Post-Soviet Economic Shift

[GiantMonkeyMan]

Hi comrades. I've been trying to get my head around the economic characteristics of the Soviet Union and its successor states and how the collapse of the Soviet Union changed or altered this. What, if any, change occured when the Soviet Union collapsed?

I confess I don't know as much about the history as I do about other periods but I think it's an important question. I know there are various theories (SWP call it a 'sideways shift of capital' etc) so it'd be great if various tendencies could lay out their opinions in a clear manner for me so I can come to my own decision based on my understanding. Thanks.

[tuwix]

It is not so easy. I'd divide those countries for Baltic states and the rest. Baltic states which was part of the Soviet Union are members of the European Union now. Their citizens are proud of that and get many benefits of that. The EU give money of investments and beside unemployment and periodical crises recognize their situation as good.
The rest is divided. There is great nostalgia for the Soviet Union because there was no unemployment. Alcohol was cheaper and life was easier.
In terms of economy, the former Soviet Union's bureaucrats have overtaken former state property and have become billionaires in dollars in period of few years. But there is division between those bureaucrats who have economy and those who have power over a state.

[GiantMonkeyMan]

Thanks for the reply although I'm not sure if that's what I was looking for. Basically: the wall goes down and then what happened? Did it change from state-capitalism to free market capitalism? Was it a degenerated workers' state that finally lost the last vestiges of worker control and 'reverted back' to capitalism? I'm trying to understand the nature of the economy in the Soviet Union before and after its collapse.

I understand that these bureaucrats have essentially become the oil barons that we know and despise but what were the characteristics of that change, in your opinion(s)? Cheers again.

[tuwix]

Gas barons, too. But I guess you want to ask how did it happen.

Well, state capitalism was economically ineffective. Division of development between classic capitalist state and state capitalist was growing. Due to central planning, there was lack of goods in shops. But the most important thing was that the Soviet Union was losing the Cold War. The Soviet Union had no response to Reagan's Star Wars plan. Among the soviet leaders there emerged a need for a change. And they've chosen Gorbatchev. He wanted to maintain status quo increasing effectiveness of economy. But he went too far. He started privatizations. The goods started to be in shops but not many could afford them. Eventually due to coup de etat and agreement between local leaders, the Soviet Union collapsed.