ABSTRACT
One explanation for why the market experiment did not live up to the expectations is that the ambitious policy reforms were thrust upon an unprepared population who, after patiently waiting for recovery to arrive during the early post-communist years, later became critical of the reforms. Although the social effects were obviously disastrous to large segments of the society, they are not sufficient to explain why economic liberalism was eroded in favour of more state regulation. More important I believe, are the orientations and strategic position of the national and regional elites. In order to put the reforms into practice, the Yeltsin government had to rely on these leaders that were enjoying the new power base ensuing from postcommunist democratisation and federal decentralisation. I argue that while the impetus for replacing one type of economy with another came from a small Kremlin leadership, the practical outcome ultimately bore the imprint of the strategic national and regions elites.
