Exporting American Economic Development Practice To Russia

The failure of US initiatives to build local/regional economic development capacity in Russia following the fall of Communism has been partly blamed on national factors, Russian culture, and American consultants. Much of the failure, however, probably resulted because American approaches to economic development—‐highly successful in other contexts—could not work during Russia's transition from a command economy to its current state. Such things as promoting entrepreneurship, developing public‐private partnerships, creating a market economy, accessing start‐up capital, attracting foreign investment, overcoming bureaucratic corruption and high taxation, working within the rule of law, and negating organized crime either should not have been done, or could not have been done, leaving many of our programs ineffective. We ask whether the Russian deviations from the U.S. model have any implications for the current situation facing state and local development policy in the U.S.