Preface 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
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 Angeles
Serguey Braguinsky is Associate Professor of Economics at Yokohama City University, Japan. He is the author of previous books in Russian, including Monetary Policy in Japan, and is coauthor and editor of a book in Japanese, Industrial Change in China and Russia. He has published articles in numerous journals and is the first Russian scholar to obtain tenure in economics from a university in Japan. Grigory Yavlinsky is a Russian economist and leader of the "Yabloko" party. He is a member of the Duma and was a candidate for the presidency of Russia in 1996. He is the author of numerous books, including Transition to a Market Economy, The Grand Bargain, and Lessons of Economic Reform in Russia.
"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 Angeles
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