How did Catherine the Great modernize Russia?

Catherine the Great ruled Russia from 1762 to 1796.  She
tried to modernize Russia in many different ways, ranging from economic reforms to
governmental and even social reforms.  Her reforms were not particularly effective,
however, and Russia continued to be less modern than other European
countries.

For example, Catherine tried to modernize the
Russian economy by breaking down state monopolies over various areas of the economy. 
She modernized government by setting up different levels of government (like provinces
and districts) so that the governing of the country could be more efficient.  She even
experimented with allowing greater freedom of
speech.

Catherine the Great tried to modernize Russia in
many ways, but did not really succeed.