ABSTRACT

In this chapter I analyze the process of economic transformation in Russia since the mid-1980s, relying on the theoretical framework proposed by János Kornai and presented in Chapter 1. According to Kornai, reforms of socialist economies must address such issues as decentralization, overcoming accelerated growth, price reform, property reform, and democratization, and unless socialist nations succeed in addressing all these issues, their efforts to institute reform are likely to end in failure.