Since the inception of market reforms until the present day Russian institutions have been shaped primarily by economic and political elites, with minimal involvement of the rest of the society in this process. Outcomes of such “institutional outsourcing” for the society depend on the affinity between elites’ preferences and societal needs. Low quality of Russian institutions is explained in the paper by a substantial conflict of interests between the society and unaccountable elites. Prospects of Russian modernization are thus contingent on the accumulation of civic culture and more effective representation of the society in the process of institutional change.
The paper contains an analysis of advantages and disadvantages of oil service outsourcing for national oil and gas industry. It is demonstrated that the dependence on foreign oil service providers may lead to technological obsolescence of national oil and oil service industries and enables foreign operators to regulate implicitly the effectiveness of the national economy. It is shown that the dependence of Russian oil companies on foreign oil service providers in 2014 is not corporate, but sectoral. This fact, due to high importance of oil and gas industry, produces high risks for Russia’s economy in general. Main ways of development of the Russian oil service industry under sectoral sanctions are described
The article looks into the spillover effect of the sweeping overhaul of financial regulation, also known as Basel III, for credit institutions. We found that new standards of capital adequacy will inevitably put downward pressure on ROE that in turn will further diminish post-crisis recovery of the banking industry. Under these circumstances, resilience of systemically important banks could be maintained through cost optimization, repricing, and return to homogeneity of their operating models, while application of macroprudential regulation by embedding it into new regulatory paradigm would minimize the effect of risk multiplication at micro level. Based on the research we develop recommendations for financial regulatory reform in Russia and for shaping integrated banking regulation in the Eurasian Economic Union (EAEU).
The authors estimate the short-term and long-term relationship GDP- unemployment (employment). These are the first reliable and robust confirmations of Okun's law validity for Russia. It has been shown that the reaction of unemployment to output decline is much stronger than the response to output growth of the same size. Cross-country comparisons give evidence that Okun's coefficient for Russia is slightly inferior to the same indicator for most developed countries, but is similar to coefficients found for other emerging markets.
The article aims to analyze the influence of different types of corruption on inflation in case of independent Central Bank and, therefore, absence of seignorage. Basing on fiscal and monetary policymakers behavior, we use simple model to analyze the joint impact of “grand” and “petty cash” corruption on the Central Bank optimal inflation rate. Research offers a slightly different view on the corruption-inflation relationship and concludes that different forms of heterogeneous corruption affects inflation in various ways both directly and indirectly.
The transition of the Russian economy from plan to market is considered at a qualitative level. The analysis of economic dynamics in the transformation paradigm is conducted. The main stages of the transition process are discussed. Bonuses and costs due to the transition to market economy are considered. The reasons for the outstripping growth of well-being as compared to the growth of output are discussed. The signs of exhaustion of the potential of factors ensuring an abnormally high rate of recovery and accompanying welfare growth are discussed. The conclusion is made that the transformational recovery has been completed. The Russian economy has moved to the stage of development with relatively low growth rates of output and welfare, typical for stable (nontransition) economies.
Based on the trade statistics of Russia and Ukraine, the author shows the role of transnational corporations in the dynamics of economic relations of the two countries, including the cross-industry analysis.