Russia's Market Economy is a seminal account of Russia's transition to the market, its tortuous development as a fledgling market economy through the 1990's, right through to its spectacular collapse in August 1998. Rather than beginning with the economic collapse, the book traces the historical mismanagement of Russian wealth through to the Soviet command economy, and on to Gorbachev. Stefan Hedlund finally discusses what lessons should be learned from the damage inflicted on the Russian economy, as well as its social, legal and political infrastructure, by the race of reform. This fascinating and pioneering study is the first genuinely interdisciplinary explantion of why Boris Yeltsin's economic reforms ended in such dismal failure. Providing an essential background, through its systematic institutional analysis, on how and why Russian cultural specificity and history makes it different from the 'Western ' role model; and how that should affect current decision-making. It is written for those studying politics, economics, East European Studies, as well as for general courses on Russia's post-Soviet development.