to become “a mixed system combining competitive markets’ mechanisms with active state intervention” (Menshikov 68). This was the ideal for Russia’s new economy, but because of situational factors, this type of economy did not occur. Instead, oligarchic capitalism took form because of the transitional leaders’ desire to quicken the whole process. The ideal for the leaders was to fasten the process of privatization. A quick privatization of the old government property created a vacuum in Russia, and the vacuum allowed individuals to have the opportunity to grab land for…

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