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Russia's Warped Transition: The Destructive Consequences of Ethically Unconstrained Utility Seeking

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  • Steven Rosefielde

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    (Department of Economics, University of North Carolina)

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    Abstract

    The Russian transition economy is best understood as a system that decriminalizes all power-seeking behaviors proscribed by textbook general competition. It is failing because the government sanctions oligopoly, monopoly, asset-grabbing, rent-seeking, elite misappropriation of state funds, the mis-administration of state assets, the mis-regulation of the private sector, and the forced suppression of competition. The efficiency losses caused by these abuses are examined in the factor, product, finance, distribution, and redistribution markets. The analysis suggests that the Russian economy won't recover until it empowers competitive efficiency and recriminalizes private and social exploitation.

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    Bibliographic Info

    Article provided by Eastern Economic Association in its journal Eastern Economic Journal.

    Volume (Year): 25 (1999)
    Issue (Month): 4 (Fall)
    Pages: 459-476

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    Handle: RePEc:eej:eeconj:v:25:y:1999:i:4:p:459-476

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    Cited by:
    1. Kenneth Koford, 2000. "Citizen Restraints on “Leviathan” Government: Transition Politics in Bulgaria," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 30-62.
    2. Lance Brouthers & Dana-Nicoleta Lascu & Steve Werner, 2008. "Competitive Irrationality in Transitional Economies: Are Communist Managers Less Irrational?," Journal of Business Ethics, Springer, Springer, vol. 83(3), pages 397-408, December.
    3. De Clercq, Dirk & Danis, Wade M. & Dakhli, Mourad, 2010. "The moderating effect of institutional context on the relationship between associational activity and new business activity in emerging economies," International Business Review, Elsevier, Elsevier, vol. 19(1), pages 85-101, February.
    4. Koford, Kenneth, 2000. "Citizen restraints on "Leviathan" government: transition politics in Bulgaria," European Journal of Political Economy, Elsevier, Elsevier, vol. 16(2), pages 307-338, June.

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