The aim of this study is to explain the present state of Russia's political economy in the light of the past, for the future. Three phases have been identified in Russia's successful economic transition since the crisis of August 1998. Phase one was associated predominantly with an effective depreciation in the value of the ruble, which is a necessary condition for macroeconomic stabilization.

Why are we hearing so much more about globalization and the economic issues that are a major component of it today than ever before? Between major advances in technology, dropping costs of communication and transport, and widespread innovation occurring at a pace never seen before, distance and national borders are no longer the barriers they used to be. In the past, most people rarely ventured outside their home country; today, the hands of foreigners can be seen in myriad goods and services we use every day.