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This book constitutes an up-to-date treatment of Russia's economic development and economic policies since 2000, when Vladimir Putin became the President of Russia. After the slow decline and sudden collapse of the Soviet Union, Russia embarked upon a multi-faceted change. This included transition from central management to a market economy, from one-party rule to democracy, from multi-national empire to nation state, and from relative autarchy to opening up to the European and global communities. This book concentrates on economic change, exploring how in spite of steep production decline, widening welfare differentials and increasing social uncertainty, the 1990s also created many of the institutional and policy preconditions for a functioning market economy.