The problems of development of economic institutions in Russia

Abstract

Delayed payments of wages, defaults, hostile takeovers of privatized companies and similar actions caused a lot of problems in economic system of Russia. Notwithstanding the every effort taken by the government, the new model of economic management was inefficient until a cluster of complementary institutions was formed. Analysis of transformation processes in the Russian economy shows that the evolution of economic institutions has since the early 90s been a complicated, often inconsistent process, mainly directed towards internalization of informal institutions, import of institutions and restoration of institutions. The paper examines the evolution of economic institutions in Russia since the beginning of market reforms. The authors reveled the close relationship and direct correlation between the effectiveness of Russian economic reforms and forming the new economic institutions.