Cruel extremes of modern Russia

The fall of communism has helped some, but not all

By CNN's Steve Harrigan

MOSCOW, Russia (CNN) -- In Moscow the opening of an international Ikea furniture store attracts 40,000 shoppers.

But in another part of Russia, eight time zones to the east, they line up on the street to protest: no heat, no electricity and 40 degrees below zero.

The contrast is stark. In Moscow the best and the brightest earn spare cash by designing new programs for one of the world's most popular hand-held computer games.

Just a day's drive south a surgeon with 18 years' experience objects, after the state offers to pay his monthly salary of $40 ... in manure.

EXTRA INFORMATION In-Depth: Soviet legacy: From communism through chaos     MORE STORIES Russia reflects on collapse of USSR   Eyewitness: CNN's Eileen O'Connor looks back   Jailed ex-Stalin agent talks   Mother keeps vigil for daughter felled by tanks     AUDIO CNN's Jill Dougherty: The coup still brings out mixed emotions 1.62 MB / 154 sec WAV sound Michael McFaul, of the Carnegie Endowment: The fruits of the revolution are still yet to come 3.01 MB / 287 sec WAV sound    Soviet Uprising: Collapse of a Coup Special Program on CNN International TV 1730 GMT Monday, Aug. 20 2100 GMT Monday, Aug. 20

Ten years after the end of a command economy, the answer to how Russia is doing depends on where you look.

There is Moscow, and there is the rest of Russia.

Financial analyst James Fenkner, of investment banking firm Troika Dialog, told CNN: "Moscow has done incredibly well throughout this period. Moscow is where the banks are, Moscow is where most of the big corporations are.

"By and large, most of the people in the city have moved up."

They have moved up three years after a rouble devaluation drove out most Western investors.

Now with a new, popular president, strong revenues from oil sales and a flat 13 percent tax on personal income, many say the business environment, even the way of thinking, has changed.

Fenkner added: "The biggest difference was pre-'98 -- there was a lot of window dressing.

"The idea was you can go to London, buy a London-made suit and therefore you are a respectable businessman."

That era of anything goes may have ended, but the era of making a competitive product is nowhere in sight.

"For these workers, assembling black and white televisions, and for thousands of dying factory towns across the country, the glitz of the capital means little."