Collapse of the Soviet Union

y On March 15th 1990 Mikhail Gorbachev elected as the 1st Executive y y y y y y

President of the Soviet Union Most of the Republics wanted Independence Boris Yeltsin then the Communist Party chief used Economic discontent to weaken Gorbachev and the Soviet Union Gorbachev was harassed for reforms Boris Yeltsin came into Power Communist Dictatorship to Multiparty Democracy Centrally planned economy was reshaped into capitalist order

Change of Power

Mikhail Gorbachev

Boris Yeltsin

Russia After Communism

y June 1991 Boris Yeltsin Russias 1st elected President y Yeltsin introduced Radical Reforms y Jan 1992- Prices were Liberalized y A mass privatization program implemented during1993-94 ,

transferred shares in most firms from the Govt to their Managers, Workers and Public y By mid 1994 almost 70% of the Russian economy was in Private hands y In 1995 Russia stabilized ruble with the help of IMF

y Presidential elections which were to be held in 1996 y To balance the Budget and as a part of Political campaign Yeltsin agreed

to loans for share program y This highly controversial program accelerated the consolidation of a few large financial groups, led by so-called oligarchs, who enjoyed great political and economic influence. y The oligarchs helped Yeltsin with sympathetic coverage on the television networks and in the newspapers they owned. y Yeltsin won a second Presidential term preventing Communists from regaining power in Russia