The Disintegration of the Soviet Union and Rise of Capitalism in Russia

Atmika Patnaik
O.P. Jindal Global University

Volume III, Issue IV, 2020

This paper seeks to provide evidence that the Soviet Union economy prior to its disintegration was sinking and was economically unstable for political, social and mostly economic reasons. It intends to show via the usage of economic tools such as graphs as well as world bank statistics and reports, the transition of socialism to capitalism with special reference to the economic progress made in Russia and simultaneously draw parallels between both the models. Such transition was followed by a lot of chaos as the shift from collective ownership to private and profitable ownership fetched in psychological shock in absolute abundance. This paper also closely looks at the increase in the Gross Domestic Product (GDP) in Russia and goes on determine how growth in GDP can only go to ensure economic advancement but does not serve as a determinant of overall well-being.

Keywords: Analysis, Evidence, Disintegration, Socialism, Capitalism, Progress, GDP, Well-being.