Privatizing Russia

Privatizing Russia
Author: Maxim Boycko
Publisher: MIT Press
Total Pages: 180
Release: 1997-01-22
Genre: Business & Economics
ISBN: 9780262522281

Privatizing Russia offers an inside look at one of the most remarkable reforms in recent history. Having started on the back burner of Russian politics in the fall of 1991, mass privatization was completed on July 1, 1994, with two thirds of the Russian industry privately owned, a rapidly rising stock market, and 40 million Russians owning company shares. The authors, all key participants in the reform effort, describe the events and the ideas driving privatization. They argue that successful reformers must recognize privatization as a process of depoliticizing firms in the face of massive opposition: making the firm responsive to market rather than political influences. The authors first review the economic theory of property rights, identifying the political influence on firms as the fundamental failure of property rights under socialism. They detail the process of coalition building and compromise that ultmately shaped privatization. The main elements of the Russian program -- corporatization, voucher use, and voucher auctions -- are described, as is the responsiveness of privatized firms to outside investors. Finally, the market values of privatized assets are assessed for indications of how much progress the country has made toward reforming its economy. In many respects, privatization has been a great success. Market concepts of property ownership and corporate management are shaking up Russian firms at a breathtaking pace, creating powerful economic and political stimuli for continuation of market reforms. At the same time, the authors caution, the political landscape remains treacherous as old-line politicians reluctantly cede their property rights and authority over firms.

Kremlin Capitalism

Kremlin Capitalism
Author: Joseph R. Blasi
Publisher: Cornell University Press
Total Pages: 272
Release: 2018-10-18
Genre: Political Science
ISBN: 1501722220

The first book to describe Russia's massive economic transformation for an American audience, Kremlin Capitalism provides a wealth of data and analyses not previously available in this country. The authors articulate the political and economic goals of Russian privatization, examine the current ownership of the largest enterprises in Russia, and chart the serious problem of corporate governance in the new private businesses. Kremlin Capitalism is based on the only continuous study of Russian privatization throughout the Russian Federation from 1992 to the present. The authors tracked down the story of the transition in the cities, towns, and villages of fifty of Russia's eighty-nine provinces, updating their findings after the June 1996 election. The result is an up-to-the-minute report of the largest property transfer in history and an analysis of one of this century's most significant economic transformations. The volume also characterizes the position of workers in terms of unemployment, wages, union power, and their changing role as employee shareholders.What really happened when Russia privatized its economy? The Kremlin brokered the initial struggle among different interest groups eager to claim a portion of Russian property: workers, managers, the Mafia, the old Soviet bureaucracy, regular citizens, entrepreneurs, Russian banks, and foreigners. While competing with one another, all struggled to free themselves from seventy years of Communist economic culture. Four years after the process began, have large companies learned to offer goods and services profitably and pay dividends to shareholders? Individual stories come alive as the book explores problems Russians face in structuring a new economic system, defining the ownership and governance of thousands of corporations one by one. Russian economic practices are being forged in the heat of fierce political struggles between resurgent Communists and nationalists and old Soviet managers, on the one hand, and more liberal elements of its infant democratic system on the other. Whether a few big conglomerates and the powerful banks and holding companies from Soviet days will dominate the new Russian economy to the exclusion of most citizens remains to be seen.Many questions persist. How will billions of dollars of capital be raised to retool, restructure, and reorient the heart and soul of Russia's economy? Will open stock markets stimulate a new economic order or will that new order be imposed through strong state supports and subsidies? What role will be played by shadowy conglomerates that are trying to shape a disorganized economy into something resembling the old Soviet system? The authors note the paradox of a capitalism conceived, designed, implemented, and evaluated by the Kremlin when one aim of reform is to allow market forces to play freely. Kremlin Capitalism asks whether rapid privatization has catalyzed or complicated the transition to a more liberal political and economic system, a question that will reverberate for decades.

Time to Rethink Privatization in Transition Economies?

Time to Rethink Privatization in Transition Economies?
Author: John R. Nellis
Publisher: World Bank Publications
Total Pages: 44
Release: 1999-01-01
Genre: Business & Economics
ISBN: 9780821345030

IFC Discussion Paper No. 38.QUOTEIt is now universally acknowledged that ownership matters; that private ownership in and of itself is a major determinant of good performance in firms... Decent economic policy and well-functioning legal and administrative institutions... matter greatly as well.QUOTEThis paper looks at what happens when the shift to private ownership gets far out in front of the effort to build the institutional underpinnings of a capitalist economy. The emphasis is on what went wrong and why and what, if anything, can be done to be correct it. Proposals include renationalization and/or postponement of further privatization, both to be accompanied by measures to strengthen the managerial capacities of the state. Neither approach seems likely to produce short-term improvements. The regrettable fact is that governments that botch privatization are equally likely to botch the management of state-owned firms. In a number of Central European transition countries, privatization is living up to expectations; and there is no need for such measures. For institutionally-weak countries, the less dramatic but reasonable short-term course of action is to push ahead more slowly with case- by-case and tender privatization in cooperation with the international assistance community in hopes of producing some success stories that will lead by example.

The Selling of the Soviet Empire

The Selling of the Soviet Empire
Author: Alfred Kokh
Publisher: SP Books
Total Pages: 248
Release: 1998
Genre: Business & Economics
ISBN: 9781561719846

Never before has there been an attempt to transform a massive state-owned economy into a dynamic free market system. The story of the conversion of the dinosaur Marxist Soviet state into the free-wheeling capitalist society of today's Russian Federation is one of the most compelling dramas in history. This tale includes violence, corruption, and a web of political conspiracy. It is a true-life economic-political thriller. Who are the new Russian financial magnates who are grabbing former state property? What were the terms for disposing of the state's immense wealth to private investors? What was the role of American financiers? These questions, and more, are answered here. In addition to what he saw with his own eyes (in the crucial period between 1992 and 1997), Kokh also paints vivid pictures of the influential decision-makers that he worked closely with, including Anatoly Chubais, the little known Kremlin kingpin who ran Boris Yeltsin's re-election campaign and served as both Deputy Prime Minister and Finance Minister. Kokh uses his expert knowledge of the Russian government to bring readers into the momentous meetings that changed the world, including his cogent analysis of events occurring in Russia at the present time.

The Piratization of Russia

The Piratization of Russia
Author: Marshall I. Goldman
Publisher: Routledge
Total Pages: 328
Release: 2003-04-10
Genre: Business & Economics
ISBN: 1134376847

In 1991, a small group of Russians emerged from the collapse of the Soviet Union and enjoyed one of the greatest transfers of wealth ever seen, claiming ownership of some of the most valuable petroleum, natural gas and metal deposits in the world. By 1997, five of those individuals were on Forbes Magazine's list of the world's richest billionaires.

The Tragedy of Property

The Tragedy of Property
Author: Maxim Trudolyubov
Publisher: John Wiley & Sons
Total Pages: 252
Release: 2018-08-16
Genre: Political Science
ISBN: 1509527028

Russian novels, poetry and ballet put the country squarely in the European family of cultures and yet there is something different about this country, especially in terms of its political culture. What makes Russia different? Maxim Trudolyubov uses private property as a lens to highlight the most important features that distinguish Russia as a political culture. In many Western societies, private property has acted as the private individual’s bulwark against the state; in Russia, by contrast, it has mostly been used by the authorities as a governance tool. Nineteenth-century Russian liberals did not consider property rights to be one of the civil causes worthy of defending. Property was associated with serfdom, and even after the emancipation of the serfs the institution of property was still seen as an attribute of retrograde aristocracy and oppressive government. It was something to be destroyed – and indeed it was, in 1917. Ironically, it was the Soviet Union that, with the arrival of mass housing in the 1960s, gave the concept of private ownership a good name. After forced collectivization and mass urbanization, people were yearning for a space of their own. The collapse of the Soviet ideology allowed property to be called property, but not all properties were equal. You could own a flat but not an oil company, which could be property on paper but not in reality. This is why most Russian entrepreneurs register their businesses in offshore jurisdictions and park their money abroad. This fresh and highly original perspective on Russian history will be of great interest to anyone who wants to understand Russia today.

Without a Map

Without a Map
Author: Andrei Shleifer
Publisher: Mit Press
Total Pages: 223
Release: 2001
Genre: Business & Economics
ISBN: 9780262692694

A balanced look at Russia's attempts to build capitalism on the ruins of Soviet central planning. Recent commentators on Russia's economic reforms have almost uniformly declared them a disappointing and avoidable--failure. In this book, two American scholars take a new and more balanced look at the country's attempts to build capitalism on the ruins of Soviet central planning. They show how and why the Russian reforms achieved remarkable breakthroughs in some areas but came undone in others. Unlike Eastern European countries such as Poland or the Czech Republic, to which it is often compared, Russia is a federal, ethnically diverse, industrial giant with an economy heavily oriented toward raw materials extraction. The political obstacles it faced in designing reforms were incomparably greater. Shleifer and Treisman tell how Russia's leaders, navigating in uncharted economic terrain, managed to find a path around some of these obstacles. In successful episodes, central reformers devised a strategy to win over some key opponents, while dividing and marginalizing others. Such political tactics made possible the rapid privatization of 14,000 state enterprises in 1992-1994 and the defeat of inflation in 1995. But failure to outmaneuver the new oligarchs and regional governors after 1996 undermined reformers' attempts to collect taxes and clean up the bureaucracy that has stifled business growth.Renewing a strain of analysis that runs from Machiavelli to Hirschman, the authors reach conclusions about political strategies that have important implications for other reformers. They draw on their extensive knowledge of the country and recent experience as advisors to Russian policymakers. Written in an accessible style, the book should appeal to economists, political scientists, policymakers, businesspeople, and all those interested in Russian politics or economics.

Liberal Reform in an Illiberal Regime

Liberal Reform in an Illiberal Regime
Author: Stephen F. Williams
Publisher: Hoover Institution Press Publi
Total Pages: 346
Release: 2006
Genre: Business & Economics
ISBN:

An examination of property rights reforms in Russia before the revolution reveals the advantages and pitfalls of liberal democracy in action--from a government that could be described as neither liberal nor democratic. The author analyzes whether truly liberal reform can be effectively established from above versus from the bottom up--or whether it is simply a product of exceptional historical circumstances.

Privatization and Transition in Russia in the Early 1990s

Privatization and Transition in Russia in the Early 1990s
Author: Carol Scott Leonard
Publisher: Routledge
Total Pages: 206
Release: 2013-06-19
Genre: Business & Economics
ISBN: 113502166X

Few economic events have caused such controversy as the privatization process in Russia. Some see it as the foundation of political and economic freedom. For others it was economics gone wrong, and ended in "Russians stealing money from their own country". As Russia reasserts itself, and its new brand of capitalism, it is ever more important that policy makers and scholars understand the roots of the economic structure and governance of that country; what was decided, who made the decisions and why, what actually transpired, and what implications this has for the future of Russia. This work, written by two senior advisors to the Russian government, has unique access to documentation, tracking the decision making process in the Russian Mass Privatization process. By close reference to events, and supplemented by interviews with many of the key participants, it shows that the policies adopted were often influenced and shaped by different forces than those cited by current popular accounts. The book challenges the interpretation of Russian privatization by some of the West’s most eminent economists. It underlines that economists of all schools, who bring assumptions from the West to the analysis of Russia, may reach false or misleading conclusions. It is an essential guide for anyone interested in Russian economic reform, and anyone who seeks to understand this enigmatic country, and its actions today.

Case-by-case Privatization in the Russian Federation

Case-by-case Privatization in the Russian Federation
Author: Harry G. Broadman
Publisher: World Bank Publications
Total Pages: 112
Release: 1998
Genre: Political Science
ISBN: 9780821342312

Since the advent of reform in 1992, the Russian authorities have made substantial strides toward creating a market economy through privatization. Recently, Russian authorities have established an institutional framework for a 'case-by-case' approach that ensures transparency and competition through the use of independent financial and other advisers. This paper contains the principal presentations made at a World Bank workshop on the lessons of international experience in case-by-case privatization.