Final answer:
Boris Yeltsin's economic reforms, known as shock therapy, rapidly transitioned Russia to a capitalist market economy with extensive privatization. The effects included a rise in capitalist entrepreneurs, but also economic hardship, social turmoil, and increased inequality. Vladimir Putin later centralized power and stabilized the economy.
Step-by-step explanation:
During the post-Soviet transition, Boris Yeltsin, as the president of the new Russian Federation, introduced drastic economic reforms, often referred to as shock therapy. This economic shock therapy aimed to rapidly convert the state-controlled economy into a capitalist market economy. The policies involved massive privatization of state-owned enterprises and the liberalization of prices.
The effects of these policies were dramatic and often controversial. While shock therapy created a new class of capitalist entrepreneurs, it also led to widespread economic hardship for the majority of the population. A sharp increase in inequality, the emergence of oligarchs, and dramatic declines in living standards were among the most significant impacts. Additionally, the rapid changes led to social turmoil and a decrease in the standard of living for many Russians. Some argue that these policies laid the groundwork for economic stabilization and eventual growth, whereas critics suggest they contributed to the long-term problems in the Russian economy.
After Yeltsin's tenure, the Russian economy began to strengthen under Vladimir Putin, who took steps to centralize power and rein in the influence of the oligarchs. However, these policies also coincided with the unraveling of certain aspects of the social safety net that had existed during the Soviet era.