Training Strategies and Skill Development Amid Weak Institutions: Evidence from Russia
The paper outlines a link between two theoretical perspectives on the prerequisites of high institutional quality and long run growth. One framework is based on the trade-off between disorder and dictatorship and introduces the notion of the institutional possibility frontier (IPF). The idea of IPF implies that social institutions can be situated on the continuum between two extrema of dictatorship and disorder; each point on the continuum has an associated level of social losses. It is implied that the dictatorship-disorder trade-off is more severe in some societies than in others. The other theoretical perspective focuses upon the role of total factor productivity (TFP) as a parameter underlying long run growth (TFP can be represented as a parameter A in the Cobb-Douglas function). It is possible to associate different social groups with different productivity factors in the Cobb-Douglas function and, further, with different institutional preferences on the dictatorship-disorder continuum. As a result, the linkage between TFP and IPF emerges and the effects of TFP can be interpreted in the framework of the IPF theory. The formalization of the linkage between two theoretical perspectives is presented in outline and it is shown that high TFP can mitigate the trade-off between dictatorship and disorder. The second part of the paper contains a tentative empirical analysis of the link between TFP and major institutional characteristics. It is demonstrated that this link is present and has from medium to high strength. An interesting innovation concerns the method of estimating TFP. By and large, the paper sheds some light on the nature of TFP and designates directions for further research on the fundamental conditions for high-quality development.
The article discusses a recent antitrust case brought against Russian manufacturers of large diameter pipes (LDPs) that aimed to investigate supposed collusive practices that contradicted the law ‘On the Protection of Competition’, which prohibits market sharing and restricting production.The Russian competition agency (FAS) confirmed the infringement under Article 11 of the law ‘On the Protection of Competition’, but at the same time exempted companies from liability under Article 13, which allows applying rule of reason to agreements which promote efficiency.We presume the infringement charge was based on weak substantial evidence standards. The case under consideration illustrates the importance of investigating the institutional details when qualifying the actions of market participants and their effects.The analysis of the evidence in this case indicates that the nature of cooperation between pipe manufacturing companies and OJSC Gazprom, namely indicative planning, may be explained from the perspective of reducing contract risk in an environment characterized by large-scale investment.
Does public investment in educational innovations makes sense? Is there a tangible return on investment in innovations, either public or private? We know for certain that investments in expanding the existing modes of education do pay off (Becker 2009). But does it make sense to invest in innovation? This chapter will consider available evidence on impact of educational innovation, primarily at K-12 level. It will also demonstrate the need to conceptualize the impact of innovation. Work conducted within the next generation of educational reform should look very different from what we have done so far.
The article is devoted to the study of the authoritarianism prevalent in the mass consciousness of Russians. The article describes a new approach to the consideration of the authoritarian syndrome as the effects of the cultural trauma as a result of political and socio-cultural transformation of society. The article shows the dynamics of the symptoms of the authoritarianism, which appear in the mass consciousness of Russians from 1993 to 2011. This paper proposes a package of measures aimed at reducing the level of the authoritarianism in Russian society.
This work looks at a model of spatial election competition with two candidates who can spend effort in order to increase their popularity through advertisement. It is shown that under certain condition the political programs of the candidates will be different. The work derives the comparative statics of equilibrium policy platform and campaign spending with respect the distribution of voter policy preferences and the proportionality of the electoral system. In particular, it is whown that the equilibrium does not exist if the policy preferences are distributed over too narrow an interval.
The article examines "regulatory requirements" as a subject of state control over business in Russia. The author deliberately does not use the term "the rule of law". The article states that a set of requirements for business is wider than the legislative regulation.
First, the article analyzes the regulatory nature of the requirements, especially in the technical field. The requirements are considered in relation to the rule of law. The article explores approaches to the definition of regulatory requirements in Russian legal science. The author analyzes legislation definitions for a set of requirements for business. The author concludes that regulatory requirements are not always identical to the rule of law. Regulatory requirements are a set of obligatory requirements for entrepreneurs’ economic activity. Validation failure leads to negative consequences.
Second, the article analyzes the problems of the regulatory requirements in practice. Lack of information about the requirements, their irrelevance and inconsistency are problems of the regulatory requirements in Russia.
Many requirements regulating economic activity are not compatible with the current development level of science and technology. The problems are analyzed on the basis of the Russian judicial practice and annual monitoring reports by Higher School of Economics.
Finally, the author provides an approach to the possible solution of the regulatory requirements’ problem. The author proposes to create a nationwide Internet portal about regulatory requirements. The portal should contain full information about all regulatory requirements. The author recommends extending moratorium on the use of the requirements adopted by the bodies and organizations of the former USSR government.