The Dead Hand (2009)

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“We are abandoning mirages and illusions,” he declared. “We are ridding ourselves of the militarization of our life, we have stopped constantly preparing for war with the whole world, and much more besides.” Yeltsin described the grim inheritance from the Soviet Union: devastated farmlands, the economy “gravely ill,” and towering external debt.1 In a gamble with history, Yeltsin attempted to make a rapid leap from failed socialism to a market economy, setting prices free and putting the colossal... stock of state property into private hands. Yeltsin believed it was the only route for Russia to become a normal country, tap into global markets, modernize aging factories and lift living standards. But there were stark, unsettling dislocations. A few tycoons, known as oligarchs, grew wealthy, while millions of workers got their wages months late, if at all, or were paid in barter goods, such as socks and jars of pickles. Even though the new capitalism featured stock markets, private banks, expensive restaurants, luxury cars and sparkling new office towers, the deeper transformation—creating a modern industrial base, building rule of law, civil society and a diversified economy—was excruciatingly difficult and did not come about at first.

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