Abstract

Emerging from the dissolution of the Union of Soviet Socialist Republic (USSR) or the Soviet Union, the Russian Federation (Russia) had to contend with huge economic problems. The case discusses the macroeconomic stabilization policies and economic restructuring implemented by Boris Yeltsin, the first President of Russia, to transform its centrally planned economy into one that was more market-based. The case goes on to explain the policy measures introduced subsequently by Vladimir Putin, Russia’s second President. The case discusses Russia’s economic condition under the two Presidents and the impact of the policies implemented by Yeltsin and Putin on the Russian economy. The case ends with a discussion on the challenges facing the Russian economy.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the challenges in transforming a centrally planned economy into a market-based economy
• Analyze the economic policies adopted by Yeltsin and Putin
• Analyze the future challenges facing the Russian economy.

Keywords

Russian economy, Economic restructuring, Macroeconomic stabilization, Centrally planned, Market economy, Boris Yeltsin, Vladimir Putin, Shock therapy, Fiscal management, Oil revenues