Question by Quinn: How has the former Soviet Union hindered Russia’s transition to a capitalist economy?
In what ways has the centrally planned economy of the former Soviet Union hindered Russia’s transition to a capitalist economy?
Answers and Views:
Answer by hair™
communism is better than capitalism
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zingis says
Spitballing here, but likely the fact that had not had a capitalist tradition for 8 or 9 decades added to the fact they had no capitalist infrastructure (independent banks, stock markets, business legal system) would have made the transition tough. On top of that, there was the problem of how to disperse the state owned natural and capital resources. They had no really good way of doing that so the politicos tended to simply give up a lot of those resources to their buddies (cronyism and the creation of the oligarchs).
Peace
Conce says
Because the old system was not working ! period..
SDD says
There are still a lot of people in power who prefer to allocate resources by political decision making rather than economic decision making. And much of the population isn't used to having to produce something in order to get paid.