At the end of 1998, seven years of Russian economic reform seemed to come to a denouement in which the conditions of life were in many respects worse than when the new state began in 1991. The late summer financial crisis and currency collapse, which resulted in shortages and breakdowns in nearly every kind of transaction – from wire transfers and ATM withdrawals to simple mail deliveries and grocery purchases – were remarkable not only for the velocity and depth of the crisis, but also for the lack of surprise or outrage with which the crisis was met by the population. Russians had, tragically, been there before.

However, within only a year, the sense of despair has given rise to renewed optimism. As it turns out, the Russian government's default and the swift devaluation of the ruble in 1998 were followed in 1999 by the first real signs of economic recovery, namely, positive growth and especially gains in industrial production. For those studying economic reform in Russia, the surprising post-1998 economic progress was even more remarkable because it followed what seemed like the total collapse of the economic reform program of the 1990s. Thus, rather than resolving doubts about of how economic reform in Russia has proceeded, the post-1998 turn of events has raised new questions and suggests the need for further research.