All 15 new independent states established in the economic space of the former Soviet Union suffered big declines in output and trade after their independence. This study summarizes cross-country experience on the role of trade and payments policies in the linked contraction of output and trade by drawing on eight country case studies: Estonia, the Kyrgyz Republic, Latvia, Lithuania, Moldova, Russia, Ukraine, and Uzbekistan. The results of the case studies show that trade reform and reorientation of trade toward the rest of the world have done much to arrest the decline in output usually associated with the transformation from plan to market. Also available in Russian: Stock no. 13687 (ISBN 0-8213-3687-8).