Great Auction: The Inside Story of Russia's Transition

Author: Stieglitz Friedrich
Publisher:
Publish Date: 2002-10-01
Features: Some people (including myself) once naively believed that as long as a market economy was established, any kind of market economy would ensure economic prosperity and the happiness of the people. But the reality is not like that. Market economies have good and bad aspects. During the transition from a planned economy to a market economy, there can be poverty and detours. One of them is deviating from the normative, rule-of-law market economy direction, evolving into what is known as oligarchic capitalism. Friedrich's portrayal is profound and vivid, providing readers with living materials to deeply understand how Russia collapsed from the communist system and slid into an unclear direction. In the 1990s, the Soviet Union, which covered one-sixth of the world's land area, underwent tremendous changes. Yeltsin went onto the streets, climbed into a tank to deliver a speech, and became a classic historical scene. However, after the excitement, the people were quickly awakened by the harsh reality: the ruble plummeted, the Chechen war broke out, oligarchs and bandits ran rampant, and doctors and teachers couldn't receive their salaries. If this is capitalism, then why would so many Russians prefer to return to the past. The social order of the new Russia did not descend from the heavens but was established by a few in power—business oligarchs and young reformers. The oligarchs were shrewd businesspeople who skillfully navigated various factions and ultimately seized Russia's vast natural wealth. The young reformers were a group of ambitious economists who put their crazy theories into practice, sometimes bringing encouraging results and sometimes causing great destruction. This book tells the stories of these two types of people. At a critical juncture in history, the reformers failed to seize the golden opportunity, and their mistakes cost Russian society a heavy price, one that will take the efforts of future generations to repay.