Restructuring, Stabilizing and Modernizing the New Russia

Russia has embarked upon a difficult process of systemic transformation and economic opening up. While the initial strong GDP decline seemed to have ended in 1997, the real development was facing even more difficult problems as output declined sharply after the Ruble and banking crisis of August 1998: inflation started to increase again, exports and imports were falling, capital flight increasing and unemployment rising. There is broad disappointment in Russia regarding the transformation failure in 1998 since so many people had hoped that the end of the Soviet command economy would bring democracy, prosperity and international integration. While Poland has been able to double per capita income in the 1990s it has fallen by 50% in Russia and this despite considerable IMF involvement and some (modest) support from other international organizations. What were the reasons for transformation failure in the 1990s? What are the ingredients for long term sustainable transformation? What are the internal and international requirements to avoid a second - possibly tragic - failure of transformation in Russia? An international group of researchers has focussed on these problems during a two-year research project financed by the Alfried Krupp von Bohlen und Halbach Foundation. A series of papers were presented at workshops in Potsdam, Bonn and Moscow in 1999 where this book is devoted to four important issues: the Russian transformation crisis, the topic of restructuring, the need for stabilizing Russia and the requirements for modernizing Russia.

Latest research results and economic policy issues on Russian transformation crisis From Russian and international experts

Autorentext
Paul J. J. Welfens, geb. 1957 in Düren, Studium der Volkswirtschaftslehre in Wuppertal, Duisburg und Paris, Promotion 1985, Habilitation1989. Inhaber des Lehrstuhls für Volkswirtschaftslehre - Schwerpunkt Makroökonomische Theorie und Politik an der Bergischen Universität Wuppertal; Präsident des Europäischen Instituts für Internationale Wirtschaftsbeziehungen (EIIW); Jean-Monnet-Professor für Europäische Wirtschaftsintegration; zuvor Distinguished Research Fellow am AICGS/The Johns Hopkins University, Professor an der Universität Münster bzw. Potsdam, Visiting Alfred Grosser Professor Sciences Po, Paris.

Klappentext

The Russian transformation crisis is analyzed and put into the context of national policy failures and international shocks. The study also has a focus on structural change and foreign direct investment - including an econometric perspective. Basic problems of economic opening-up, macroeconomic policy and aspects of political economy are also discussed. The role of institutional reforms, membership in international organizations and supply-side policies are emphasized.

Zusammenfassung
"...will become an authoritative reading because it constitutes an insightful background for the understanding of Russian economic performance during the last decade. An invaluable reference work for researchers." Bruno S. Sergi, University of Messina and CERC-University of Melbourne from Kyklos 54 (2001)

Inhalt
I The Russian Transformation Crisis.- A. The EU and Russia: Strategic Aspects of Transformation and Integration.- B. Currency Crisis Theories Some Explanations for the Russian Case.- C. Banking Sector and Financial Intermediation in the Russian Transformation Process.- D. Institutional Failures of Market Transformation of the Russian Economy.- E. Russian Crisis: Causes, Developments, Contagion and Prospects.- II Restructuring in Transition Economies.- F. Foreign Direct Investment in Russia: An Engine of Structural Adjustment?.- G. Russian Economy: Structural Change and Econometric Prospective.- H. Economic Opening-Up, Policy Reforms and Relations with International Organizations:A Parallel between Hungary and Russia - Some Major Differences and Similarities.- III Stabilizing Russia.- I. Towards Credible Monetary and Fiscal Policies in Russia.- J. Russian Capital Markets and International Financial Flows.- K. Consumer Prices in Russia and Transforming Official Statistics.- L. The Rationale for Seigniorage in Russia - A Model-Theoretic Approach.- M. Overcoming the Russian Banking Crisis: Theory, Some Empirical Findings and Policy Options.- IV Modernizing Russia.- N. Institutions and Transition: On the Way to a Market Economy Theory and Application to Russia.- O. Overcoming the Transformation Crisis - Selected Issues and Policy Options in Russia.- P. Nurturing Entrepreneurship and the Role of Co-operatives.- Q. Foreign Direct Investment and Growth in Russia, Poland and the Ukraine.- R. Reforming the Natural Monopoly - the Case of Railroad Transport.- V Economic Roundtable: Internal and External Russian Transition Problems.- S. Permanent Crisis in Russia: Selected Problems of Macroeconomic Performance.- T. Systemic Transformation in Russia: Outcomes, Causes, NewImperatives.- U. Official Statistics in Russia and the Measurement of the Crisis - Some Remarks on Russian Price Statistics.- V. Rent-seeking as a Source of Macroeconomic Instability in Russia.- W. Foreign Trade and Foreign Direct Investment in Transformation Crisis in Russia and Ukraine.- X. Appendix: Selected Macroeconomic Data on Russia and Eastern Europe.- Y. Selection of Links and Internet Pages of Research Institutions Related to Russia.- Z. About the Project: Real and Monetary Transformation Crisis in Russia: Developments, Analysis and Sustainable Transformation.- List of Tables.- List of Figures.- List of Contributors.