With the dissolution of the Soviet Union, the economy of Russia was left without the guidance on which it relied so heavily for more than seventy years. Control of the economy was thrust into the inexperienced hands of the general population, who had lived for three generations under a system in which they had no need to make decisions about their businesses. Capitalism is a difficult system to understand, even with training. To be thrust into it unprepared can be a prescription for disaster. Boris Yeltsin assumed the role of president when the Soviet Union officially broke apart on December 26, 1991, one day after Gorbachev's resignation from the leadership of the Communist party and the USSR. This began the process of rebuilding the Russian economy in a capitalist system. (Famighetti, 1996) During a meeting in July 1990, leaders of the Group of Seven industrial nations and the president of the European Community asked the International Monetary Fund (I.M.F.) and other United Nations economic agencies to study the Russian economy and propose a more effective method of reform. The study, titled "A Study of the Soviet Economy" and released in December 1990, made recommendations to both the international community and the Russian government itself. (Brendenkamp) The committee strongly suggested that the Russians immediately release price controls on almost all goods, instantly creating a free market in which the people could learn capitalism first-hand. An auction of all government- owned corporations was proposed, beginning with smaller, easier to value companies. Also, the commission emphasized the need to lift restrictions on foreign trade. (Brendenkamp) Russia's currency, the ruble, was thrown into a state of intense fluctuation by the transition. However, the general trend has been toward massive inflation. In 1989, one United States dollar was worth about 2/3 of a ruble (Hoffman); in 1993, it was close to one thousand (Fam...
