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Original Articles

The Economy and the Prospects for Anti-democratic Development in Russia

Pages 1391-1416 | Published online: 02 Jul 2010

References

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  • and Weiss & Hobson, States and Economic Development …
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  • Bank of Finland Institute for Economies in Transition . 1997 . Russian and Baltic Economics--the Week in Review , : 51 – 52 . (e-mail version, http://www.bof.fi/bofit), and Russian Economy--the Month in Review, 1998, 2
  • V.V. Putin, 'Rossiya na rubezhe tysyachiletii', 1999, http://www.pravitelstvo.gov.ru/minister/article-vvp1.html.
  • Ibid.
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  • BBC Monitoring . 18 May 2000 . “ 'Russian Prime Minister Addresses State Duma prior to his Confirmation. Text of Report by Russia TV on 17th May' ” . In Johnson' s Russia List no. 4308 18 May ,
  • Bank of Finland Institute for Economies in Transition, Russian Economy--the Month in Review, 2000, 5, p. 2.
  • Hanson , S. and Kopstein , S. J. 1997 . 'The Weimar/Russia Comparison' . Post-Soviet Affairs , 13 ( 3 ) : 252 – 283 .
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  • Mann , M. 1988 . “ 'The Autonomous Power of the State: its Origins, Mechanisms and Results' ” . In States, War and Capitalism. Studies in Political Sociology Edited by: Mann , M. Oxford
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  • Blasi , J. , Kroumova , M. and Kruse , D. 1997 . Kremlin Capitalism. Privatizing the Russian Economy Ithaca Filatotchev et al., 'Privatization …'.
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  • 1999 . Voprosy ekonomiki , 11 : 24 – 48 .
  • Malleret , T. , Orlova , N. and Romanov , V. 1999 . 'What Loaded and Triggered the Russian Crisis?' . Post-Soviet Affairs , 15 ( 2 ) : 107 – 129 . Robinson, 'The Global Economy …'; Sapir, 'Russia's Crash …'
  • Gustafson , T. 1999 . Capitalism Russian-style 95 Cambridge
  • Ibid.
  • Brady , R. 1999 . Kapitalizm. Russia's Struggle to Free its Economy 135 – 143 . 206 – 207 . New Haven
  • Wolosky , L. 2000 . 'Putin's Plutocrat Problem' . Foreign Affairs , 79 ( 2 ) : 18 – 31 . For a discussion of how great profits have been made by Russian financial interests by their control of assets with high export earning potential see
  • Batyaeva , A. 1999 . 'Masshtaby neinvestirovaniya v rossiiskoi promyshlennosti' . Voprosy ekonomiki , 10 : 85
  • Loginov , V. 1997 . Ekonomicheskie reformy v Rossii: itogi pervykh let. 1991-1996 64 – 97 . Moscow
  • 1997 . 'Kontseptsiya srednesrochnoi programmy Pravitel'stva RF na 1997-2000 gody' . Voprosy ekonomiki , 1 : 4 – 68 .
  • Ibid., pp. 251-252
  • Ibid., pp. 255-257
  • Ibid., p. 259.
  • Evans , P. 1985 . “ 'Transnational Linkages and the Role of the State: an Analysis of Developing and Industrialized Nations in the Post-World War II period' ” . In Bringing the State Back in Edited by: Evans , P. , Rueschemeyer , D. and Skocpol , T. 205 Cambridge
  • R.W. Cox, Production, Power and World Order. Social Forces in the Making of World History New York 1987, p. 230.
  • Biersteker , T. 1990 . 'Reducing the Role of the State in the Economy: a Conceptual Exploration of IMF and World Bank Prescriptions' . International Studies Quarterly , 34 ( 4 ) : 477 – 492 .
  • Stepan , A. 1973 . “ 'The New Professionalism of Internal Warfare and Military Role Expansion' ” . In Authoritarian Brazil. Origins, Policies, and Future Edited by: Stepan , A. New Haven
  • Cardoso , F.H. 1973 . “ 'Associated-dependent Development: Theoretical and Practical Implications' ” . In Authoritarian Brazil. Origins, Policies, and Future Edited by: Stepan , A. New Haven Alternatively, as Cardoso labelled it, 'associated-dependent development' . See
  • Smith , W.C. 1989 . Authoritarianism and the Crisis of the Argentine Political Economy 33 Stanford
  • Caporaso , J.A. 1993 . “ 'Global Political Economy' ” . In Political Science: the State of the Discipline II , Edited by: Finiter , A.W. 470 Washington : DC . The idea of dependency has, of course, been subject to much criticism and has disappeared from the everyday language of social scientists to a considerable extent. This is not necessarily due to the cogency of the criticisms levelled against the idea of dependency. In the words of one commentator, it 'died out more from neglect than from frontal criticism'.
  • The hegemony of the more nebulous term globalisation may also have something to do with the declining use of the idea of dependency.
  • Woodruff , D. 1999 . Money Unmade. Barter and the Fate of Russian Capitalism 12 – 13 . Ithaca
  • Ledeneva , A. 1998 . Russia's Economy of Favours. Blat, Networking and Informal Exchange Cambridge
  • Robinson , N. 1998 . “ 'Corporate Interests and the Politics of Transition in Russia, 1991-1994' ” . In Privatization in Central and Eastern Europe , Edited by: Iatridis , D. and Hopps , J. Gary . Westport : CT .
  • Treisman , D. 1998 . 'Fighting Inflation in a Transitional Regime: Russia's Anomalous Stabilization' . World Politics , 50 ( 4 ) : 235 – 265 .
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  • European Bank for Reconstruction and Development . 1997 . Transition Report 1997. Enterprise Performance and Growth 26 London
  • Commander , S. and Mumssen , C. 1998 . “ 'Understanding Barter in Russia' ” . EBRD Working Paper, 37 London
  • European Bank for Reconstruction and Development . 1999 . Transition Report 1999. Ten Years of Transition 137 London Enterprises are less likely to use bank loans in the CIS area as a source of investment than in other transitional economies.
  • Goskomstat . 1998 . Rossiiskii statisticheskii ezhegodnik 696 Moscow Investment --in so far as it does occur--comes mainly from enterprises themselves rather than from private investors such as banks or investors in stocks and shares, with some residual investment from both central and local government.
  • Gaddy , C. and Ickes , B. 1998 . 'Russia's Virtual Economy' . Foreign Affairs , 77 ( 5 ) : 53 – 67 .
  • Woodruff , D. 1999 . 'It's Value that's Virtual: Bartles, Rubles, and the Place of Gazprom in the Russian Economy' . Post-Soviet Affairs , 15 ( 2 ) : 130 – 148 . Although this term has been criticised, it is a useful shorthand description of the Russian economy and captures something of the structural problems caused by particularistic exchange in Russia. It will therefore be used in this article for convenience, although, as Woodruff correctly points out, it should not be taken as having any ethical implications since these do not help analysis of the current Russian situation.
  • Sapir , J. 1999 . 'Russia's Crash of August 1998: Diagnosis and Prescription . Post-Soviet Affairs , 15 ( 1 ) : 1 – 36 .
  • Boeva , I. and Dolgopiatova , T. 1994 . “ 'State Enterprises during Transition: Forming Strategies for Survival' ” . In Economic Transformation in Russia Edited by: Aslund , A. 112 London There is some evidence that investment has at times taken place at levels appropriate for the structure of the economy. For example, Boeva & Dolgopiatova found that 'resources are generally spent on small items that give a large effect … these investments are too small to boost aggregate investment [but] they provide structural changes in production through changes in output mix'. See
  • Yu. Grigor'yan, 'Transnatsional' nye korporatsii v Rossii. Masshtaby i metody ekspansii', Svobodnaya mysl', 1997, 2, p. 24.
  • Westin , P. 1999 . 'Foreign Direct Investments in Russia' . Russian Economic Trends , 8 ( 1 ) : 36 – 43 . For a longer discussion of the patterns of FDI in Russia see Robinson, 'The Global Economy …';
  • Kuznetsov , A. 1994 . Foreign Investment in Contemporary Russia. Managing Capital Entry 112 – 114 . Basingstoke
  • 1998 . Russian Economic Trends , 7 ( 1 ) : 58
  • 1997 . Financial Times , 14 July
  • The number of foreign-owned banks in Russia is also very small. In 1998 only 29 out of 1476 banks were foreign-owned --a low figure by post-communist standards. For example, in Hungary 27 out of 40 banks were foreign-owned, in Estonia 2 out of 6, in Poland, 31 out of 83. See European Bank for Reconstruction and Development, Transition Report 1999 …, pp. 216, 228, 252 and 260.
  • Mozhin , A. 1993 . “ 'Russia's Negotiations with the IMF' ” . In Changing the Economic System in Russia Edited by: Aslund , A. and Layard , R. London
  • 1997 . Rossiiskii statisticheskii ezhegodnik 410 Moscow
  • 1998 . Rossiya v tsifrakh 332 Moscow
  • Iovchuk , S. and Kvashnina , I. 1996 . 'Inostrannye kapitalovlozheniya v Rossii: sostoyanie i perspektivy' . Voprosy ekonomiki , 12 : 112 – 120 .
  • It is difficult to estimate how much illegally exported capital returns to Russia from countries with consistent records of large-scale foreign investment activity in Russia such as the USA and Germany. However, the fact that favoured destinations for exported capital --for example, Cyprus, Switzerland and Luxembourg--are consistently high sources of foreign investment to Russia seems to indicate that some exported capital comes back into Russia as 'foreign' money, or is reinvested as profit by Russian-owned, foreign-registered front companies, to claim tax and other incentives. Robin-son, 'The Global Economy …', pp. 540-544. In 1998 Cyprus, Switzerland and Luxemburg were respectively the fifth, seventh and eighth largest investors in Russia. Rossiya v tsifrakh Moscow 1999, p. 347. In 1997 Switzerland was the third largest investor in Russia, ahead of Germany, and Cyprus the fifth largest investor, ahead of France and Japan. Rossiya v tsifrakh Moscow 1998, p. 337.
  • I. Filatotchev, M. Wright & M. Bleaney, 'Privatization, Insider Control and Managerial Entrenchment in Russia' Economics of Transition 7, 2, 1999, pp. 491, 494-496. Sales of stock are less favoured as a source of investment in general in the CIS than in Central Europe and the Baltic states. European Bank for Reconstruction and Development, Transition Report 1999 …, p. 137.
  • T. Dolgopyatova, 'Perekhodnaya model' povedeniya rossiiskikh promyshlennykh predpriyatii (po dannym empiricheskikh issledovanii 1991-1995)', Voprosy ekonomiki, 1996, 11, p. 126.
  • The rest of this paragraph draws on Robinson, 'The Global Economy …', pp. 534-535. Cf. Woodruff, Money Unmade …
  • Elster , J. , Offe , C. , Preuss , U. , Boenker , F. , Gottling , U. and Rueb , F. 1998 . Institutional Design in Post-communist Societies 25 Cambridge
  • Johnson , S. and Kroll , H. 1991 . 'Managerial Strategies for Spontaneous Privatization' . Soviet Economy , 7 ( 4 ) : 281 – 316 . For discussion of how resources were transferred see, inter alia
  • McAuley , M. 1992 . 'Politics, Economics and Elite Realignment in Russia: a Regional Perspective' . Soviet Economy , 8 ( 1 ) : 46 – 88 .
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  • O'Donnell . Bureaucratic Authoritarianism … . 15 – 21 .
  • Ibid., pp. 11-15; Cardoso, 'Associated-dependent Development …'; P. Evans, Dependent Development: the Alliance of Multinational Capital, State and Local Capital in Brazil Princeton 1979.
  • O'Donnell, Bureaucratic Authoritarianism …, p. 13; Cardoso, 'Associated-dependent Development …', p. 149.
  • M. McFaul, 'Authoritarian and Democratic Responses to the Financial Meltdown in Russia', Problems of Post-communism, 46, 4, 1999, p. 27. For a pre-August 1998 speculation on the political consequences of economic failure in Russia see 'Russia's crisis: could it lead to fascism?', The Economist, 11 July 1998.
  • S. Glaz'ev, Ekonomika i politika: epizody bor'by Moscow 1994; S. Peregrudov, I. Semenenko & A. Zudin, 'Business Associations in the USSR--and After. Their Growth and Political Role', PAIS Working Papers, 110, Coventry, 1992.
  • Rutland , P. 1999 . 'Mission Impossible? The IMF and Market Transition in Russia' . Review of International Studies , 25 : 194 special issue
  • Treisman, 'Fighting Inflation in a Transitional regime …'; Robinson, 'The Global Economy …', p. 550.
  • 1998 . European Bank for Reconstruction and Development, Transition Report 1998. Financial Sector in Transition 13 London
  • Organisation for Economic Co-operation and Development . 1997 . OECD Economic Surveys. Russian Federation 1997 59 Paris
  • 1997 . Financial Times , 17 March
  • 1997 . Financial Times , 29 December
  • 1998 . Russian Economic Trends , 7 ( 3 ) : 36 Many of the most significant defaulters on tax payments have been industries in the energy and petrochemical sectors controlled by FIGs, where enterprises have run up tax debts that are often much higher than the average for the industrial sector. See
  • Woodruff . Money Unmade … . 188

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