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The economic power of the Russian state has declined to a point where it is no longer able to perform its basic function - maintaining law and order and providing social services. This innovative book proposes that the inherent weaknesses of the post-reform Russian state arose from the manner in which the Soviet Union dissolved combined with the critical role played by President Yeltsin.

Piroska Nagy argues that the initial type of reforms undertaken weakened the state even further, perpetuating short-termism, inhibiting competition and promoting asset stripping of its natural resources by the managerial elite. The author compares the experience in Russia with that of other countries in transition including the Czech Republic, Hungary, Poland and China to discover why they have not seen a similar collapse in the role of the State.