The end of the Second World War saw the division of the world into the western and eastern blocs, and the beginnings of the Cold War, which did not end until the collapse of communist rule in Europe (i.e. the disintegration of the Soviet Union) in 1991. These events excluded almost half of humankind from the latest social and economic developments in the West, with the result that the changes of all kinds (political, economic, cultural) that have occurred since the collapse of the former Soviet bloc have happened at what might be described as breakneck speed.
The countries (the former Soviet Republics) which made up the Soviet Union found themselves facing huge challenges, the most difficult of which was the twofold challenge of their economies. On the one hand they had to develop national economies, based on the workings of the free market, abandoning the central planning which had hitherto been at the heart of their economic activity, and on the other hand they suddenly found themselves in a different economic reality (globalization of markets), with which it was much easier for the western economies to cope. Adaptation of these countries to the new conditions presented all sorts of problems and had a significant impact on their social structures, while in many cases these countries are still struggling to adjust (transition economies). The changes in economic planning led to large-scale privatization, since most sectors of the economy in these countries had been under state control and were obliged to move rapidly into private ownership.
This paper presents a study of the economy of Russia (Russian Federation) in the aftermath of the break-up of the Soviet Union, as a country now fully exposed to global economic events and forces.
There have been found positive aspects of Russian competitiveness and entrepreneurship, as well as negative aspects of the country. The survey data which have been used for writing and completing of this study showed that Russia will becomes a “superpower” in the broader Asian region and beyond. To make this possible the Russian government should pay attention to specific areas, such as the operating institutional framework, government's interference, the corruption and measures which will support the welfare state of Russian Federation.