Former Soviet state

Economy

Most of the former Soviet states began the transition to a market economy from a command economy in early 1990s and made efforts to rebuild and restructure their economic systems, often following neoliberalshock therapy policies, with varying results. In all, the process triggered severe economic declines, with gross domestic product (GDP) dropping by more than 40% overall between 1990 and 1995. This decline in GDP was much more intense than the 27% decline that the United States suffered in the wake of the Great Depression between 1930 and 1934. The reconfiguration of public finance in compliance with capitalist principles resulted in dramatically reduced spending on health, education and other social programs, leading to a sharp increase in poverty and economic inequality. The economic shocks associated with wholesale privatization resulted in the excess deaths of roughly 1 million working age individuals throughout the former Soviet bloc in the 1990s. A study by economist Steven Rosefielde asserts that 3.4 million Russians died premature deaths from 1990 to 1998, partly as the result of the shock therapy policies imposed by the Washington Consensus.