This is a study of the transition from state socialism to capitalism in Russia. Case studies of the wood, coal, gas and military industries in the Komi region will be undertaken to examine the hypothesis that the transition exaggerates pathologies of the old economic order, leading towards a form of merchant capitalism. It is also hypothesized, that with the collapse of the party state, there is an intensification of monopoly, an increase in barter, and increased worker control over production. Current policies of shock therapy, involving stabilizing currency, price liberalization, bringing down tariffs and privatization may not lead to modern capitalism but may create a form of merchant capitalism which may create obstacles to economic development. This study will make a significant contribution to our understanding of the ways in which the old economic system under state socialism may present a series of obstacles to change in economic organization in spite of widespread political support for such changes.
