Describes Russia’s transition from a centrally planned economy under communist rule to an increasingly market-oriented economy under a more democratic political regime. Can be used to discuss the complementarity of elements of an economic strategy, and the optimal sequence of political and economic reforms. The first section contains a brief overview of Gorbachev’s reform strategy and the political and economic chaos after partial implementation of the relatively weak economic and policy … Read more »

Describes Russia’s transition from a centrally planned economy under communist rule to an increasingly market-oriented economy under a more democratic political regime. Can be used to discuss the complementarity of elements of an economic strategy, and the optimal sequence of political and economic reforms. The first section contains a brief overview of Gorbachev’s reform strategy and the political and economic chaos after partial implementation of the relatively weak economic and political reforms. The second section describes Yeltsin’s radical reform strategy in 1992, the same macroeconomic stabilization, price reform and privatization. Attention is drawn to the partial implementation of this program and the political and economic obstacles to progress. Concludes by asking whether Yeltsin experiments, the power will be successful through new elections and constitutional reform consolidation.
«Hide

from
Alexander Dyck
Source: Harvard Business School
23 pages.
Release Date: 14 February 1995. Prod #: 795089-PDF-ENG
Russia – 1994 HBR case solution

[related_post themes="flat"]