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The economic crisis currently facing Russia can be regarded as the logical outcome of the structure of the Russian economy in the later years of the Soviet era and in the post-Soviet era. Ordinary Russians have little confidence in the willingness of financial and political leaders to support the rule of law or to take responsibility for public welfare. It is now vital that the new Russian government fosters a sense of trust. It may be necessary to introduce currency controls to protect the rouble, and price freezes may be needed to boost consumer confidence in the market.

Extreme views on the likely outcome of the forthcoming presidential election in Russia are indicative of the extent to which democracy has failed to become firmly established there. Business leaders are predicting that a victory for the Communists will bring chaos, and there is no expectation of a peaceful transfer of power from one government to the next. The main problem is that the Russian tradition of politics being organised by cliques has still not been overcome.

The war currently taking place between Russia and the rebel republic of Chechnya will have extensive repercussions. It is likely to decide the fate of Russian president Boris Yeltsin, who is now isolated and widely criticised. The war is proving extremely destructive, both to Russia and within Chechnya itself, and the high costs involved will be felt for many years to come. This war is particularly significant in Russia's history because it has brought the Russian army into conflict with Russian citizens.

The Oct 1993 revolution in Russia is the second part of the revolution which began with the failed putsch of Aug 1991. Supporters of Boris Yeltsin in Aug 1991 changed their minds when they realised his economic reforms would remove power and that he intended to destroy the Soviet Union. About 300 deputies always blocked privatisation and claimed Ukrainian territory. The inherited constitution did not separate the legislative and executive functions of government, creating conflict. Regional leaders are needed to administer the planned elections in Dec 1993.