Russia's Capitalist Revolution. Why Market Reform Succeeded and Democracy Failed
| Author | John Odling-Smee |
| Position | Former Director, IMF European II Department |
| Pages | 53 |
Page 53
Anders Aslund: Peterson Institute for International Economics, Washington, D.C., 2007, 356 pp., $26.95 (paper).
The transformation of the soviet Union into 15 independent countries that have market economies and democratic, or at least noncommunist, political systems is, inevitably, a process stretching over many years. An assessment of progress at one point in time may differ from that made at another time. thus, the despair about Russia that many Russians and others felt during the chaotic 1990s has given way to greater optimism in the current decade. As Vladimir Putin's presidency ends, it is timely to look back over the entire period of Russia's transition.
The first great virtue of Anders Åslund's book is that he reviews all 22 years since Mikhail Gorbachev's early reforms in 1985. the first seven of his eight chapters are arranged chronologically, with two on the Gorbachev period, three-plus on Boris Yeltsin, and a little less than two on the Putin period.
This arrangement enables him to trace the consequences of the reforms over many years. For example, Gorbachev's economic reforms created a rent-seeking machine that enabled savvy businessmen to buy oil and other raw materials at controlled prices and sell them abroad at world prices.
These and similar practices became entrenched and compromised subsequent steps toward genuine market mechanisms. Åslund's longer view contrasts with the shorter perspective of those who came to Russia in the 1990s and wanted to attribute adverse outcomes to Yeltsin's reforms rather than to the deeper transformation taking place.
The second great virtue of the book is that Åslund is enormously knowledgeable about Russia. Not only does he know the literature (the bibliography contains more than 400 references), but he also knows many of the Russian actors and has spent much time in Russia. His account of developments and policies throughout the 22-year period reflects this knowledge as well as his analytical skills. Moreover, he writes in a clear and interesting way that keeps the reader engaged.
Åslund has a more positive view of Russia's economic transition than many writers...
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