Taming `wild' capitalism

Abstract

As a fundamental premise in the rhetoric of free trade, the equation of free markets and democracy was particularly evident in Russia's transformation from a centralized economy to a market economy. During the battle over the new constitution in 1993, Boris Yeltsin and his supporters associated economic liberalization and democracy in successfully maintaining public support for their otherwise unpopular policies. However, that transition ultimately resulted in the takeover of the natural and financial wealth of the country by a criminal business elite and the widespread impoverishment of average Russian citizens. The Russian case exemplifies how the oversimplified discursive equation of free markets and democracy underemphasizes the crucial social role state institutions must play in order for peaceful market democracies to thrive.