Few observers understood just how little legitimacy the USSR system possessed. It was eaten away on the inside by the rot of corruption. It disintegrated along the ethnic boundaries of its 15 republics.
It was ultimately elite defection that brought it down — that, and its lack of overall legitimacy. Gorbachev’s economic reforms ruined the ruble and left the centre without funds. His political-constitutional reforms triggered mutinies across the Soviet Union
Putin has learned a lot of lessons. First and foremost, Russia’s macroeconomic policy is much more conservative, inflation is under control, there are large reserves, a balanced budget and no external debt. Second, with all the domination of the state and ad hoc price regulations, Russia is still a market economy and is much more efficient and resilient than the Soviet one.
Economics and Finance SA 