Final answer:
Russia in the 1990s faced economic challenges similar to those of third world countries, including outdated infrastructure, dependence on natural resource exports, and corruption, which hindered foreign investment and diversified growth.
Step-by-step explanation:
The comparison of Russia of the 1990s to a third world country is based on several economic and structural challenges that the country faced during and after the transition from communism to a market economy. Despite the economic growth observed during Vladimir Putin's presidency and the emergence of Moscow as a wealthy city, Russia's overall economic infrastructure remained outdated. Moreover, the economy heavily relied on the export of natural resources such as oil and gas, which, while beneficial in times of high energy prices, poses a risk due to market volatility. This over-reliance on natural resource exports, coupled with a crumbling infrastructure and rampant corruption, hampered Russia's ability to attract foreign investment and diversify its economy.
Russia's challenges in accumulating capital for development echo those of other low-income countries, where foreign aid and external investment are insufficient for substantial improvements. In Russia's case, the situation was exacerbated by lawlessness and extensive government regulation leading to widespread corruption, which impeded economic growth and entrepreneurial effort.
Additionally, Russia's large size and geographic challenges made the industrialization process complex and demanding, requiring significant infrastructure investments that were difficult to execute.