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The Post-Communist Transition To eliminate the distortions of the ACS system and in favor of democratization and capitalism, Yeltsin's shock program, employed days following the dissolution of the Soviet Union, cut subsidies to money-losing farms and industries, decontrolled prices, moved toward convertibility of the ruble, and moved toward restructuring the largely state-owned economy. Existing institutions, however, were abandoned before the legal structures of a market economy that govern private property, oversee the financial market, and enforce taxation were functional, despite the fact that the two major components of a macroeconomy are banking system and the state budgetary system. According to market economists, the dismantling of the administrative command system in Russia was supposed to raise GDP and living standards by allocating resources more efficiently. It was supposed to create a movement outward towards production possibilities by eliminating of central planning, substituted by decentralized market system, eliminating huge distortions through liberalization, providing incentives through privatization. Instead, over half the population is now impoverished in a country where povert