The Emergence of Capitalist Economy in Russia Noen H. Loquiño I.Introduction: A Newfound Freedom II.The Beginnings of Socialism A.Karl Marx and the Communist Manifesto B.The Theory of Socialism C.The Dual Revolution in Russia III.History of the Soviet Union A.The Early Years B.Stalin\'s Reformation C.World War II D.The Soviet Union\'s Postbellum Period E.The Cold War IV.The Fall of Communism A.Gorbachev\'s Visions B.The Reunification of Germany C.Freedom for the Republics V.An Economy In Transition A.A Newborn Economy B.Five Years\' Progress VI.Solutions for the Future A.Western Intervention B.Yeltsin\'s Re-election and Future Reform VII.Conclusion: Return to Glory Bibliography I. Introduction: A Newfound Freedom Imagine you are a high school student just about to graduate. You are about to leave your parents, who have directed your actions for your entire life. However, you have never had to make your own decisions, and are having trouble handling your new situation. Now imagine that on a larger scale. An entire nation released from the control of its "parents" with no idea how to use its newfound freedom. The Russian Federation is only a shell of its former glory as the U.S.S.R. because it had to withstand just such a change. The "high school student", a socialist market in which the government makes all the rules, recently was overhauled. The new economic condition in Russia is a free market. However, the people had no experience in handling the independence that they acquired as the capitalist market was established. It had been a long hard journey to get where they were, and now a longer, harder journey is beginning - the journey into capitalism. II. The Beginnings of Socialism Russia did not exist as a nation just seven years ago. It was formed from the ruins of a greater nation. Russia\'s current troubles are based on problems it found, or created, during the years it operated under socialism. This theory, which proposes equality and the means of achieving it, has been scorned by the Western world. One must wonder why such a grand conception has failed. A. Karl Marx and the Communist Manifesto By far, the most important document in the development of socialism was The Communist Manifesto, written by Karl Marx and Frederik Engels in 1848. (Berki) This document was published as a reply to politicians who would accuse their opponents of being Communist for the sake of scaring the public. (Marx) Marx\'s Manifesto was the driving force behind socialism and Communism in Russia. In it, he described the fall of capitalism at the hands of the working classes. (Berki) The following paragraphs are excerpts from that work. "The history of all hitherto existing society is the history of class struggles. Freeman and slave, patrician and plebeian, lord and serf, guild-masters and journeyman, in a word, oppressor and oppressed stood in constant opposition to one another, carried on an uninterrupted, now hidden, now open fight, a fight that each time ended either in a revolutionary reconstruction of society at large, or in the common ruin of the contending classes. (Marx) "Society as a whole is more and more splitting up into two great hostile camps, into two great classes directly facing each other - bourgeoisie and proletariat.... The bourgeoisie, wherever it has got the upper hand, has put an end to all feudal, patriarchal, idyllic relations. It has pitilessly torn asunder the motley ties that bound man to his \'natural superiors\', and has left no other bond between man and man than naked self-interest, than callous \'cash payment\'. (Marx) "Wage labor rests exclusively on competition between the laborers. The advance of industry, whose involuntary promoter is the bourgeoisie, replaces the isolation of their laborers, due to competition, by their revolutionary combination, due to association. The development of modern industry, therefore, cuts from under its feet the very foundation on which the bourgeoisie produces and appropriates products. What the bourgeoisie, therefore, produces above all are its own gave-diggers. Its fall and the victory of the proletariat are equally inevitable. (Marx) "In short, the Communists everywhere support every revolutionary movement against the existing social and political order of things. In all these movements they bring to the front as the leading question in each case the property question, no matter what its degree of development at the time. Finally, they labor everywhere for