Description
Book SynopsisOffers an analysis of the transition to a democratic market economy that has taken place in Russia since 1990. This book focuses on the institutions that are critical to a successful transition and the economic incentives needed to make these institutions work.
Trade Review"A major contribution to our knowledge of how the Russian economy works today and why it is now in the process of failing, written by two of the most prominent and insightful Russian economists working today. The subject of the book is of immense importance and the book contains penetrating insights."
—Michael D. Intriligator, University of California, Los AngelesTable of ContentsPreface vii Introduction 3 PART I: THE POLITICAL ECONOMY OF THE SOCIALIST STATE: CONCEPT, IMPLEMENTATION, DECAY 19 One The Planned Economy Revisited 21 Two A Model of Innovation and the Planned Economy 49 Three Incentives and Producer's Behavior 74 PART II: THE POLITICAL ECONOMY OF SPONTANEOUS TRANSITION: INSIDERS' MARKETS AND THE PROBLEM OF ECONOMIC EFFICIENCY 103 Four Path Dependence and the "Washington Consensus" 105 Five Incentives and Producer's Behavior in the Transition Environment 128 Six Incentives and Producer's Behavior in the Transition Environment: The Decision to Switch 149 Seven Pressure Groups and Oligarchic Power 169 PART III: THE POLITICAL ECONOMY OF A NEW SOCIAL CONTRACT: MEASURES TO PROMOTE DEMOCRACY, COMPETITION, AND ECONOMIC GROWTH 187 Eight Where Are We and Where Do We Want to Go? The Task and Conditions for Social Engineering in Russia 189 Nine Democracy: Curse or Blessing? 202 Ten Institutions, Competition, and Economic Growth 221 Eleven Devolution of Power and the Integrity of the Government 251 Conclusion Can We Do Better? 265 References 269 Index 275
