The Post-Soviet World
The chaotic aftermath of the Soviet collapse — shock therapy, oligarchs, NATO expansion, and the roots of today's conflicts.
Shock Therapy and the 1990s
Russia's transition to a market economy was brutal. Under the guidance of Western-trained economists, Yeltsin launched 'shock therapy' in January 1992 — rapid price liberalization, privatization, and trade opening. The results were catastrophic for ordinary Russians: hyperinflation wiped out savings, GDP fell by roughly 40%, life expectancy for men dropped from 64 to 57 years, and poverty soared.
Privatization created a new class of oligarchs who acquired vast state assets at fire-sale prices. The 'loans-for-shares' scheme of 1995-96 was particularly egregious: a handful of bankers lent the government money in exchange for controlling stakes in major companies, then arranged to keep the shares when the government predictably defaulted. By the late 1990s, Russian capitalism looked less like Western democracy and more like a kleptocracy.
