Essay on The Rise of the Oligarchs in Post Soviet Russia

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The Russian state has been characterized by its strong heritage of powerful, autocratic leadership. This domination by small ruling elite has been seen throughout Russia's history and has transferred into its economic history. Throughout the Russian czarist period, to the legacy of seventy years of communism; Russia has been a country marked by strong central state planning, a strict command economy and an overall weak market infrastructure (Goldman, 2003). Self-interest, manipulation and corruption have all been present in the Russian economy, and have greatly helped the few as opposed to the many. To this day, Russia still struggles with creating a competitive and fair market.
Throughout the czarist period to the seventy years of
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Chubais was the most integral person in pushing the Russian privatization movement and constructing the semblance of a market which Russia soon had. However, this hodgepodge market was far from stable and tainted with corruption and confusion. Chubais did succeed in his most important goal, ensuring that the Communist Party did not regain power in Russia. Although he was successful with his political goal of ensuring that the Communist Party did not have a rebirth in Russia, a mixture of lackluster and hollow economic reform along with the reelection of Yeltsin in 1996 paved the way for the emergence of the Russian oligarchs.
The oligarchs came to be known as the concentrated centralized economic class of corrupt men who took advantage of Yeltsins privatization movement. These economic elite ascended to power during Yeltsin's terms. Yeltsin's economic plans lead to corruption, economic stagnation and increased power of the oligarchs. The oligarchs were adroit at finding loopholes and ways around any attempt Yeltsin had at privatization. They did not follow any market rules because there were really none in place in the infant Russian market. The oligarchs took money out of Russia by setting up offshore accounts from their enterprises; defeating the purpose of the economic reforms by not investing money back into the
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