How did the collapse of the Soviet Union impact the global economy?

I agree with this perspective, but even more broadly, this incident led to a literal declaration of victory in the Cold War that was not only between USA and Soviet Union, but also between capitalism and communism as alternative philosophies for economic growth. Several countries that were maintaining equidistance from both of these political and economic philosophies started marching towards capitalism and free trade with greater vigor and conviction, as the failure of communism appeared ostensibly obvious. Rise of countries like India in the global stage as open and strong economies was inspired atleast partly by the disintegration of communist-based Soviet system.

For the first time, the capital globalized entirely. By then, the capitalist system had no rivel and became the dominant economic model worldwide, marking a victory for free markets and private enterprise over centrally planned economies. This shift in global power dynamics had a ripple effect across the international economic landscape, leading to increased economic integration, cross-border trade, and the rise of multinational corporations.

The fall of the Soviet Union transformed the world economy. Economic implications of the collapse include the stagnation of economic growth, increase in foreign debt and a need for western aid, loans and investments to support the economies that were a part of the erstwhile USSR. The dissolution which perhaps marked the end of the Cold-War led to the emergence of new Geopolitical dynamics which had large scale impacts on the global economy. The former Soviet Union saw the GDP fall by over 50%. To conclude my point, we saw a slowdown in global economies and substantial implications for global prosperity.

The collapse of the USSR brought profound changes to global trade, particularly evident in the example of my country, Georgia. During the Soviet era, trade was predominantly internal. Georgia, positioned in the southeast, specialized in producing subtropical agricultural products (when it is not a country's competitive side in a global scale). With the Soviet Union's fall, Georgia, like many former Soviet states, was thrust into the global market. This transition forced a reevaluation of what we could competitively produce. The comparative advantages once dictated by Soviet planning had to be reassessed against a backdrop of global competition and market demands.

Soviet Union and countries under its influence all over the world, were all together one fourth of the world. Collapse of Soviet Union opened huge opportunities for western companies to expand their markets. At the same time, producers were not ready for raising demand for consumer goods and started to compromise on quality for quantity. In my opinion rise of China’s economy is directly linked to collapse of Soviet Union, as western producers tried to fill the post Soviet markets with cheap products and make it fast.

The collapse of Soviet Union led to increased labor mobility as individuals searched for new opportunities in different areas thereby creating more diverse and global workforce who brought in a range of skills and expertise. However, on the flip side, the outflow of skilled professions from former Soviet Union led to brain drain.

About 1 million immigrated to Israel, which gave the country a fantastic boost. Many immigrants were highly skilled academics, some of whom became successful entrepreneurs and helped shape Israel as 'startup nation'. Many others brought beautiful expressions of culture and Israel gained musicians, dancers theater performers and painters. The second generation included many ambitious people who studied and are pushing the country forward.

Agree: I agree with the statement. The collapse of the Soviet Union indeed spurred massive migration and labor mobility. Millions sought improved opportunities, security, or returned to ancestral homelands, impacting demographics and labor markets across former republics. This widespread movement influenced social welfare, trade, and cultural exchange between origin and destination countries. The dynamic shifts in population had far-reaching consequences, highlighting the intricate interplay between geopolitical events and global migration patterns.

Creo que los flujos migratorios, en muchos casos, contribuyen de forma muy significativa al crecimiento económico de su país de adopción y al suyo propio. Desempeñando magistralmente, en muchas ocasiones, trabajos en los que aportan un saber estar, una creación de valor añadido a sus clientes por sus habilidades comerciales y aportando económicamente a sus familias gracias al ahorro generado que reinvierten en sus países gracias a las remesas. Además, contribuyen al sostenimiento de los sistemas de seguridad social mejorando la proporción contribuyente/ jubilado. Y muy meritorio la creación de valor que aportan como personas, pues trabajan en Equipo y crean Equipos a su alrededor.

On one side establishing new national rules and barriers for labour related migration. On other side creating personal liberty in movement.

The oil market downturn in the 1980s along with the 1979 price shock were major contributors to the collapse of the Soviet Union in 1991. It’s already more than 30 years. Yet, since then, Russia emerged as a global oil power forming an alliance with the OPEC countries known as OPEC+, in 2016, which includes many former USSR republics. Russian oil production increased from just above 6mbpd in 1991 to more than 9mbpd in 2023. We also saw privatization of oil and gas assets which allowed foreign investors to enter post-Soviet markets. Furthermore, growing concerns about climate and energy transition have added an extra dimension of uncertainty as producers attempt to balance their plans to meet environmental targets.

Agree: I agree with the statement. The collapse of the Soviet Union profoundly impacted the global economy in terms of energy and the environment. Disruption in oil and gas production led to shortages and conflicts. Environmental degradation from Soviet industrialization, including nuclear accidents and pollution, posed threats to health and ecosystems. This transformation emphasized the interconnectedness of geopolitical events and their repercussions on energy and environmental stability.

Um exemplo de grande relevância de acidente ambiental em uma república ex-soviética foi Chernobyl. A ausência de recursos para um bom monitoramento é apontada por alguns autores como um fator de grande influência para que o acidente tenha ocorrido.

The vast natural gas deposits in the Central Asian region of the former USSR were now open to the world, drawing massive attention from the US and China to fulfill their energy security needs. The area is home to the second largest small hydropower potential in the world, with a capacity of over 34,000 MW. This played a large role in the Chinese BRI, as well as military initiatives of both countries, and Central Asia has become a region of power struggles.

Os impactos no mercado energético causados pela URSS são vistos até hoje! O Principal deles é o protagonismo na oferta, ja que este bloco é uma potência petrolífera

Un autre effet indirect majeur a été l'éclatement de bloc de l'est ouvrant la voie à l'élargissement de l'UE vers les Pays d'Europe Centrale et Orientale constituant ainsi la plus importante zone de libre échange au monde.

The collapse of the Soviet Union reshaped global geopolitics, creating a multipolar world. This shift, from a clear-cut bipolar rivalry to a fragmented landscape, brought new challenges transcending national borders, like environmental issues, pandemics, and resource shortages. The need for a 'human foe' persists, yet today's global threats demand cooperative, not confrontational, responses. In this era, success lies in collaborative action against shared challenges, moving beyond conflict towards a unified approach to global problems. Our modern world necessitates a paradigm shift from traditional geopolitics to a framework of collective responsibility and mutual cooperation.

In addition to above, the changes in the post-Soviet energy landscape had implications for global energy markets. The increased participation of these states in international energy trade affected global energy supply and demand dynamics. It also played a role in shaping geopolitical relations, as energy became a key factor in diplomatic and economic strategies in the region.

The Warsaw Pact and ensuing 'peace dividend' allowed the West to significantly reduce defence spending. In retrospect, the post-Soviet era of reduced military expenditure in Western Europe is clearly a missed opportunity for maintaining a consistent level of preparedness. It is now clear that the security environment demands constant vigilance and a willingness to invest in defence, even during periods of relative peace. Particularly as the Russia-Ukraine war enters a prolonged stalemate, Western Europe is now being forced to confront the pitfalls of myopic economic and foreign policy choices that have left them strategically and logistically unprepared for the resurgence of conventional military threats on the continent.

A clear statement on this. No country under former Soviet influence was forced to join NATO nor the EU. All tjhose who di - did so voluntarily

IMPACT ON CAPITALISM As long as the red peril existed, capitalists were kept in check. They accepted, state presence in the economy and the implied limits to their power. Once communism was defeated, the "capitalist" agenda was aggressively marketed - privatisation, minimal statist influence, free markets, global trade. This allowed sectors of economy (& employment) to pass from public to private hands, financed through debt. Thereafter, the business cycle could not continue - for fear of mass unemployment, debt defaults / bank collapses, and ultimately, social unrest. Rates had to stay low causing asset prices to rise. Oligarchy emerged. Inequality fuels social ferment leading to totalitarians gaining ground. We have come full circle.

Para muchos políticos latinoamericanos, el colapso comunista parece no haber existido. Se siguen proponiendo políticas controlistas del mercado, roles del estado que van más allá de la provisión de bienes públicos eficientes e incluso modelos de orden social que afectan la libertad económica y personal. —— For many Latin American politicians, the communist collapse seems not to have happened. They continue to propose market control policies, roles of the state that go beyond the provision of efficient public goods, and even models of social order that affect economic and personal freedom.

EU institutions. The higher and higher degree of integrations among EU member states occurred in the last 30 years, culminated with the Next Generation EU programme in place since the 2020-21 pandemic crisis, is not only a result of more integrated real and financial markets at European level. It reflects the high accountability and reliability of the decisions adopted by EU institutions, such as the EU Parliament, the Eurosystem (pooling together the ECB and national central banks), or the Eurogroup. These institutions could have not develop properly in a geopolitical environment of Cold War(s), with the core countries of the Old Continent split in the polarized spheres of communism opposed to western capitalism.

Other than all these viewpoints the economic inefficiencies of the centrally planned system, coupled with unsustainable military spending, weakened the Soviet economy. Gorbachev's reforms aimed at openness and restructuring (glasnost and perestroika) exposed systemic flaws. Economic decline, coupled with political restructuring, catalyzed the Soviet Union's collapse. The global impact included energy disruption, geopolitical shifts, and newfound challenges and opportunities in international relations.

ECONOMIC POLICIES/ GOVERNANCE Despite Hayek's Use of Knowledge in Society (1945) arguing why a market economy is more efficient than one with central planning, the planned economy model had its patrons among many a politicians and administrators. The idea that enough computing power would allow for proper resource allocation and efficient utilization. Such policies or approach to economic governance came under serious question after the collapse of the Soviet Union. That said, the Chinese model in the 2010s brought back the "romance" attached to a centrally planned economy.