Review of Russia’s Crony Capitalism: The Path from Market Economy to Kleptocracy by Anders Åslund

Anders Åslund provides a comprehensive description of the main political and economic events of Vladimir Putin’s 20 years at the helm of the country. In politics, Åslund shows how Putin skillfully maneuvered to destroy democracy in Russia. I argue that the “cultural backlash” by older generations played perhaps an even more important role. I also show that the young generations hold rather liberal values, thus providing hope for the future. In economics, Åslund focuses on large state corporations, assets of Putin’s cronies, and macroeconomic policies, with only general statements about the country’s institutional weakness. I complement Åslund’s analysis by a more detailed examination of the impact of institutions and briefly survey fiscal federalism and informal economic activities—issues without which the workings of the Russian economy are hard to understand. (JEL D72, H77, O52, P26, P35)

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The specifics of shadow economic activity in Russia

Economic Analysis Theory and Practice ◽

10.24891/ea.19.10.1896 ◽

2020 ◽

Vol 19 (10) ◽

pp. 1896-1915

Author(s):

E.R. Ermakova ◽

O.M. Lizina

Keyword(s):

Economic Activity ◽

Shadow Economy ◽

Integrated Approach ◽

Economic Activities ◽

Reproductive Process ◽

Scientific Methods ◽

Current Period ◽

Russian Economy ◽

Analysis And Synthesis ◽

The Impact

Subject. The article addresses the specifics of shadow economic activities in reformed Russia in the context of systemic transformations. Objectives. We focus on determining the role of shadow economy in the reproductive process, identifying and understanding the specifics of underground economic activity of the Russian economy. Methods. The study rests on general scientific methods (scientific abstraction, unity of historical and logical, analysis and synthesis, induction and deduction, comparison and analogy) and special methods of cognition (monetary methods). We employ the systems and integrated approach. The official statistics, regulations, works of leading researchers on shadow economy expansion, resources of reference and legal systems like Garant and ConsultantPlus serve as the study's information base. Results. We present a retrospective rapid analysis of the extent of shadow economic activity in the domestic economy, establishing the relationships with the processes that take place at different stages of the country's development. We also reveal the specifics of shadow economy relations in Russia, factors that play a key role in expansion for a particular period, a shift to another form of shadow economy. The study characterizes the current period of development, assesses the impact of external shocks on shadow economy expansion. Conclusions. The current period is characterized by the digitization of shadow relations, the shift of corruption to the upper echelons of power, the continued outflow of capital abroad, and increased penalties for underground activities.

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ECONOMIC FLUCTUATIONS AND THE SHADOW ECONOMY: A GLOBAL STUDY

Global Economy Journal ◽

10.1142/s2194565920500153 ◽

2020 ◽

Vol 20 (03) ◽

pp. 2050015

Author(s):

CANH P. NGUYEN ◽

CHRISTOPHE SCHINCKUS ◽

DINH SU THANH

Keyword(s):

Capital Investment ◽

Shadow Economy ◽

Economic Fluctuations ◽

Economic Activities ◽

Macroeconomic Policies ◽

Middle Income ◽

Economic Instability ◽

Gdp Growth Rate ◽

Stabilizing Factors ◽

The Impact

The recent economic crisis re-emphasizes the importance of the economic fluctuations. This study investigates the role of shadow economy in combination with economic factors on the economic instability for 133 economies between 1991 and 2015. Using the system-GMM estimations, this paper shows that a larger shadow economy increases the fluctuations of GDP growth rate in relation to the size and the volatility of shadow economy. Notably, the shadow economy presents an inverted-U relationship with economic instability and this relationship is strongest for low- and lower-middle income economies. Our results identify two categories of drivers for economic fluctuations: the stabilizing factors (the labor force and the TFP) and the enhancing factors (capital investment, consumption, government spending, trade, and FDI inflows). Interestingly, exports increase economic fluctuations while imports decrease them. Finally, we discuss the differences in the determinants of economic instability across low, middle and high incomes countries. This study documented that shadow economy influences the economic fluctuations — our results actually confirm our hypothesis and the impact of shadow economy on the effectiveness of macroeconomic policies. The contribution of this paper is to show the extent to which the impact can affect the economic activities and how institutions can smooth this effect.

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Globalization

10.1093/oxfordhb/9780199669691.013.8 ◽

2017 ◽

Author(s):

Michel Goyer ◽

Miguel Glatzer

Keyword(s):

Political Economy ◽

Market Economy ◽

Economic Benefits ◽

Economic Liberalization ◽

Previous Model ◽

Economic Activities ◽

Economic Adjustment ◽

The Impact ◽

Institutional Foundations ◽

Liberal Market Economy

This chapter examines the impact, and political mediation, of globalization on the French political economy. There is little disagreement that globalizing forces are changing countries in a profound manner. Nowhere, however, has globalization generated such anxieties as in France, despite the economic benefits that it brings. This ambivalence highlights the importance of politics. First, rather than seeking to champion their actions, French policymakers, via their discursive framing, have presented economic liberalization as the unavoidable and distasteful consequence of globalization. Second, ambivalence toward globalization also illustrates the constraining legacy associated with the previous model of economic dirigisme. Coordination of economic activities around direct interactions between policymakers and executives of large companies served to overcome economic lags and social tensions, but stifled the development of the institutional foundations for either a coordinated or a liberal market economy—an important shortcoming for economic adjustment in the current economic environment.

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An interview with Madame Nguyen Minh Hoa: Vietnam's move to a market economy and the impact on women in the work place

PsycEXTRA Dataset ◽

10.1037/e573032011-002 ◽

1994 ◽

Author(s):

Linda K. Stroh ◽

Leslie E. Dennis

Keyword(s):

Market Economy ◽

Work Place ◽

The Impact

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The impact of economic crisis on mental and physical health in Italy

Die Psychiatrie ◽

10.1055/s-0038-1669560 ◽

2017 ◽

Vol 14 (02) ◽

pp. 103-110

Author(s):

S. Tomassi ◽

M. Ruggeri

Keyword(s):

Mental Health ◽

Physical Health ◽

Economic Crisis ◽

Social Determinants ◽

Great Recession ◽

Economic Recession ◽

Behavioural Disorders ◽

Economic Activities ◽

The Impact ◽

Mental And Physical Health

Summary Background: The global crisis that began in 2007 has been the most prolonged economic recession since 1929. It has caused worldwide tangible costs in terms of cuts in employment and income, which have been widely recognised also as major social determinants of mental health (1, 2). The so-called “Great Recession” has disproportionately affected the most vulnerable part of society of the whole Eurozone (3). Across Europe, an increase in suicides and deaths rates due to mental and behavioural disorders was reported among those who lost their jobs, houses and economic activities as a consequence of the crisis.

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Impact of external currency exposures on macroeconomic policies

Voprosy Ekonomiki ◽

10.32609/0042-8736-2020-8-23-40 ◽

2020 ◽

pp. 23-40

Author(s):

I. V. Prilepskiy

Keyword(s):

Monetary Policy ◽

Exchange Rate ◽

Positive Impact ◽

Exchange Rate Regime ◽

Macroeconomic Policies ◽

Panel Regressions ◽

Financial Account ◽

Currency Exposure ◽

Cross Country ◽

The Impact

Based on cross-country panel regressions, the paper analyzes the impact of external currency exposures on monetary policy, exchange rate regime and capital controls. It is determined that positive net external position (which, e.g., is the case for Russia) is associated with a higher degree of monetary policy autonomy, i.e. the national key interest rate is less responsive to Fed/ECB policy and exchange rate fluctuations. Therefore, the risks of cross-country synchronization of financial cycles are reduced, while central banks are able to place a larger emphasis on their price stability mandates. Significant positive impact of net external currency exposure on exchange rate flexibility and financial account liberalization is only found in the context of static models. This is probably due to the two-way links between incentives for external assets/liabilities accumulation and these macroeconomic policy tools.

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A view at the Russian economic transformation

Voprosy Ekonomiki ◽

10.32609/0042-8736-2018-11-142-158 ◽

2018 ◽

pp. 142-158 ◽

Cited By ~ 2

Author(s):

E. F. Baranov ◽

V. A. Bessonov

Keyword(s):

Market Economy ◽

Growth Rates ◽

Transition Process ◽

Well Being ◽

Economic Transformation ◽

High Rate ◽

Russian Economy ◽

Stage Of Development ◽

Qualitative Level ◽

Rate Of Recovery

The transition of the Russian economy from plan to market is considered at a qualitative level. The analysis of economic dynamics in the transformation paradigm is conducted. The main stages of the transition process are discussed. Bonuses and costs due to the transition to market economy are considered. The reasons for the outstripping growth of well-being as compared to the growth of output are discussed. The signs of exhaustion of the potential of factors ensuring an abnormally high rate of recovery and accompanying welfare growth are discussed. The conclusion is made that the transformational recovery has been completed. The Russian economy has moved to the stage of development with relatively low growth rates of output and welfare, typical for stable (nontransition) economies.

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Russia’s fiscal stimulus and fiscal sustainability

Voprosy Ekonomiki ◽

10.32609/0042-8736-2013-10-90-108 ◽

2013 ◽

pp. 90-108 ◽

Cited By ~ 2

Author(s):

N. Akindinova ◽

N. Kondrashov ◽

A. Cherniavsky

Keyword(s):

Government Spending ◽

Public Expenditure ◽

Oil Prices ◽

Fiscal Sustainability ◽

Macroeconomic Model ◽

Sharp Drop ◽

Fiscal Stimulus ◽

Fiscal Multipliers ◽

Russian Economy ◽

The Impact

This study examines the impact of public expenditure on economic growth in Russia. Fiscal multipliers for various items of government spending are calculated by means of our macroeconomic model of the Russian economy. Resources for fiscal stimulus and optimization are analyzed. In this study we assess Russia’s fiscal sustainability in conditions of various levels of oil prices. We conclude that fiscal stimulus is ineffective in Russia, while fiscal sustainability in conditions of a sharp drop in oil prices is relatively low.

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TRANSFER FİYATLAMA UYGULAMASININ İŞLETME PERFORMANSINA ETKİSİ VE VERGİSEL AÇIDAN DEĞERLENDİRİLMESİ

Business And Management Studies An International Journal ◽

10.15295/bmij.v1i2.63 ◽

2014 ◽

Vol 1 (2) ◽

pp. 187

Author(s):

Serdar KUZU

Keyword(s):

Business Performance ◽

Transfer Pricing ◽

Tax Law ◽

Economic Activities ◽

Tax System ◽

Goods And Services ◽

Tax Legislation ◽

International Transactions ◽

The Cost ◽

The Impact

The size of international trade continues to extend rapidly from day to day as a result of the globalization process. This situation causes an increase in the economic activities of businesses in the trading area. One of the main objectives of the cost system applied in businesses is to be able to monitor the competitors and the changes that can be occured as a result of the developments in the sector. Thus, making cost accounting that is proper according to IAS / IFRS and tax legislation has become one of the strategic targets of the companies in most countries. In this respect, businesses should form their cost and pricing systems according to new regulations. Transfer pricing practice is usefull in setting the most proper price for goods that are subject to the transaction, in evaluating the performance of the responsibility centers of business, and in determining if the inter-departmental pricing system is consistent with targets of the business. The taxing powers of different countries and also the taxing powers of different institutions in a country did not overlap. Because of this reason, bringing new regulations to the tax system has become essential. The transfer pricing practice that has been incorporated into the Turkish Tax System is one of the these regulations. The transfer pricing practice which includes national and international transactions has been included in the Corporate Tax Law and Income Tax Law. The aim of this study is to analyse the impact of goods and services transfer that will occur between departments of businesses on the responsibility center and business performance, and also the impact of transfer pricing practice on the business performance on the basis of tax-related matters. As a result of the study, it can be said that transfer pricing practice has an impact on business performance in terms of both price and tax-related matters.

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