ABSTRACT
In 1991 ethnic contention, economic chaos, and political conflict brought an end to the Soviet Union, breaking it into fifteen newly independent countries in desperate need of reform. Political reform (where it took place) aimed to create democracy, with mixed results. Economic reform allegedly aimed to create vibrant market economies, but this experiment in post-Soviet market-building has been more complex than originally imagined. After a decade of collapse and corruption (the 1990s), Russia saw economic growth after 2000 thanks to the high price of oil. Petro-dollars mask decrepit technology, problematic practices, and value wasted in unnecessary production.1 In Belarus, the state subsidizes industry in Soviet fashion, maintaining employment and output – but Belarus relies heavily on cheap energy from Russia. The Baltics benefited from foreign investment, while Ukraine suffered incoherent reforms and corruption. East European countries, once Soviet satellites whose loyalty was assured by the Red Army, had reasonable success creating market economies and growth – but they had more experience with economic reform and proto-market structures, and they were willing to become economic satellites of the West.
