1. Introducing the Russian Case What are the outcomes to be explained? Old Russia –defeated in multiple wars Soviet Union –victorious in WW II (Allies) –superpower during Cold War –political collapse during reform process New Russia (Russian Federation) –Market and democratic reforms under Yeltsin “partly free” (Freedom House) economically struggling –Rolling back of market and democratic reforms under Putin Putin—former KGB officer—elected president in 2000 Now “not free” (Freedom House) economically struggling: 2004 GDP < 1989 GDP

2. Socio-economic Development (2004 data) CountryGDP per capita (ppp, US$) HDI Rank United States 39,676 8 Britain 30,821 18 Japan 29,251 7 Russia 9,902 65 Mexico 9,803 53 China 5,896 81 Nigeria 1,154159 Source: Human Development Report, 2006

3. How to explain theoretically? Major debates –statist vs. neo-liberal

4. Origins of Soviet System Lenin, Bolshevik Party Slogan: “Peace, Land, and Bread” Appeals to –Soldiers –Workers –peasants

5. Goals of Soviet System Massive economic transformation –Rapid industrialization for national defense Massive ideological transformation

6. Ideological Transformation: Totalitarianism Charismatic leader –Stalin (Gen Sec 1922-53) Single dominant party –CPSU (Communist Party of Soviet Union) “vanguard party” “democratic centralism” Utopian, forward-looking ideology –Marxism-Leninism State control over all organized activity –“nomenklatura” list of positions—appointment controlled by party Arbitrary terror

7. TotalitarianismAuthoritarianism charismatic leader  more routinized succession single dominant party  single dominant party utopian, forward-looking ideology  economic performance/nationalism state control over all  emergence of non-political private organized activitysphere arbitrary terror  end of arbitrary terror, but no overt challenge to regime allowed mass mobilization  apathy okay

8. Economic Transformation: Planned Economy Contrast market and planned economies Contrast Japan and Soviet Union Key features of planned economy –Planners’ preferences (not consumers’ pref’s)  Heavy industry with defense applications –State ownership (no private) Factories Farms –State-set prices (no free market forces)

9. Planned Economy How did the Soviet economy affect the average citizen? –No consumer choice –No chance to get rich, little socio-economic advancement –But Security Relatively egalitarian Basic needs met  Important to understanding public reaction to “shock therapy”