Revisiting the Soviet Breakup

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Bibliographic details

• Authors: MART LAAR
• Published: March 1, 2023

Overview

• Book reviewed: Towards Market Economies: The IMF and the Economic Transition in Russia and Other Former Soviet Countries, reviewed in F&D Magazine.
• Reviewer: MART LAAR, a former prime minister of Estonia.
• Review date: March 2023.
• Central subject: John Odling-Smee’s account of the transformation of planned economies after the 1991 breakup of the Soviet Union.

Author and perspective

• Reviewer background:
  • MART LAAR is a former prime minister of Estonia.
  • The reviewer notes personal cooperation with the IMF while serving as prime minister of Estonia from 1992 to 1994.
• Book author background as described:
  • The author is a retired economist who from 1992 to 2003 headed the IMF team responsible for the former Soviet republics.

Key observations and findings

• Conditions at the time of the IMF intervention:
  • The IMF team went to the Soviet Union in 1991 to help the country avoid economic collapse; the reviewer calls this effort “mission impossible.”
  • Little was known about the Soviet Union outside the USSR—only falsified statistics and other lies.
  • The author vividly describes the horror of the initial situation and the chaos that followed the disintegration of the Soviet Union.
• Human impact and social conditions:
  • The book details the tragedy of ordinary people: endless queues before state food shops with empty shelves, shivering people selling small items by the roadside.
• Political economy and obstacles:
  • Deep political weakness—above all, corruption and cronyism—prevented the growth of real market economies.
  • Some accused the IMF of destroying the Soviet economy, though the reviewer notes the Soviet economy was on the brink of collapse by the time the Fund was called in.
• Link to later outcomes:
  • The reviewer argues the failure of reforms led to corruption, cronyism, and oligarchy—which led to Putin and war.
  • The book was written before Russia invaded Ukraine in February 2022 and so does not cover that event, but the reviewer states it “describes its roots very well.”

Explanations for Baltic success (as reported)

• Odling-Smee offers several explanations for the success of the Baltic countries.
• Reviewer adds two remarks:
  • They broke away completely from their Communist past.
  • The Soviet economy collapsed as a result of the collapse of the Soviet system, not because of reforms.

Style, scope, and tone

• Narrative features:
  • The book moves smoothly from government offices in the former Communist Party Central Committee building to the dachas of wild young reformers in Arkhangelskoe on the edge of Moscow.
  • Personal anecdotes provide context and color while the author provides a serious recount of economic issues.
  • The reviewer describes the style as calm and reasoned.
• Balance and reflection:
  • The author does not defend the IMF or himself, but suggests what might have been done differently—maybe not by the IMF, but by the countries in transition.

Policy implications and recommendations (implied)

• Speed of reform:
  • Quoting the author (as echoed by the reviewer): “The faster reforms are implemented, the sooner the economy will recover. By delaying difficult reforms, you are just prolonging the agony and pain of people.”
• Political reform:
  • Addressing corruption and cronyism is necessary to enable the growth of real market economies.
• National agency:
  • “Russia lost itself, and only Russia can raise itself up.” (statement on responsibility for recovery)

Source: Revisiting the Soviet Breakup — F&D Magazine, March 2023.

Content in this bundle

• F&D March 2023: Book Review; Revisiting the Soviet Breakup
  • F&D March 2023: Book Review; Revisiting the Soviet Breakup (Markdown version)
  • F&D March 2023: Book Review; Revisiting the Soviet Breakup (PDF)