Sale of the Century: Russia's Wild Ride from Communism to Capitalism

Chrystia Freeland, Moscow bureau chief for the Financial Times, chronicles Russia's roller-coaster ride from communism to crony capitalism. She writes poetically, with creative metaphors, colorful word pictures, and a keen insight into Russian history. The copious adverbs, adjectives, and details--sometimes superfluous-may, however, irritate those reading her book for the "bottom line." The book also omits analysis of organized crime in general. On the other hand, a key strength of Sale of the Century is Freeland's ability to bring to life the key players in Russian politics: Yeltsin, Gaidar, Chubais, and the handful of wealthy oligarchs. As a journalist, she was able to meet most of them often. The book enables the reader to develop a more refined and differentiated understanding of the oligarchs. Among these are Mikhail Friedman ("the outsider") who heads the Alfa Group, an oil, industrial, trading, and financial conglomerate. As a Jewish Ukrainian barred from prestigious educational establishments, Friedman began his entrepreneurial ventures early, starting with illegal bartering of theater tickets and later obtaining Western consumer goods for top officials (p. 115). Mikhail Khordokovsky ("the apparatchik") is also Jewish and leads Menatep, the bank and financial-industrial conglomerate. Outwardly docile with a soft voice and slight stutter, Khordokovsky is adept at winning the trust of the government officials, having pursued a parallel career in the Komsomol. Beneath the subordinate exterior, however, lies a ruthless person who installs hidden video cameras in his buildings and does not hesitate to fire slackers (p. 121).Unlike Friedman and Khordokovsky, Vladimir Potanin ("the blueblood") was the son of a senior Soviet trade official and already had a promising Soviet career. He realized in the nick of time that, as the Soviet Union's collapse accelerated, "the advantages that had ensured Potanin's advancement suddenly threatened to become golden handcuffs" (p. 129). He started his own business, which eventually became Oneximbank, which now handles the "juiciest" government accounts, including the State Customs Agency .., and the state arms-trading company "Rosvooruzheniye," which keeps "a few tens of millions" on Potanin's books (p. 131).Vladimir Gusinsky ("the impresario") dabbled in many entrepreneurial activities (driving a gypsy cab, peddling blue jeans, and "medicinal" copper bracelets) and also worked as a theater director before founding the consortium of banks (the Most group) and persuading his patron Yuri Luzhkov, mayor of Moscow, to transfer money to them from Soviet-era banks. He founded inter alia the newspaper Segodnya and the first independent television channel (NTV).His main rival is Boris Berezovsky ("the nomad"), although the two oligarchs have functioned temporarily as allies. Perhaps the most unsavory of all the oligarchs, Berezovsky, also Jewish, has been particularly good at winning the favour of members of Yeltsin'

Wow, what a great book! Not just one of the best books on post-Communist Russia, but one of the best books on anything.Ms Freeland brings to life the key characters in what is undoubtedly one of the most gripping stories of our time. It is a real page-turner. She writes beautifully, colouring her text with engaging personal anecdotes which bring the realities of modern Russia to life.The book is a work of journalism (based on personal interviews) rather than history or economics. All the same, Ms Freeland also has an excellent understanding of the theory and practice of economic reform. A first-class journalist, she can break a complicated issue down to its essential core, in terms anyone can understand.Her analysis and judgements are very level-headed and fair. From the perspective of 2001 she is probably too pessimistic about Russia's economic transition. Still, Ms Freeland is a lot more balanced than so many other commentators (notably hysterical Americans of the "who lost Russia?" school). For example, she draws a necessary distinction between the early phase of Russian privatisation, and the sordid "loans-for-shares" scheme of the mid-1990s, which is the centrepiece of the book. The book probably overstates the centrality of the loans-for-shares scheme. But it isn't really a comprehensive survey of Russian economic transition. Rather it concentrates on the rise (and ultimate falling out) of the oligarchs, whose corrupt and scheming ways culminated in the 1998 crash. As the Financial Times correspondent in Moscow, Ms Freeman knew all these remarkable characters intimately. At the same time, though, the book shows the complexity of post-communist Russia, with a colourful cast that goes beyond the oligarchs and their cronies. Here are the "young reformers", whose story of hubris followed by nemesis gives the tale elements of classical tragedy (Ms Freeland draws apt parallels with the stories of Dr Faustus and Dr Frankenstein). Here are the New Russians and Red Directors. The shifting alliances and conflicts between them are expertly described, with telling personal detail. Ms Freeman shows how these conflicts are as much social and generational as economic - which is essential to understand what post-communist Russia is really all about.I think that this book will become a classic, which people will read in decades to come to get a first-hand understanding of Russia during the turbulent 1990s.

I arrived in Moscow at the same time Chrystia Freeland did. Like her, I found fascinating material for a book on contemporary Russia almost every day.The terrible thing is Ms. Freeland has now written the book I had planned to write. She had great access to Russia's prominent players and has written a lasting, undeniably readable, work on current political and economic developments in Russia. She has an entertaining style built upon a savvy Westerner's view of Russia as well a knack for finding a memorable phrase to encapsulate her characterization of specific traits, periods and events. These bon mots appear so regularly I took to keeping a list. My list of 25 includes "unofficial capitalist politburo," "the Kremlin's own Dirty Harry" and "gladiator capitalism." The best of all may be on page 121, but you must judge for yourself. "Sale of the Century" and Yevtushenko's "Don't Die Before You're Dead" are far and away the two best books on the New Russia. Now that Chrystia Freeland is herself far away from Russia, perhaps she will permit me another chance to share my views on a Reborn Russia.

The failure of Russia's transition to a market economy easily ranks as one of the most important stories of the 1990s. Unfortunately, while this story is important, it is not well known. In part, this must be blamed on the nature of Russia's market transition: much of it was done behind closed doors in the proverbial "smoke filled room."This fact makes Crystia Freeland's book all the more valuable, for she, through in-depth interviews with nearly all the important players, has penetrated beyond this haze to give us the real story of the capitalist transition in Russia.Freeland spent several years in Russia writing for the Financial Times and it shows, as her book echoes with every nuance and detail of this story. Through direct quotes, a myriad of background details, and anecdotes, the leaders of Russia's marketization are transformed from names to living, breathing entities. Furthermore, where other accounts might be satisfied to present only the most oblique facts, Freeland's book digs deep to provide the real story of what happened behind the scenes.Although the depth of this book is certainly a strong selling point, Freeland's prose is also notable. Often gripping, never cumbersome, her prose exceptionally conveys the details of this story from her notebook to our eyes. Freeland's own analysis and insight gives us a valuable insiders' interpretation of events and adds a personal touch. Where appropriate, irreverent details are sprinkled in providing color to the story as well as quite a few shocks.Overall, you'd be hard pressed to find a better account of Russia's market transition than the one Crystia Freeland presents in Sale of the Century.

Compliments to Chrystia Freeland who has written a comprehensive, intelligent book on how the combination of naive reformers, corrupt officials and ambitious "oligarchs" succeeded in ripping off poor Russia of untold billions as it tried to transform itself from 70+ years of Communism to a free market economy. The West has its share of the blame with its band of greedy investment bankers and other rogues who participated in the heist of the century. An incredible story told with exceptionally clarity by Ms. Freeland , former Moscow bureau chief for the Financial Times of London. I have spoken to people who are very well informed on what is happening in Russia who unanimously support the accuracy of the book and highly recommend it.