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Economic System of Russia & US

Since the mid-1980s, the economic system in the former Soviet Union has ostensibly moved toward a more open and capitalistic system. The implementation of capitalism has met with varying degrees of success in the various states which have emerged from the former Soviet Union. In Russia, the once centrally planned economy gave way to markets which were much more open, but the results of those open markets was decidedly mixed. As the Russian economy has encountered problems in recent years, there have been calls for a return to an economic system which is more planned than that which currently exists. This research examines the economic systems of Russia and the United States as a new millenium begins.

In general, Russia was hesitant about implementing market reform. Many Russian citizens actively opposed reforms while some politicians saw market reform as a way to fix the inefficiencies of the old system rather than as a new system. From this standpoint, Russian implemented programs on top of the former system rather than creating a separate system. The goal was to increase consumption standards and become more competitive in the international market; this gave considerable support to those who wanted to reduce military expenditures (Gaddy & Ickes, 1999, p. 44).

One of the most significant impediments to reform was the fact that Russia had labored under a centrally planned economy much longer than many other former members of the Soviet Union. Private agriculture had been nearly eliminated in Russia, and most industries were run by the government. Shifting to private support for agriculture and industry would take time, and many Russians were quickly disillusioned by the higher prices and shortages of goods that rapid reform brought. International aid provided by the International Monetary Fund (IMF) and others often did not specify how the funds were to be used, and the economy drifted without direction as reforms intro...

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Economic System of Russia & US. (1969, December 31). In Retrieved 15:58, February 21, 2017, from