## Revisiting the Soviet Breakup

## Source details

**Canonical URL:** [Revisiting the Soviet Breakup](https://www.imf.org/en/publications/fandd/issues/2023/03/book-review-revisiting-the-soviet-breakup-mart-laar)

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## Bibliographic details
- Authors: MART LAAR
- Published: March 1, 2023

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### 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.*

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## 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)](/-/media/files/publications/fandd/article/2023/march/book-review-martlaar.pdf.md){rel="alternate" type="text/markdown"}
  - [F&D March 2023: Book Review; Revisiting the Soviet Breakup (PDF)](/-/media/files/publications/fandd/article/2023/march/book-review-martlaar.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/fandd/issues/2023/03/book-review-revisiting-the-soviet-breakup-mart-laar_