privatisation market and trade liberalisation shock therapy Russian oligarchs capital flight birth rate death rate Soviet Union Russian
The economic and political collapse of the Soviet Union led Russia into a deep and prolonged depression. During and after the disintegration of the Soviet Union, wide-ranging reforms including privatisation and market and trade liberalisation were undertaken, including radical changes along the lines of "shock therapy". The privatisation largely shifted control of enterprises from state agencies to individuals with inside connections in the government, which led to the rise of the infamous Russian oligarchs. Many of the newly rich moved billions in cash and assets outside of the country in an enormous capital flight. The depression of the economy led to the collapse of social services—the birth rate plummeted while the death rate skyrocketed, and millions plunged into poverty; while extreme corruption, as well as criminal gangs and organised crime rose significantly.
