The Piratization of Russia

by Marshall I. Goldman

In 1991, a small group of Russians emerged from the collapse of the Soviet Union and enjoyed one of the greatest transfers of wealth ever seen, claiming ownership of some of the most valuable petroleum, natural gas and metal deposits in the world. By 1997, five of those individuals were on Forbes Magazine's list of the world's richest billionaires. These self-styled oligarchs were accused of using guile, intimidation and occasionally violence to reap these rewards. Marshall I. Goldman argues against the line that the course adopted by President Yeltsin was the only one open to Russia, since an examination of the reform process in Poland shows that a more gradual and imaginative approach worked there with less corruption and a wider share of benefits. The Piratization of Russia is an accessible, timely and topical volume that is required reading for those with an interest in Russian reform. Its appeal will range from students, academics, economists and politicians to the interested lay-reader keen to understand Russia's problems and learn how they could have been avoided.

Genres: History, Economics, Nonfiction, Russia

300 pages, Paperback

First published April 10, 2003

About the author

Marshall Goldman was Professor of Economics Emeritus at Wellesley College and Senior Scholar at the Davis Center for Russian Studies at Harvard University. An internationally recognized authority on Russian history, politics, and economics, he met with Mikhail Gorbachev and interviewed Vladimir Putin, and advised former President George H.W. Bush and President George W. Bush on Russia. Goldman wrote for publications like Foreign Affairs, The New York Times, The Washington Post, The New Yorker, and The Atlantic Monthly; and appeared on numerous television programs, including The News Hour, Crossfire, Face the Nation, The Today Show, and Nightline.

Reviews

[Kevin Swift · Rating 4 out of 5]

This was a well-researched book - Goldman obviously knows what he's talking about. I give it 4 stars for that reason, and it's certainly worth the read for anyone interested in the topic. I can't give it a perfect 5, however, because reading in 2024 makes the minute details seem a little irrelevant at this point. I was hoping for something more relevant on a broader scale - ie, is the Washington Consensus viable, or was Russia's disastrous privatization somehow reflective of issues with this school of thought?

This book focused much more on specifics than such broad questions as that one. Perhaps the error was mine for expecting something which this book ended up not being about. But in any case, I can't strongly recommend it for these reasons.

I still gained from it, however. It was interesting to get some perspective on this era in Russia's history. Certainly, in 2024, we are still dealing with the fall-out of the fall of the USSR and the rise (and fall?) of the unipolar world.

[Graham · Rating 3 out of 5]

Tempted to give an extra half star but I think it loses it due to relevance/timing. Definitely a lot of neoliberal kool-aid throughout, much of which is definitely showing its age. However, no points off in hindsight for hoping for better from Putin - it's nobody's fault but his own that Russia never really got past the oligarchy, just on his terms instead.

Still quite good for seeing the origins of today's political economy in Russia and the absolute shambles of privatization that paved the way for it.

[Rob · Rating 4 out of 5]

A remarkable account of the early years of Russia’s transition to the market and the way the country’s vast natural resources were seized by a variety of shady characters. Goldman’s book is nearly ten years old now but still devastating in its impact.

Distinction is made between the nomenklatura oligarchs – political leaders and factory owners who took advantage of their lofty position in USSR days and what Goldman labels the upstart oligarchs – Roman Abramovich included – a group with a shadier past.

Vladimir Putin’s promise to crack down on the thievery class has been shown to be hollow, some notable high-profile cases apart, and the image of a country without institutions, corporate governance and any kind of financial regulation hastening to market fundamentalism under messrs Yeltsin, Gaidar and Chubais is an everlasting one.

No real quibbles although Goldman is a little too effusive about McDonald’s success in cracking the Russian market for my liking – he backs this up by contrasting the shininess of the Golden Arches with the fleapits the population were forced to endure before so I accept his point.

[Caitlin]

The Piratization of Russia: Russian Reform Goes Awry by M. Goldman (2003)