Introduction
The following text will examine the Soviet Union's transition from a communistic system over to a capitalistic state. It is our purpose to observe the underlying economic factors during the later years of the former Soviet Union and throughout the transition to capitalism to the present economic state of the Russian Federation. Do to the broadness of the phenomenon being investigated; the text will concentrate, in particular, on the Gorbachev era in the 80s' and how that period of time of political instability had an essential impact on the breaking of the Soviet Union. Further investigation will clarify the economic aspects involved in the transition, such as, governmental policies and the reasons behind a fatigued economy. The latter segment of the paper analyses the impact after the transition on the economy and the nation to the present day.
The breaking years
Introduction
The collapse of the Soviet Union has many underlying factors but the main issues can be categorized into the following: capital budget deficits, a burdened economy, military conflicts, an arms race against the U.S. and the worsening market situation. The latter will be further discussed in the subsequent sections.
Soviet ideology and economic analysis
At the time, USSR had the ideology of uniting all socialist countries with the goal of building up both socialism and being able to match and even surpass imperialist and capitalist powers for the supremacy in arms. Several analysts recognized this prevailing dilemma to which some predicted as the breaking of the Soviet Union. The Dumas analysis is an applicable approach to recognize the economic difficulties the Soviet Union encountered. Dumas argues that military production creates weakens t ...