The events in the former Soviet Union from 1985 to 1991 were nothing short of spellbinding. Academics, pundits and the man on the street were all transfixed by the "Gorbachev phenomena." Why Perestroika Failed argues that Gorbachev's reforms ultimately failed because they were not based on a sound understanding of market and political processes.

Why Perestroika Failed is the first book to apply an Austrian market process approach to analyze the economic dimensions of the Soviet system, and a public choice approach to address the political aspects. Peter Boettke presents a critical assessment of the reform movement, examining the various proposals and paradoxes of the Soviet reform efforts.

Boettke argues that perestroika failed partly because it was never implemented. He goes on to demonstrate that even if the perestroika program had been carried out fully, it would not have produced the structural changes necessary to revive the former Sovieteconomy. A knowledge of why perestroika failed is of crucial importance as the former Soviet republics and East and Central Europe chart a new course.