What does the Russian experience with reform teach us about transitions from state to market-based economies? Several scholars have argued that the reform program upon which Russia embarked in late 1991 was itself sound, but the problem was that the reforms were not implemented quickly or comprehensively enough–the medical advice was appropriate, but the patient, alas, was too incompetent or weak-willed to follow the advice of the doctors and take the medicine as prescribed. However, given the severity of the economic crisis in Russia, it behooves us to consider the argument that it was not the lack of implementation of reforms or a lack of speed that ruined the reform effort. Rather, the failure of Russian economic reform is the result of a fundamental misunderstanding of the nature of the post-socialist state, and a consequent inattention to the development of institutions necessary for supporting a market economy. In short, we gravely misunderstood the patient. […]
Memo #:
85
Series:
1
PDF:
PDF URL:
http://www.gwu.edu/~ieresgwu/assets/docs/ponars/pm_0085.pdf
