December 29, 2021
What Putin Learned From the Soviet Collapse
When the Soviet Union dissolved 30 years ago this month, on December 25, 1991, its end followed decades of economic dysfunction. Soviet leader Mikhail Gorbachev, hoping to implement reforms, referred to the 1970s and 1980s as zastoi, the era of stagnation. Yet though he recognized the problem, Gorbachev couldn’t save the ailing socialist system. Indeed, his failed attempt at systematic reform ultimately led to the Soviet Union’s collapse.
On the surface, Russia’s economy appears similarly dysfunctional today. Per capita incomes have not improved over the past decade. Russia’s share of global output has declined since 2008. And large sectors of the economy remain technologically backward or in desperate need of modernization. The general economic state could once again be described as “stagnation.”
Just as Communist Party leaders in Beijing have studied Soviet history in an effort to avert its repetition, so have leaders in the Kremlin.
Yet Russian President Vladimir Putin and his government are unlikely to suffer the same fate as their Soviet forebears.
They have learned the lessons of failed Soviet attempts to reverse decline in the 1970s and 1980s, and many key attributes of the Russian economy and Russian economic policy reflect a desire to avoid repeating the Soviet experience under Gorbachev. As the Russian economist Sergei Guriev recently remarked, “Russia’s macroeconomic policy is much more conservative, inflation is under control, there are large reserves, a balanced budget and no external debt,” and as a market economy Russia is “much more efficient and resilient” than the Soviet Union.
Read the full article from Foreign Affairs.
More from CNAS
-
Trump and the War in Ukraine with Michael Kofman and Robert Lee
Podcast
More than 1000 days into the War in Ukraine, questions about continued support for the Ukrainian effort and the prospect of a negotiated settlement in the months to come have ...
By Andrea Kendall-Taylor, Jim Townsend, Rob Lee & Mike Kofman
-
RUSI Recording: The Impact of the U.S. Presidential Election on European Security
Video
Jim Townsend, an adjunct senior fellow in the CNAS Transatlantic Security Program, joins RUSI to discuss the impact the next US presidential administration will have on NATO, ...
By Jim Townsend
-
Sharper: Trump 2.0
Commentary
Donald Trump's return to the White House is widely expected to reshape America's global priorities. With personnel choices and policy agendas that mark a significant break fro...
By Charles Horn & Gwendolyn Nowaczyk
-
More Escalation in Ukraine: British Missiles and U.S. Land Mines
Podcast
Jim Townsend, adjunct senior fellow in the Center for a New American Security Transatlantic Security Program, joins to discuss British long-range missiles and U.S. land mines ...
By Jim Townsend
