Abstract
Foreign capital inflows have been an important though not always an indispensable element in the development of the societies great and small which have industrialized successfully. This chapter attempts to provide a framework for the country-specific papers which follow, and draws on some of their commentary on the background to and possible role of external investment in the Soviet successor states.
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Notes
Western economists who tried to stick to an honest interpretation of the biased and often deliberately misleading statistical and other facts available could not unambiguously demonstrate what most of them none the less suspected.
Except Stockbuilding. Monopoly enterprises, protected by inflationary credit expansion and subsidies, apparently continued to produce quantities of unsaleable goods.
January–June 1993 data from the CIS Statistical authority show a further 7 per cent decline compared with the same period of 1992, and by August this was estimated at 54 per cent of 1990 levels on an annual basis and about the same volume as in 1974 (see Statistical Committee of the Commonwealth of Independent States, Statisticheskii byulleten, Moscow 1993, no. 14, p. 18, and no. 16, p. 7). In Russia, the decline between the first halves of 1992 and 1993 was 6 per cent rising to 12 per cent between the first three quarters of those two years (see Russian Federation State Committee for Statistics, O razvitii ekonomicheskikh reform, Moscow, Jan.–Jun. 1993, p. 56 and Jan.–Sep. 1993, p. 65).
See R.W. Davies, The Soviet Economy in Turmoil 1929–1930 (London: Macmillan, 1989) pp. 33–4.
See H. Wienert and J. Slater: East-West Technology Transfer, the Trade and Economic Aspects (Paris: OECD, 1986) pp. 18–30.
As in the 1960s in the Netherlands when the Slochteren gas field came on stream, it could prove difficult for the fuel-producing successor states to avoid an unwelcome currency revaluation at some stage, given the high share of fuel in their total exports; in Russia, fuel accounted for about 52 per cent in the first half of 1993, despite a fall in prices compared with year-earlier levels. It should also be noted that so far the fall in the external value of the rouble in 1992–3 had no obvious incentive effect on non-fuel Russian exports which, apart from aluminium and a very few other items, fell substantially between 1992 and 1933.
Real monthly interest rates changed from −20 per cent in the first quarter of 1992 to about −2 per cent in July–September of the same year. In the final quarter they were still negative (−4 per cent) in June 1993. See Russian Economic Trends, vol. 2, no. 2 p. 21 (Table 13) (London: Whurr Publishers, 1993).
United Nations Economic Commission for Europe (UN/ECE) East-West Investment News, no. 2 (Summer 1993) p. 15.
UN/ECE Secretariat. Not all commitments are actually disbursed and follow-up disbursements are not always included.
UN/ECE Statistical Survey of Recent Trends in Foreign Investment in East European Countries, Committee on the Development of Trade, Document TRADE/R.588 (9 Nov. 1992) pp. 23 and 26.
UN/ECE, East-West Investment News, no. 1 (Spring 1993) pp. 21–28.
For a discussion of the negotiations concerning the exploitation of the Shtokmanovskii oilfield in 1992 and 1993, see Chapter 5, on Russia.
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© 1996 Patrick Artisien-Maksimenko and Yuri Adjubei
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Slater, J. (1996). Foreign Direct Investment in the Transition to a Market Economy. In: Artisien-Maksimenko, P., Adjubei, Y. (eds) Foreign Investment in Russia and Other Soviet Successor States. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-24892-6_1
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