An important Russian economist and politician takes a long view of economic history and Russia's development. It is not so easy to take the long view of socioeconomic history when you are participating in a revolution. For that reason, Russian economist Yegor Gaidar put aside an early version of this work to take up a series of government positions—as Minister of Finance and as Boris Yeltsin's acting Prime Minister—in the early 1990s. In government, Gaidar shepherded Russia through its transition to a market economy after years of socialism. Once out of government, Gaidar turned again to his consideration of Russia's economic history and long-term economic and political challenges. This book, revised and updated shortly before his death in 2009, is the result. Gaidar's account of long-term socioeconomic trends puts his country in historical context and outlines problems faced by Russia (and other developing economies) that more developed countries have already encountered: aging population, migration, evolution of the system of social protection, changes in the armed forces, and balancing stability and flexibility in democratic institutions. This is not a memoir, but, Gaidar points out, neither is it “written from the position of a man who spent his entire life in a research institute.” Gaidar's “long view” is inevitably informed and enriched by his experience in government at a watershed moment in history.

“What was the revolution of the 1990s for Russia?” writes Yegor Gaidar, the first post-Soviet prime minister of Russia and one of the principal architects of its historic transformation to a market economy. “Was it a hard but salutary road toward the creation of a workable democracy with workable markets, a way for Russia to develop and survive in the twenty-first century? Or was it the prologue to another closed, stultified regime marching to the music of old myths and anthems?”

After the collapse of the Soviet Union a team of young economic reformers led by Yegor Gaidar worked to create a new economic future for Russia. Against an overwhelming threat of looming hunger and civil war, they created a market economy which is still in place today. In the face of crisis, a process of 'shock therapy'- involving the end of price regulation, the introduction of privatisation and a reduction in public spending - appeared necessary. Their plans have been the subject of controversy ever since - the path to the new economy was not smooth and Russia continued to struggle with economic crises throughout the 1990s. Yet Gaidar's plans have been widely praised for saving the country from complete collapse. For the first time in this book, the participants in the process reveal their experiences during those frantic days, their insights into Yegor Gaidar and of the formation of post-Soviet Russia. In doing so, this book provides a unique perspective on contemporary Russia, making it an indispensable resource for understanding its economic and political complexities.

"My goal is to show the reader that the Soviet political and economic system was unstable by its very nature. It was just a question of when and how it would collapse...." —From the Introduction to Collapse of an Empire The Soviet Union was an empire in many senses of the word—a vast mix of far-flung regions and accidental citizens by way of conquest or annexation. Typical of such empires, it was built on shaky foundations. That instability made its demise inevitable, asserts Yegor Gaidar, former prime minister of Russia and architect of the "shock therapy" economic reforms of the 1990s. Yet a growing desire to return to the glory days of empire is pushing today's Russia backward into many of the same traps that made the Soviet Union untenable. In this important new book, Gaidar clearly illustrates why Russian nostalgia for empire is dangerous and ill-fated: "Dreams of returning to another era are illusory. Attempts to do so will lead to defeat." Gaidar uses world history, the Soviet experience, and economic analysis to demonstrate why swimming against this tide of history would be a huge mistake. The USSR sowed the seeds of its own economic destruction, and Gaidar worries that Russia is repeating some of those mistakes. Once again, for example, the nation is putting too many eggs into one basket, leaving the nation vulnerable to fluctuations in the energy market. The Soviets had used revenues from energy sales to prop up struggling sectors such as agriculture, which was so thoroughly ravaged by hyperindustrialization that the Soviet Union became a net importer of food. When oil prices dropped in the 1980s, that revenue stream diminished, and dependent sectors suffered heavily. Although strategies requiring austerity or sacrifice can be politically difficult, Russia needs to prepare for such downturns and restrain spending during prosperous times. Collapse of an Empire shows why it is imperative to fix the roof before it starts to rain, and why so

Yegor Gaidar, the first post-Soviet prime minister of Russia and one of the principal architects of its historic transformation to a market economy, here presents his lively account of governing in the tumultuous early 1990s. Though still in his forties, Gaidar has already played a pivotal role in contemporary Russian political history, championing the cause of dramatic economic reform, aggressive privatization of state enterprises, and painful fiscal discipline in the face of widespread popular resistance. Gaidar’s youthfulness, energy, and daring are symbolic of a new phenomenon in Russian politics - the emergence of a younger generation of politicians with a distinctly technocratic bent, looking firmly to the United States and Europe for inspiration and sharing little of the old generation’s nostalgia for Communist stability. It was largely the implementation of Gaidar’s policies that drove the Russian parliament to rebel against Boris Yeltsin in 1993, leading to the bloody tank assault on the parliament itself. Though Yeltsin prevailed, it was clear that the political and social costs of “shock therapy” were too great for Russia’s fragile democracy to bear, and Gaidar himself was ousted to appease the conservatives. His unfinished agenda was put on hold, though he later returned when Yeltsin needed to placate international financial forces. Gaidar remains active in Russian politics, having formed his own political party, Russia’s Democratic Choice. In this book, he brings his story through Yeltsin’s cliffhanger re-election in 1996, and assesses the still-precarious state of the market reforms and democratic politics.

For centuries, dictators ruled Russia. Tsars and Communist Party chiefs were in charge for so long some analysts claimed Russians had a cultural predisposition for authoritarian leaders. Yet, as a result of reforms initiated by Mikhail Gorbachev, new political institutions have emerged that now require election of political leaders and rule by constitutional procedures. Michael McFaul traces Russia's tumultuous political history from Gorbachev's rise to power in 1985 through the 1999 resignation of Boris Yeltsin in favor of Vladimir Putin. McFaul divides his account of the post-Soviet country into three periods: the Gorbachev era (1985-1991), the First Russian Republic (1991-1993), and the Second Russian Republic (1993-present). The first two were, he believes, failures—failed institutional emergence or failed transitions to democracy. By contrast, new democratic institutions did emerge in the third era, though not the institutions of a liberal democracy. McFaul contends that any explanation for Russia's successes in shifting to democracy must also account for its failures. The Russian/Soviet case, he says, reveals the importance of forging social pacts; the efforts of Russian elites to form alliances failed, leading to two violent confrontations and a protracted transition from communism to democracy. McFaul spent a great deal of time in Moscow in the 1990s and witnessed firsthand many of the events he describes. This experience, combined with frequent visits since and unparalleled access to senior Russian policymakers and politicians, has resulted in an astonishingly well-informed account. Russia's Unfinished Revolution is a comprehensive history of Russia during this crucial period.