1. Soviet Union had experienced very high economic growth rate since the revolution, but the growth rate had decelerated gradually because of economic inefficiency of communist economic system. There had been several attempts to reform the economic sy...
1. Soviet Union had experienced very high economic growth rate since the revolution, but the growth rate had decelerated gradually because of economic inefficiency of communist economic system. There had been several attempts to reform the economic system such as the Liberman's. But all of them had failed and in 1980's the Soviet Union s economy stagnated.
2. In 1985 Gorbachev became the SU communist party leader. He began Perestroika (restructuring) to reform SU more thoroughly. But it failed also finally and he resigned the SU president after the failed coup against him And the SU disintegrated and the republics became independent.
3. In 1991 Yeltsin was elected to be Russian President. He was a more radical reformer than Gorbachev. He selected the shock therapy rather than gradualism. But Russian people have experienced big disorders and very high inflation, minus economic growth in the transformation era. Russian experience is a very important example of economic transformation.