Post-communist governing elites had a vision of a transition to a type of society characterised by wealth, markets, private ownership, democracy and civil society. The transformation in Russia is analyzed in terms of company structure, economic outcomes and patterns of social integration, elite and class fragmentation. On the basis of a comparative political economy, different models of capitalism are defined (competitive or market-led and cooperative or negotiated). The Russian economy is defined as a perverse chaotic social formation. It is contended that policy should move towards a state-led “negotiated” type of capitalist system.

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