The relations between economic development and
political stability are very complicated in realistic
social endeavor. The proper handling of these relations in the
transition from a planned economy to a market economy is of particular importance. Political stability includes such factors as stability in state sovereignty, in political
power, in government and in policy.
Instability at any of these levels would lead to instability in political career, bringing adverse effect to social and economic development. Russia has been in such comprehensive political instability since the beginning of the 1990s. It has been in chaos and disorder ranging from state sovereignty to political power and from government to policy. This was extremely unfavorable to its social and economic transition and economic development. Political instability makes it more difficult to materialize the economic transition and to get rid of economic
crisis. Russian history in the last decade of the twentieth century proved that sustained political instability was one of the important reasons for the failure of Russia to extricate itself from economic crisis over a long period of time. The series of measures taken by Putin to defend political stability after he took power not only raised his personal political prestige, but also created a favorable political environment for Russia to rid itself of the economic crunch.