After a decade of market reforms, it is obvious to mostobservers that something has gone wrong in Russia. Someeconomic indicators suggest modest successes in instituting amarket economy, but most of the evidence is clear that theeconomic and social crisis has far exceeded what might beexpected in terms of a "transformation recession." Industrialand agricultural output is down substantially, capital renewalis not keeping pace with the retirement of old machinery, thenation is deindustrializing, real living standards have plum-meted, and investment capital is fleeing the country. Theauthors of this book conclude that "the Russian privatizationprogram was nothing but a grandiose failure" (p. 6).