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Competitiveness and adjustment of the Russian economy: macro and by sectors dimensions

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Fig. 1
Fig. 2

Notes

  1. In fact, many companies can develop market relations and use cash, depending on the nature of the technology, their product and the size of their market. A company producing final goods, selling to households in a limited market can more easily use cash for its transactions, for instance in the food industry (Interview with the director of the company Red October producing chocolate).

  2. For example, big car companies have to manage social assets (buildings for workers, health services), which are deterrent to the entry of foreign investors, not willing to control these assets. In a depressed economic environment, these big enterprises are still considered as strongholds by both municipalities and provincial governors and have to perform social and public services. AvtoVAZ, for instance, still finances public services that the municipality where the company is located is unable to perform, such as paying policemen.

  3. There has been four stages in the concentration of ownership in Russia ; - 1st stage: mass privatizations of asset companies in 1992–1994: 50% sold to workers, 9% to managers, 41% remained in the state hands or were sold to outside shareholders. - 2nd stage: “internal redistribution”: managers buy shares cheaply from workers, often with the company’s funds - 3rd stage: “Loans for shares” deal, 1995–1996: the Russian government allowed a small number of financiers – the oligarchs - to buy the state’s biggest oil and mining companies at a low price. The aim was to create a business elite to support the re-election of president Yeltsin. - 4th stage: After Russia’s default and the devaluation of August 1998, foreign investors and Russians banks sold their shares in Russian companies. The oligarch who controlled the export of oil and other natural resources had the cash to buy those assets at a very low price.

  4. The export taxes could play a positive function in the short to medium-term perspective (redistribution of the rent, support for domestic production) as long as they are expected to disappear.

  5. For details of appraisal of competition using business surveys, see papers by S. Tsukhlo (IET) and S. Aukutsionek (Russian Economic Barometer, REB).

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Authors and Affiliations

  1. University of Savoie, Centre IREGE, rue Marcoz, 73000, Chambéry, France

    Eric Brunat

  2. Jean Monnet Chair, Université Paris III, Sorbonne Nouvelle, 13 rue de Santueil, 75005, Paris, France

    Xavier Richet

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  1. Eric Brunat
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Correspondence to Xavier Richet.

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Brunat, E., Richet, X. Competitiveness and adjustment of the Russian economy: macro and by sectors dimensions. Econ Change 40, 65–89 (2007). https://doi.org/10.1007/s10644-007-9010-8

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