What led to the classification of the Soviet Union as a "misdeveloped" country?

Answer 1

Russia's new private entrepreneurs came to include a large criminal "mafia" that preyed on government, business, and individuals. Russia became a kleptocracy, an economic and political system based on crime. Organized crime and corruption became pervasive and made "free enterprise" far from free. Lacking an independent judiciary and any mechanisms of accountability, corruption ran rampant. Bribes and kickbacks throughout all levels of Russian society have skyrocketed the costs of everyday necessities such as water, housing, and electricity. A company wanting to build a factory, for example, has to pay off officials at every stage of construction; without the payouts, officials' partners in organized crime would terminate the project. Anti-corruption laws are often imposed only on those who are critical of authorities. Like any other commodity, bribes are subject to inflation: in 2011, the average cost of a business-related bribe of $4000 was a 26-fold increase from the 2008 level. All of this corruption adds up, wasting 48 percent of Russia's GDP, according to the World Bank.
Tracking figures like these, some observers have classified post–Soviet Russia not as a less developed or more developed country, but as a "misdeveloped country.". From a technical standpoint, Russia is an MDC—but just barely, with a per capita GDP (PPP) of $18,100 ($17,000 is the dividing line between MDCs and LDCs in this book).