Oligarchic Capitalism In Russia Case Study

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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 …show more content…
With minimal government intervention, oligarchs created monopolies by merging their new business properties that spanned over many industries together. These monopolies were then favored in the limited government regulation of the Russian economy, and subsequently edged out all small businesses. Monopolies became the only companies that could thrive in the economy so no economic competition existed in Russia. This hindered the advancement of business technology, because the monopolies had no reason to improve. The only reason monopolies would adhere to the advancement of technology is if international competitors made new and improved products. Then Russian oligarchs would submit to the innovations in business technology. Oligarch monopolies limited the advancement of business technology and consequently hindered the Russian

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