David M. Kotz

David M. Kotz teaches economics at the University of Massachusetts-Amherst. In the following viewpoint, he blames Russia’s economic difficulties, including the collapse of its currency in August 1998, on economic reforms made beginning in 1991 by the government of President Boris Yeltsin. He argues that Yeltsin’s reforms—abolishing central planning, reducing public spending, eliminating controls on imports and capital, and privatizing state enterprises—were intended to quickly replace the Communist system of the former Soviet Union with a capitalist economy. However, they have instead resulted in an economic shambles marked by massive declines in economic investment and activity and the enrichment of a small and corrupt group of insiders.

As you read, consider the following questions:

1. How have average Russians been affected by Russia...