The breakdown of economic ties that followed the collapse of the Soviet Union led to a severe economic crisis and catastrophic fall in
living standards in
post-Soviet states and the former
Eastern Bloc,
[166] which was even worse than the
Great Depression.
[167][168] Poverty and
economic inequality surged between 1988–1989 and 1993–1995, with the
Gini ratio increasing by an average of 9 points for all former socialist countries.
[169] Even before Russia's
financial crisis in 1998, Russia's GDP was half of what it had been in the early 1990s.
[168]
In the decades following the end of the Cold War, only five or six of the post-communist states are on a path to joining the wealthy capitalist West while most are falling behind, some to such an extent that it will take over 50 years to catch up to where they were before the end of communism.
[170][171]