well, think about it yourself. You are not the leader of the government. You are the omnipresent, omniscient (as far as your civ is concerned, at least) invisible being. Over the course of the game, there are countless governments formed. The governments, as they are in Civ, represent profound changes, not "overnight" reforms like what happened in Russia - and, to make the record clear, there was a coup attempt by the hard-liner Communists, which failed, during Gorby's rule. (and dont confuse Republic with Democracy - it is easy enough to do if you apply Civ terms to their real life applications, which you seem to be doing: communism is a republic, so Russia, since 1917 had been a republic)
For a better picture, think what happened in Iran in 1979, or, even better, the French Revolution. In Civ, Anarchy is not a government but the lack of it. It is playing with terms somewhat, but reflect a bit on it and you'll escape the apparent paradox.
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