What was Russia’s economy like before and after the Soviet Union fell?
Before the fall of the Soviet Union, Russia had a centrally planned economy that was largely controlled by the government. The economy was characterized by state ownership of most industries, collective farms, and central planning of production and distribution of goods and services. The economy was highly inefficient, with shortages of basic goods, poor quality products, and lack of innovation.
After the fall of the Soviet Union in 1991, Russia transitioned to a market economy. This transition was accompanied by economic shock therapy measures, including liberalization of prices, privatization of state-owned assets, and opening up of the economy to foreign trade and investment. However, the transition was not smooth, and Russia experienced a deep economic crisis in the 1990s, marked by hyperinflation, unemployment, and a sharp decline in GDP.
In the years following the economic crisis, Russia’s economy gradually stabilized and began to grow again. The country experienced periods of economic growth fueled by high oil prices, which led to increased government revenue and investment in infrastructure and development projects. However, the economy remained heavily dependent on oil and natural resources, leading to vulnerability to fluctuations in global commodity prices.
Overall, Russia’s economy before the fall of the Soviet Union was characterized by inefficiency and stagnation, while after the collapse of the Soviet Union, the country transitioned to a market economy with periods of growth and instability.