Abstract
The legacies of the Soviet command economy as manifested in the nature, structure, and functioning of economic governance in contemporary Russia are visible aspects of the economic transition that Russia has undergone since 1991. The radical reforms of the 1980s and of the 1990s and their dramatic consequences on the economic evolution of Russia have been discussed in this chapter. The chapter also attempts to analyze the complex processes of transition and their implications for Russia’s economic future. The structural challenges faced by the Russian economy and the policies adopted by the political leadership have also be discussed.
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Notes
- 1.
As the economy was suffering from high inflation and large budget deficits, the undertaking of stabilization measures was at this point considered to be not only important from an economic point of view but also consequently as a springboard for furthering liberalization and privatization.
- 2.
These policies fell in line with the “shock therapy,” strategy in which a country switches over quickly to a market economy employing price liberalization, budgets stabilization, ending subsidies and privatizing industry. The primary aim of these policies was to transform the economy as quickly as possible to a market economy. Under this strategy, Yeltsin phased out state subsidies, freed prices, reduced government spending and privatized state businesses. Control over the rouble was relinquished, and prices was freed.
- 3.
OPORA is a non-governmental association of entrepreneurs and representative from industry unions. ‘OPORA RUSSIA’ is a platform for an effective professional dialogue between owners and managers of small and medium-sized enterprises and representatives of federal, regional and local executive bodies as well as representatives of the expert community.
- 4.
Power vertical is a concept used to describe the top down command structure established by Putin. In Russia, it has primarily manifested in the re-centralization of the power of the presidency and the federal centre and has resulted in ‘loyal figures’ being appointed to important positions to implement policy decisions.
- 5.
The Yukos affair stated in October 2003 with the arrest of Mikhail Khodorkovsky, the CEO of one of Russia’s largest oil company for tax evasion and financial fraud. The Yukos case signalled that the days of Wild West capitalism was over and the state was keen to asserted itself in business, especially in the energy sector through the imposition of rules and control.
- 6.
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Asghar, T. (2021). Soviet Legacies and Economic Governance in Contemporary Russia. In: Chenoy, A.M., Upadhyay, A. (eds) Hundred Years of the Russian Revolution. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-33-4785-4_16
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