This paper is devoted to the explanation of selected bureaus’ behavior patterns in the soviet type of totalitarian dictatorships with the command economic model. It is a proven fact that the plan figures in the soviet economy were fabricated as a consequence of intrigues and secret negotiations between different interested parties. Generally, bureaus, as rational agents that minimize risk and maximize slack, should have been interested in reducing the plan figures, nevertheless, they strived to increase them. As examples, mass repression under dictatorships and overexpenditure of an administrative leverage at elections in non-democratic and quasi-democratic countries can be observed. In the article we develop a simple model of coordination between principal (dictator) and his agents (bureaus), which explain the mentioned paradoxical situation.
The Working Paper examines the peculiarities of the Russian model of corporate governance and control in the banking sector. The study relies upon theoretical as well as applied research of corporate governance in Russian commercial banks featuring different forms of ownership. We focus on real interests of all stakeholders, namely bank and stock market regulators, bank owners, investors, top managers and other insiders. The Anglo-American concept of corporate governance, based on agency theory and implying outside investors’ control over banks through stock market, is found to bear limited relevance. We suggest some ways of overcoming the gap between formal institutions of governance and the real life.