Part 2/9:
The backdrop of this chaotic era was the collapse of the Soviet economy. With state control having dictated everything from food supplies to employment for decades, the dismantling of such systems left a void that few were prepared to fill. Factories ceased operations, salaries went unpaid, and hyperinflation became rampant – by 1992, inflation had surged to an astounding 2,500%. The specter of poverty loomed large, as 70 million people lived below the poverty line by 1994. Amidst this turmoil, a drastic and ill-conceived plan was introduced by the Russian government: every citizen would receive a voucher that could be exchanged for shares in state-owned enterprises. This was intended to foster a culture of capitalism among citizens.