Transition and Oligarchy: The Role of the Russian Oligarchs during the Yeltsin Era

Abstract: By employing the concepts found within the neo-Gramscian theory this thesis analyzes the role and effects of the Russian oligarchs during a period of transition in Russia, primarily from 1991 to 1993, during the so-called Yeltsin era. The political and economic changes during this period of time, especially the new market and privatization reforms that were implemented under Yeltsin contributed to a weak hegemonic development, for instance, and enabled the oligarchs to advantageously position themselves within politics and finance. The oligarchs went from giving guidance to the government on the privatization reforms to controlling a large percentage of the Russian economy and holding relevant positions in the Russian state apparatus. This was partly due the skillfulness of the oligarchs but the political circumstances under Yeltsin were also favorable to them and as the neo-Gramscian theory shows, their rise and role were in large connected to the political and economic development of the time. Some of the effects that the role of the oligarchs had on the transition process was a more fragmented Russian society and an uneven distribution of capital and power. The Russian government largely became a government of and for the oligarchs.