ABSTRACT
This chapter explains the liberal and centrist approaches to the economy. It examines the main components of shock therapy. The chapter explores Vladimir Putin's economic agenda. It analyses the development of state corporatism. In 1992 Russia adopted shock therapy to transform its economy rapidly from a centrally planned economy with state or collective ownership of industry and agriculture into a capitalist economy. The next few years brought enormous hardships for the people and Russia seemed like an economic basket case, with some great assets such as oil, gas, and diamonds, gold as well a highly educated and skilled population. In 1998 Russia defaulted on debt payments and devalued its curency, but the economy soon rebounded. When Russia joined the war on terror in 2001, the USA and European Union said that in the event of trade disputes they would treat Russia as a normal market economy instead of as a non-market or state trading economy.
