80 research outputs found
Banking Reform in Russia: Problems and Prospects
This paper examines the state of the Russian banking sector in 2004 and assesses the most important
reform initiatives of the last two years, including deposit insurance legislation, a major reform of the
framework for prudential supervision, steps to increase transparency in the sector, and measures to
facilitate the development of specific banking activities. The overall conclusion that emerges from this
analysis is that the Russian authoritiesâ approach to banking reform is to be commended. The design of the
reform strategy reflects an awareness of the need for a âgood fitâ between its major elements, and the main
lines of the reform address some of the principal problems of the sector. The major lacuna in the Russian
bank reform strategy concerns the future of state-owned banks. Despite a long-standing official
commitment to reducing the role of the state â and of the Bank of Russia in particular â in the ownership of
credit institutions, there is still a need for a much more clearly defined policy in this area. The real test of
Russian banking reform efforts, however, will be in implementation. The reforms challenge numerous
vested interests and their successful realisation will require considerable political will as well as the
development of regulatory capacities of a very high order
From âClientelismâ to a âClient-centred orientationâ? The challenge of public administration reform in Russia
The inefficiency, corruption and lack of accountability that afflict public administration in Russia impose substantial direct costs on both entrepreneurs and ordinary citizens. This paper examines the major weaknesses of Russiaâs public administration and assesses the governmentâs recently revised programme of administrative reform. It lays particular stress on the relationship between public bureaucracies and the larger institutional environment within which they operate, as well as on the need for far greater transparency of public bodies and stronger non-judicial means of redress for citizens wishing to challenge bureaucratic decisions. Many of the problems of Russiaâs public administration are aggravated by the fact that the Russian state often tries to do too much: the paper therefore explores the link between administrative reform and the scope of state ownership and regulation
Caspian oil in global context
This paper provides a brief overview of the political economy of Caspian oil. It begins by situating the Caspian regionâs oil sectors in the larger global market, before proceeding to examine the ways in which the Azerbaijani, Turkmen and Kazakh oil sectors have been organised and governed since 1991. The paper then considers the likely consequences of recent policy shifts in Kazakhstan, the regionâs most important oil producer. A further section considers the questions of transport infrastructure and export routes, which remain particularly complex problems for Central Asiaâs landlocked producers. This is followed by a brief conclusion. The paperâs central argument is that it is by no means certain that the Caspian regionâs hydrocarbon potential will be developed in a timely, economically efficient way
Possible Russian development paths and their implications for Europe: some back-of-the-envelope musings
This chapter examines the potential implications for the European Union and for EU-Russian relations of recent developments in Russian economic policy. Its principal argument may be stated simply. A number of changes in Russian economic policy during 2003â05 augur ill for both the further growth of its core resource-exporting sectors (especially oil and gas) and the further diversification of its production and export structure. On both counts, this is bad news for European Union member states. Europe has an obvious interest in the successful development of Russiaâs resource sectors. It also has a less obvious, but no less compelling, interest in the evolution of Russiaâs production and export structure in the direction of greater diversification and increased production of services and more sophisticated manufactures
Restructuring Russia's Electricity Sector: Towards Effective Competition or Faux Liberalisation?
Russia in 2003 embarked on the restructuring of its electricity sector. The reform is intended to
introduce competition into electricity production and supply, leaving dispatch, transmission and
distribution as regulated natural monopolies with non-discriminatory third-party access to the networks.
The ultimate aim of the reform is to create conditions that will encourage both investment in new capacity
and greater efficiency of both production and consumption. The overall approach embodied in the reform
is promising. However, there remains a serious risk that its aims could be subverted by special-interest
lobbying during the lengthy implementation phase. If the reform is to succeed, the marketised segments of
the sector must be characterised by real competition based on economically meaningful prices. There are
two dangers here. The first is that private-sector interests will secure strategic holdings that allow them to
exercise market power or even local monopoly power. The second is that, even after the wholesale market
is liberalised, the state will retain considerable capacity to hold down electricity prices, if it so chooses, and it could do so in ways that unduly distort the signals the market is sending and deter the very investment
that the reform is meant to attract
Healthcare reform in Russia: problems and prospects
This paper examines the prospects for reform of Russiaâs healthcare system. It begins by exploring a number of fundamental imbalances that characterise the current half-reformed system of healthcare provision before going on to assess the governmentâs plans for going ahead with healthcare reform over the medium term. The challenges it faces include strengthening primary care provision and reducing the current over-reliance on tertiary care; restructuring the incentives facing healthcare providers; and completing the reform of the system of mandatory medical insurance
Back to the future? Thoughts on the political economy of expanding state ownership in Russia
The period since early 2004 has a significant expansion of the direct role of the Russian state in owning and managing industrial assets, particular in âstrategic sectorsâ of the economy, such as power-generation machines, aviation, oil and finance. Increasingly, policy seems to have been focused less on market reforms than on tightening the stateâs grip on the âcommanding heightsâ of the economy. Many factors contribute to this shift â factional, ideological, geopolitical and conjunctural â and, as will be argued below, there is not one single process at work, but several. This chapter seeks to understand what has been driving the expansion of state ownership in Russia over the recent past and what that expansion might imply for the future. Its central conclusion is that a great deal of the explanation for this trend is in fact structural. While press coverage and public discussion have largely focused on factional politics and the political conjuncture â particularly conflicts between the Kremlin and big business and rivalry among Kremlin âclansâ ahead of the Putin succession in 2008 â a deeper understanding of the growth of the state requires an examination of the interaction between state capacities and Russiaâs industrial structure
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