History of Russia

Ancient Russia (800-1200)

The early history of Russia, like those of many countries, is one of migrating peoples and ancient kingdoms. In fact, early Russia was not exactly "Russia," but a collection of cities that gradually coalesced into an empire. I n the early part of the ninth century, as part of the same great movement that brough the Danes to England and the Norsemen to Western Europe, a Scandanavian people known as the Varangians crossed the Baltic Sea and landed in Eastern Europe. The leader of the Varangians was the semilegendary warrior Rurik, who led his people in 862 to the city of Novgorod on the Volkhov River. Whether Rurik took the city by force or was invited to rule there, he certainly invested the city. From Novgorod, Rurik's successor Oleg extended the power of the city southward. In 882, he gained control of Kiev, a Slavic city that had arisen along the Dnepr River around the 5th century. Oleg's attainment of rule over Kiev marked the first establishment of a unified, dynastic state in the region. Kiev became the center of a trade route between Scandinavia and Constantinople, and Kievan Rus', as the empire came to be known, flourished for the next three hundred years.

By 989, Oleg's great-grandson Vladimir I was ruler of a kingdom that extended to as far south as the Black Sea, the Caucasus Mountains, and the lower reaches of the Volga River. Having decided to establish a state religion, Vladimir carefully considered a number of available faiths and decided upon Greek Orthodoxy, thus allying himself with Constantinople and the West. It is said that Vladimir decided against Islam partly because of his belief that his people could not live under a religion that prohibits hard liquor. Vladimir was succeeded by Yaroslav the Wise, whose reign marked the apogee of Kievan Rus'. Yaroslav codified laws, made shrewd alliances with other states, and encouraged the arts. Unfortunately, he decided in the end to act like Lear, dividing his kingdom among his children and bidding them to cooperate and flourish. Of course, they did nothing of the sort.

Within a few decades of Yaroslav's death (in 1054), Kievan Rus' had broken up into regional power centers. Internal divisions were made worse by the depradations of the invading Cumans (better known as the Kipchaks). It was during this time (in 1147 to be exact) that Yuri Dolgorukiy, one of the regional princes, held a feast at his hunting lodge atop a hill overlooking the confluence of the Moskva and Neglina Rivers. A chronicler recorded the party, thus providing us with the earliest mention of Moscow, the small settlement that would soon become the pre-eminent city in Russia.

The Mongols and the Emergence of Moscow (1237-1613)

Kievan Rus' struggled on into the 13th century, but was decisively destroyed by the arrival of a new invader--the Mongols. In 1237 Batu Khan, a grandson of Jenghiz Khan, launched an invasion into Kievan Rus' from his capital on the lower Volga (at present-day Kazan). Over the next three years the Mongols (or Tatars) destroyed all of the major cities of Kievan Rus' with the exceptions of Novgorod and Pskov. The regional princes were not deposed, but they were forced to send regular tribute to the Tatar state, which became known as the Empire of the Golden Horde. Invasions of Russia were attempted during this period from the west as well, first by the Swedes (1240) and then by the Livonian Brothers of the Sword (1242), a regional branch of the fearsome Teutonic Knights. In the best news of the era for Russia, both were decisively defeated by the great warrior Alexander Nevsky, a prince of Novgorod who earned his surname from his victory over the Swedes on the Neva River.

For the next century or so, very little seems to have happened in Russia, which other than the exorbitant tax requirement was relatively left alone by the Mongols. With the Tatars off to the southwest, the northeastern cities gradually gained more influence--first Tver, and then, around the turn of the 14th century, Moscow. As a sign of the city's importance, the patriarchate of the Russian Orthodox Church was transferred to the city, making it the spiritual capital of Russia. By the latter part of the century, Moscow felt strong enough to challenge the Tatars directly, and in 1380 a Muscovite prince named Dmitri Donskoy had the audacity to attack them. His decisive victory at Kulikovo Field immediately made him a popular hero, though the Tatar retaliation two years later maintained their rule over the city. It wasn't until 1480, after another century had passed, that Moscow was strong enough to throw off Tatar rule for good. Its ruler at that time was Grand Duke Ivan III, better known as Ivan the Great. Ivan began by subjugating most of Moscow's rival cities, and by the time he tore up the charter binding it to Tatar tribute he was effectively in control of the entire country. However, it wasn't until the reign of his grandson, Ivan IV (the Terrible), that Russia became a unified state.

Ivan the Terrible succeeded his father Vasily III as Grand Duke of Moscow in 1533 at the age of three. His mother served as regent until she too died, when Ivan was eight. For the next eight years, the young Grand Duke endured a series of regents chosen from among the boyars (the nobility). Finally in 1547, he adopted the title of tsar and set about crushing the power of the boyars, reorganizing the military, and preparing to smite the Tatars. In 1552 he conquered and sacked Kazan (the famous St. Basil’s Cathedral was built in commemoration of this victory), and in 1556 Astrakhan, having thus destroyed the lingering power of the Golden Horde. Ivan's Tatar campaigns opened vast new areas for Russian expansion, and it was during his reign that the conquest and colonization of Siberia began.

Believe it or not, Ivan was not supposed to have been very terrible at all during the early years of his reign. However, as he grew older his temper worsened, and by the 1560s he carried out a pretty horrific campaign against the boyars, confiscating their land and executing or exiling those who displeased him. In 1581, in a rage, he struck his son and heir Ivan with an iron rod, killing him.

When Ivan the Terrible died in 1584, he was succeeded by his son Fyodor, who left most of the management of the kingdom to his brother-in-law, Boris Godunov, and it was not long before Godunov began to work to secure the succession for himself. In 1591, he murdered Fyodor's younger brother Dmitri in the ancient town of Uglich, a spot now marked by the magnificent Church of St. Demetrius on the Blood. When Fyodor died in 1598, Godunov was made tsar, but his rule was never accepted as entirely legitimate. Within a few years a pretender arose in Poland, claiming to be Dmitri, and in 1604 he invaded Russia. Godunov died suddenly the next year, and the "Time of Troubles" began. For the next eight years both the first and a second false Dmitri laid claims to the throne, both supported by invading Polish armies. Finally, in 1613, the Poles were ousted from Moscow, and the boyars unanimously elected Michael Romanov as Tsar. The Romanov dynasty was to rule Russia for the next 304 years, until the Russian Revolution brought an end to the Tsarist state.

The Romanovs (1613-1825)

For the first few generations, the Romanovs were happy to maintain the status quo in Russia. They continued to centralize power, but they did very little to bring Russia up to speed with the rapid changes in economic and political life that were taking place elsewhere in Europe. Peter the Great decided to change all of that.

Peter the Great

Peter was his father's youngest son and the child of his second wife. When his father, Tsar Alexis, died in 1676 Peter’s brother Feodor became Tsar, but his poor health brought an early death in 1682. The family of Peter's mother succeeded in having him chosen over his mentally retarded brother Ivan to be Tsar, but no sooner was he established than the Ivan's family struck back. Gaining the support of the Kremlin Guard, they launched a coup d'etat, which resulted in a joint Tsar-ship, with both Peter and Ivan placed under the regency of Ivan's elder sister Sophia.

In 1689, just as Peter was to come of age, Sophia attempted another coup--this time, however, she was defeated and confined to Novodevichiy Convent. Six years later Ivan died, leaving Peter in sole possession of the throne. Rather than taking up residence and rule in Moscow, his response was to embark on a Grand Tour of Europe. He spent about two years there, not only meeting monarchs and conducting diplomacy but also travelling incognito and even working as a ship's carpenter in Holland. He amassed a considerable body of knowledge on western European industrial techniques and state administration, and became determined to modernize the Russian state and to westernize its society. In 1698, still on tour, Peter received news of yet another rebellion by the Kremlin Guard, instigated by Sophia despite her confinement to Novodevichiy. He returned, defeated the coup attempt and hung all of the rebels. The following day he began his program to recreate Russia in the image of Western Europe by personally clipping off the beards of his nobles.

Peter's return to Russia hit the country like a hurricane. He banned traditional Muscovite dress for all men, introduced military conscription, established technical schools, replaced the church patriarchy with a holy synod answerable to himself, simplified the alphabet, tried to improve the manners of the court, changed the calendar, changed his title from Tsar to Emperor, and introduced a hundred other reforms, restrictions, and novelties. In 1703 he transferred the capital from Moscow to a new city to be built from scratch on the Gulf of Finland. Over the next nine years, at tremendous human and material cost, St. Petersburg was created.

Peter himself died in 1725, and he remains one of the most controversial figures in Russian history. Although he was deeply committed to making Russia a powerful new member of modern Europe, it is questionable whether his reforms resulted in significant improvements to the lives of his subjects. Certainly he modernized Russia's military and its administrative structure, but both of these reforms were financed at the expense of the peasantry, who were increasingly forced into serfdom. After Peter's death Russia went through a great number of rulers in a distressingly short time, none of whom had much of an opportunity to leave a lasting impression. Many of Peter's reforms failed to take root in Russia, and it was not until the reign of Catherine the Great that his desire to make Russia into a great European power was in fact achieved.

Catherine the Great

The future Catherine the Great was born a German princess in one of the tiny German states, but turned out to be a powerful and enlightened ruler of the vast Russian Empire. In 1745 she was married to prince Carl Peter Ulrich, the heir to the Russian throne (the future Emperor Peter III). Being a bright personality with a strong sense of determination she joined the Russian Orthodox Church, learned the Russian language and by doing a lot of reading acquired a brilliant education. In June 1762 she took an active part in a coup against her husband Emperor Peter III. He was overthrown and soon killed "in an accident", while Catherine became Russia's ruler.

Catherine went on to become the most powerful sovereign in Europe. She continued Peter the Great's reforms of the Russian state, further increasing central control over the provinces. Russia's influence in European affairs, as well as its territory in Eastern and Central Europe, were increased and expanded. Catherine was also an enthusiastic patron of the arts. She built and founded the Hermitage Museum, commissioned buildings all over Russia, founded academies, journals, and libraries, and corresponded with the French Encyclopedists, including Voltaire, Diderot, and d'Alembert. Although Catherine did in fact have many lovers, some of them trusted advisors and confidants, stories alleging her to have had an excessive sexual appetite are unfounded.

With the onset of the French Revolution, Catherine became strikingly conservative and increasingly hostile to criticism of her policies. From 1789 until her death, she reversed many of the liberal reforms of her early reign. One notable effect of this reversal was that, like Peter the Great, Catherine ultimately contributed to the increasingly distressing state of the peasantry in Russia.

When Catherine the Great died in 1796, she was succeeded by her son Paul I. Paul's reign lasted only five years and was by all accounts a complete disaster. Paul was succeeded by his son Alexander I, who is remembered mostly for having been the ruler of Russia during Napoleon Bonaparte's epic Russian Campaign.

Napolean’s Invasion

In June of 1812, Napoleon began his fatal Russian campaign, a landmark in the history of the destructive potential of warfare. Virtually all of continental Europe was under his control, and the invasion of Russia was an attempt to force Tsar Alexander I to submit once again to the terms of a treaty that Napoleon had imposed upon him four years earlier. Having gathered nearly half a million soldiers, from France as well as all of the vassal states of Europe, Napoleon entered Russia at the head of the largest army ever seen. The Russians, under Marshal Kutuzov, could not realistically hope to defeat him in a direct confrontation. Instead, they began a defensive campaign of strategic retreat, devastating the land as they fell back and harassing the flanks of the French. As the summer wore on, Napoleon's massive supply lines were stretched ever thinner, and his force began to decline. By September, without having engaged in a single pitched battle, the French Army had been reduced by more than two thirds from fatigue, hunger, desertion, and raids by Russian forces.

Nonetheless, it was clear that unless the Russians engaged the French Army in a major battle, Moscow would be Napoleon's in a matter of weeks. The Tsar insisted upon an engagement, and on September 7, with winter closing in and the French army only 70 miles (110 km) from the city, the two armies met at Borodino Field. By the end of the day, 108,000 men had died--but neither side had gained a decisive victory. Kutuzov realized that any further defense of the city would be senseless, and he withdrew his forces, prompting the citizens of Moscow to begin a massive and panicked exodus. When Napoleon's army arrived on September 14, they found a city depopulated and bereft of supplies, a meager comfort in the face of the oncoming winter. To make matters much, much worse, fires broke out in the city that night, and by the next day the French were lacking shelter as well.

After waiting in vain for Alexander to offer to negotiate, Napoleon ordered his troops to begin the march home. Because the route south was blocked by Kutuzov's forces (and the French were in no shape for a battle) the retreat retraced the long, devastated route of the invasion. Having waited until mid-October to depart, the exhausted French army soon found itself in the midst of winter--in fact, in the midst of an unusually early and especially cold winter. Temperatures soon dropped well below freezing, Cossacks attacked stragglers and isolated units, food was almost non-existent, and the march was five hundred miles. Ten thousand men survived. The campaign ensured Napoleon's downfall and Russia's status as a leading power in post-Napoleonic Europe. Yet even as Russia emerged more powerful than ever from the Napoleonic era, its internal tensions began to increase.

The Path to Revolution (1825-1920)

Since the reign of Ivan the Terrible, the Russian Tsars had followed a fairly consistent policy of drawing more political power away from the nobility and into their own hands. This centralization of authority in the Russian state had usually been accomplished in one of two ways--either by simply taking power from the nobles and braving their opposition (Ivan the Terrible was very good at this), or by compensating the nobles for decreased power in government by giving them greater power over their land and its occupants. Serfdom, as this latter system was known, had increased steadily in Russia from the time of Ivan the Terrible, its inventor. By the time of Catherine the Great, the Russian Tsars enjoyed virtually autocratic rule over their nobles. However, they had in a sense purchased this power by granting those nobles virtually autocratic power over the serfs, who by this time had been reduced to a state closer to slavery than to peasantry.

By the nineteenth century, both of these relationships were under attack. In the Decembrist revolt in 1825, a group of young, reformist military officers attempted to force the adoption of a constitutional monarchy in Russia by preventing the accession of Nicholas I. They failed utterly, and Nicholas became the most reactionary leader in Europe. Nicholas' successor, Alexander II, seemed by contrast to be amenable to reform. In 1861, he abolished serfdom, though the emancipation didn't in fact bring on any significant change in the condition of the peasants. As the country became more industrialized, its political system experienced even greater strain. Attempts by the lower classes to gain more freedom provoked fears of anarchy, and the government remained extremely conservative. As Russia became more industrialized, larger, and far more complicated, the inadequacies of autocratic Tsarist rule became increasingly apparent. By the twentieth century conditions were ripe for a serious convulsion.

At the same time, Russia had expanded its territory and its power considerably over the nineteenth century. Its borders extended to Afghanistan and China, and it had acquired extensive territory on the Pacific coast. The foundation of the port cities of Vladivostok and Port Arthur there had opened up profitable avenues for commerce, and the construction of the Trans-Siberian Railway (constructed from 1891-1905) linked the European Russia with its new eastern territories.

In 1894 Nicholas II acceded to the throne. He was not the most competent of political leaders, and his ministers were almost uniformly reactionaries. To make matters worse, the increasing Russian presence in the far east provoked the hostility of Japan. In January of 1905, the Japanese attacked, and Russia experienced a series of defeats that dissolved the tenuous support held by Nicholas' already unpopular government. Nicholas was forced to grant concessions to the reformers, including most notably a constitution and a parliament, or Duma. The power of the reform movement was founded on a new and powerful force that entered Russian politics. The industrialization of the major western cities and the development of the Batu oil fields had brought together large concentrations of Russian workers, and they soon began to organize into local political councils, or soviets (“soviet” means council or advice). It was in large part the power of the soviets, united under the Social Democratic party, that had forced Nicholas to accept reforms in 1905.

After the war with Japan was brought to a close, Nicholas attempted to reverse the new freedoms, and his government became more reactionary than ever. Popular discontent gained strength, and Nicholas countered it with increased repression. In 1912, the Social Democrats split into two camps--the radical Bolsheviks (“bolshe” means bigger) and the comparatively moderate Menshiviks (“menshe” means smaller). In 1914, another disastrous war once again brought on a crisis. If the Russo-Japanese war had been costly and unpopular, it was at least remote. The First World War, however, took place right on Russia's western doorstep. Unprepared militarily or industrially, the country suffered demoralizing defeats, suffered severe food shortages, and soon suffered an economic collapse. By February of 1917, the workers and soldiers had had enough. Riots broke out in St. Petersburg, then called Petrograd, and the garrison there mutinied. Workers’ soviets were set up, and the Duma approved the establishment of a Provisional Government to attempt to restore order in the capital. It was soon clear that Nicholas possessed no support, and on March 2 he abdicated the throne in favor of his brother Michael. No fool, Michael renounced his claim the next day.

The Provisional Government set up by the Duma attempted to pursue a moderate policy, calling for a return to order and promising reform of worker's rights. However, it was unwilling to endorse the most pressing demand of the soviets--an immediate end to the war. For the next 9 months, the Provisional Government, first under Prince Lvov and then under Alexandr Kerensky, unsuccessfully attempted to establish its authority. In the meanwhile, the Bolsheviks gained increasing support from the ever more frustrated soviets. On October 25, led by Vladimir Ilyich Lenin, they stormed the Winter Palace and deposed the Kerensky government.

Although the Bolsheviks enjoyed substantial support in St. Petersburg and Moscow, they were by no means in control of the country as a whole. They succeeded in taking Russia out of the war (though on very unfavorable terms), but within months civil war broke out throughout Russia. For the next three years the country was devastated by civil strife, until by 1920 the Bolsheviks had finally emerged victorious.

The Soviet Era

The first few years of Soviet rule were marked by an extraordinary outburst of social and cultural change. Although the Bolsheviks had maintained complete control of the economy during the civil war, Lenin decided at its end that a partial return to a market economy would help the country recover from the destruction of the previous three years. His New Economic Policy, or NEP, brought about a period of relative prosperity, allowing the young Soviet government to consolidate its political position and rebuild the country's infrastructure. This was also the period during which the Russian Avant-Garde reached its height, developing the radical new styles of Constructivism, Futurism, and Suprematism. Although the country still faced enormous challenges, there was a widespread sense of optimism and opportunity.

Lenin's death in 1924 was followed by an extended and extremely divisive struggle for power in the Communist Party. By the latter part of the decade, Joseph Stalin had emerged as the victor, and he immediately set the country on a much different course. The NEP was scrapped, to be replaced by an economic plan dictated from the top. Agricultural lands were collectivized, creating large, state-run farms. Industrial development was pushed along at breakneck speed, and production was almost entirely diverted from consumer products to capital equipment. Art and literature were placed under much tighter control, and the radical energy of the Russian Avant-Garde was replaced by the solemn grandeur of Soviet realism. Religion was violently repressed, as churches were closed, destroyed, or converted to other uses. Stalin purged all opposition to himself within the party as well as all opposition to party policy in the country. By the end of the 1930s, the Soviet Union had become a country in which life was more strictly regulated than ever before. Experimentation had ended, and discipline was the rule of the day.

With the outbreak of the Second World War, the Soviet Union found itself unprepared for the conflict. Political purges had stripped the military of much of its experienced leadership, and industrial production was slow in converting from civil to military production. Although its non-aggression pact with Germany (1939) served for a while to forestall an attack by Hitler, the Soviets were caught by surprise by the invasion of June 1941. By the end of the year, the Germans had seized most of the Soviet territory in the west, surrounded St. Petersburg (having been renamed once again as Leningrad), and advanced to within a few hundred miles of Moscow. With tremendous effort, a Russian counter-offensive pushed back the advance on the capital, but in the summer of 1942 the Germans launched a new invasion against the southern front in an attempt to gain control of the rail center of Stalingrad on the Volga and the vital Caucasus oil fields. Despite an overwhelming disadvantage in numbers and inferior weaponry, the Russian army succeeded in holding out against the enormous German army. In November, a relieving force managed to encircle the attackers and compel the surrender of the entire force, marking a decisive turning point in the war. From that point onward, the Russian army remained on the attack. By 1944 they had driven the Germans back to Poland, and on May 2, 1945, Berlin fell.

As was the case with the Napoleonic Wars, the Soviet Union emerged from World War II considerably stronger than it had been before the war. Although the country suffered enormous devastation and lost more than twenty million lives, it had gained considerable territory and now ranked as one of the two great world powers along with the United States. Nonetheless, life in the country continued to suffer. Industrial production was once again concentrated on heavy industry, agricultural failures produced widespread famine, political freedoms were restricted even further, and another huge wave of purges was carried out. As the Cold War got underway, an increasing proportion of the Soviet Union's resources were funneled into military projects, further exacerbating the quality of life. Stalin remained in power until 1953, when he died of a cerebral hemorrhage.

Almost immediately after the death of Stalin, many of the repressive policies that he had instituted were dismantled. Under the leadership of Nikita Khruschev, political controls were to some degree relaxed, and cultural life experienced a brief period of revival. However, opposition to Khruschev gradually gained strength within the party, and in 1964 he was ousted. In a notable break with historical traditions, Khruschev was permitted to quietly retire. By the 1970s, Leonid Brezhnev, as general secretary of the Communist party of the Soviet Union (CPSU), had become the next prominent Soviet leader. His tenure was marked by a determined emphasis on domestic stability and an aggressive foreign policy. The country entered a decade-long period of stagnation, its rigid economy slowly deteriorating and its political climate becoming increasingly pessimistic. When Breshnev died in 1982 he was succeeded as general secretary first by Yuri Andropov, head of the KGB, and then by Konstantin Chernenko, neither of whom managed to survive long enough to effect significant changes. In March of 1985, when Mikhail Gorbachev became general secretary, the need for reforms was pressing.

Gorbachev's platform for a new Soviet Union was founded on two now-famous terms--glasnost (openness) and perestroika (restructuring). Like Khruschev, Gorbachev intended to revitalize the Soviet economy by loosening up a bit on social control, opening some room for new ideas, relaxing control of the economy, and generally allowing for a little fresh air. Restructuring began in earnest, with a vigorous housecleaning of the bureaucracy and a significant investigation into corruption. Glasnost, however, lost some credibility right at the outset when it was discovered in April 1986 that the government had waited several days before admitting to the infamous nuclear disaster at Chernobyl--a reactor explosion that had thrown radioactive material over a wide area of the country. Backed into a corner on Chernobyl, Gorbachev countered with the dramatic removal of all controls on reporting--and at that point the fresh air really began to howl.

For the first time in decades, the problems of the country became subjects for open public discussion. Poverty, corruption, the enormous mismanagement of the country's resources, the unpopularity of the Afghan war, and a host of other problems and grievances were raised. Radical reform leaders emerged, including the new Moscow Party chief Boris Yeltsin, and prominent dissidents like Andrei Sakharov were able to voice their views for the first time. For some peculiar reason, the government found that it was the target of most of the criticism, but it also found that it wasn't any longer in much a position to do anything but try to move with the flow of events. Early in 1989, Soviet troops were withdrawn from Afghanistan. In the spring of 1989, the first open elections since 1917 were held, allowing voters a novel choice of more than one candidate for seats in the Congress of People's Deputies. The governments of the Soviet satellite states in Eastern Europe, subjected to the same rising tide of public criticism, fell one after the other in a rapid series of revolutions culminating in the fall of the Berlin wall.

In 1990, the Soviet Union itself began to unravel. Its own constituent republics began to issue declarations of independence. In the Russian Republic, Yeltsin was elected chairman of the Parliament, taking a lead in the independence movement. Large scale strikes shattered the Communist Party's traditional claim to be the representative of workers' rights. Demonstrations against the government and the party intensified. The economy worsened, food shortages became a problem, and the crime rate began to skyrocket. Gorbachev, caught between popular demands for more radical reform and party demands for the re-imposition of strict control, failed to satisfy either side.

The following summer, the radical reform movements became strong enough to openly defy the government. In the press, criticism of Gorbachev intensified. Yeltsin, on the other hand, was the overwhelming victor in June elections for the Russian presidency. On August 18, party conservatives made a desparate bid for power. A group led by Defense Minister Dmitry Yazov and Vice President Gennady Yanayev detained Gorbachev at his country retreat in the Crimea. After he refused to support the imposition of military law, the head of state was placed under house arrest. The next morning the coup leaders issued the announcement that Gorbachev had resigned and that a state of emergency had been declared. Military units were dispatched to enforce the authority of the new government, but they were met with overwhelming popular protest led by Yeltsin and the other presidents of the republics. After three days the attempted coup had collapsed. Gorbachev was reinstated, only to realize that his position had become completely obsolete. By the end of the year the Soviet Union had been voted out of existence, to be replaced by a Commonwealth of Independent States (CIS). On December 25, Gorbachev resigned, and on midnight of December 31, the Soviet flag atop the Kremlin was replaced by the Russian tricolour.

Post-Communism to the Present

**Apology: the breaking off of Latvia, Estonia, Lithuania, countries of central Asia, and the current situation in Chechnya are not discussed here.

While personal liberties took a turn for the better following the fall of communism, life in the former Soviet Union failed to improve for the vase majority of its people. Both politics and economics were radically changed in Russia and the former Soviet Union , unfortunately resulting in massive inflation and economic collapse in the early 1990s and again in 1998, severe unemployment, and the loss or reduction of many established social services, including health care. Several fundamental problems faced the Soviet Union in its attempt to convert from communism to capitalism.

The first major problem facing Russia was the legacy of the Soviet Union 's enormous commitment to the Cold War. In the late 1980s, the Soviet Union devoted a quarter of its gross economic output to the defense sector (at the time most Western analysts believed that this figure was 15 percent). At the time, the military-industrial complex employed at least one of every five adults in the Soviet Union . In some regions of Russia , at least half of the workforce was employed in defense plants. (The comparable U.S. figures were roughly one-sixteenth of gross national product and about one of every sixteen in the workforce.) The end of the Cold War and the cutback in military spending hit such plants very hard, and it was often impossible for them to quickly retool equipment, retrain workers, and find new markets to adjust to the new post-Cold War and post-Soviet era. In the process of conversion an enormous body of experience, qualified specialists and know-how has been lost, as the plants were sometimes switching from producing hi-tech military equipment to making kitchen utensils.

A second obstacle had to do with the distribution of workers and resources. Roughly half of Russia 's cities had only one large industrial enterprise (ie: glass manufacturing), and three fourths had no more than four. Consequently, the decrease in production caused tremendous unemployment and underemployment. When the Soviet Union collapsed and the economic ties were severed, the production in the whole country dropped by more than 50%.

Thirdly, post-Soviet Russia did not inherit a functioning system of social security and welfare from the USSR . Since Russian industrial firms were traditionally responsible for a broad range of social welfare functions—building and maintaining housing for their workforces, and managing health, recreational, educational, and similar facilities— the towns possessing few industrial employers were left heavily dependent on these firms, which were the mainstay of employment, for the provision of basic social services. Thus, economic transformation created severe problems in maintaining social welfare since local governments were unable to assume financial responsibility for these functions.

Finally, there was the problem of human capital. The problem was not that the Soviet population was uneducated. Literacy was nearly universal, and the educational attainment level of the Soviet population was among the highest in the world with respect to science, engineering, and technical specialties. However, the average Soviet worker was not well prepared to work within a market economy. The system struggled (and still struggles) with concepts such as cost-effectiveness, efficiency, creativity and improvements. During communism, the need to create employment led to huge inefficiencies and redundancies in the workforce (a favorite example: you go to the store. You first walk up to the meat counter, tell one person what you want. They give you a ticket with the price. When you’ve ordered everything, you go to the cashier. They ring you up. You pay. They give you a receipt. You take the receipt back to the meat counter. One person takes the receipt, another puts your meat into a bag for you. This process is repeated for other food types that you want to buy, and for packaged things like coffee there are people just standing behind the counter waiting to hand you your items… and this is after the end of communism!). After so many years of working under a system that rewarded obedience over creativity and did not tolerate questions or suggestions for improvement, most workers needed to radically shift their mindset to encompass a competitive market economy. Understandably, the adjustment has been quite difficult, and is still in process.

Economic depression and social decay

Russia 's economy sank into deep depression by the mid-1990s, was hit further by a financial crash of 1998, and then began to recover in 1999-2000. Russia's economic decline is far more severe and more protracted than was the Great Depression that nearly paralyzed world capitalism following 1929 and about half as severe as the catastrophic drop borne out of the consequence of the First World War, the fall of Tsarism, and the Russian Civil War. While in the 1980s Russia had suffered from supply shortages, throughout the 1990s as imported goods flooded into the country, Russians could no longer afford most goods. Stores that had previously stood empty were now stocked with all sorts of goods that no one could afford to buy.

The most striking consequence of the economic reform has been the sharp increase in the rates of poverty and inequality, which have grown sharply since the end of the Soviet era. Careful estimates by the World Bank based on both macroeconomic data and surveys of household incomes and expenditures indicate that whereas 1.5 percent of the population was living in poverty (defined as income below the equivalent of $25 per month) in 1988, by mid- 1993 between 39 percent and 49 percent of the population was living in poverty. Average per capita monthly income had fallen, in dollar terms, from $72 to $32. As of 2004 the average income has risen to more than $100 per month, but this wealth is distributed primarily in Moscow ; the disparity in income within Russia is now one of the largest in the world.

Russia's turbulent and powerful past is evidenced in the rich and complicated culture that still maintains concepts from imperialism, communism and now capitalism. The great paradox of Russia's impressive gains during the early years of the USSR and it's current condition make it a challenging and sometimes frustration culture to understand. However, since the late 1990s, the economic condition has stabilized and the Russian population has begun to work toward building a new culture that again attempts to define what it is to be Russian.

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