Eastern Europe, Caucasus and Central Asia, price liberalization, CASE Reports, Russia, stabilization programme, CASE Network Studies and Analyses, Trade, economic integration and globalization

What Went Wrong? The reasons for the Failure of Stabilization in Russia in 1992


When the Gaidar team took over the running of Russian economy in November 1991, its intention was to introduce a stabilzation/liberalization programme very similar to the one which had been implemented with considerable success in Poland in 1990 under Leszek Balcerowicz. Two years later this aim had still not been achieved, and most of the radical reformers and "westernizers" had left the Russian governemtn after the elections of December 1993. In this paper the four main kinds of reasons for Gaidar's failure will be examined.