Is Russia Restructuring

Considers the achievements and challenges facing East Asia's workers. The report reviews labor outcomes and evaluates the benefits of rapid growth to workers and the impact that the region's role in the global economy has had on them. It also examines labor market policies and institutions in the region, labor in the transition economies, and the outlook for East Asian workers in the 21st century. Also available: World Development Report 1995: Workers in an Integrating World Stock no. 61102 (ISBN 0-19-521102-2).

The authors explore the labor dynamics of Russian enterprise restructuring, empirically assessing how patterns of job creation and destruction are related to various aspects of enterprise restructuring across firms in different sectors and regions, and to different forms, sizes, vintages, and performance characteristics of ownership. Evidence from case studies - based on more than 50 site visits in 2000 - suggests that jobs have been destroyed, but only to a limited degree in some sectors and regions, largely because of institutional and incentive constraints and a still-widespread "socialist" corporate culture. Jobs have been created - particularly in sectors where devaluation had the most pronounced effect on important substitution and export promotion - but only slowly, mostly for lack of skilled workers and because regional mobility is limited. Labor turnover appears higher within regions than across regions. Newly available data for 1996 - 99 (provided by Goskomstat) for about 128,000 enterprises in 24 industrial sectors in Russia's 89 regions indicates that the typical firm has experienced only modest downsizing - about 12 percent - in number of employees. Smaller firms have entered, and larger, mature businesses have exited some sectors. Except for a lull in 1998, the rate of job creation has steadily increased and the rate of job destruction has declined, dropping substantially in 1998 - 99. "Voluntary" worker separations remain the main - and growing - form of layoff, and the proportion of layoffs through redundancies is shrinking (now about 4 percent of total separations). Firm size and net employment growth are not statistically related, but form of ownership seems to matter. Firm size is also statistically correlated (positively) with profitability, but restructuring through changes in net employment growth appears not to be. It seems Russian restructuring needs to become more efficient.

Russia has embarked upon a difficult process of systemic transformation and economic opening up. While the initial strong GDP decline seemed to have ended in 1997, the real development was facing even more difficult problems as output declined sharply after the Ruble and banking crisis of August 1998: inflation started to increase again, exports and imports were falling, capital flight increasing and unemployment rising. There is broad disappointment in Russia regarding the transformation failure in 1998 since so many people had hoped that the end of the Soviet command economy would bring democracy, prosperity and international integration. While Poland has been able to double per capita income in the 1990s it has fallen by 50% in Russia and this despite considerable IMF involvement and some (modest) support from other international organizations. What were the reasons for transformation failure in the 1990s? What are the ingredients for long term sustainable transformation? What are the internal and international requirements to avoid a second - possibly tragic - failure of transformation in Russia? An international group of researchers has focussed on these problems during a two-year research project financed by the Alfried Krupp von Bohlen und Halbach Foundation. A series of papers were presented at workshops in Potsdam, Bonn and Moscow in 1999 where this book is devoted to four important issues: the Russian transformation crisis, the topic of restructuring, the need for stabilizing Russia and the requirements for modernizing Russia.

A dynamic market - one th ...

The massive economic transformations and political upheavals that have been sweeping China and the Soviet Union in the final decades of the twentieth century are among the great dramas of our time. Yet the origins of these revolutionary changes are murky and their outcomes unclear. Have we witnessed the demise of an archaic authoritarian order and the rise of pluralism and democracy, or are the tumultuous events of the post-Mao era and the period of perestroika more usefully viewed in light of broader patterns of power and politics in Chinese and Russian history? Considering these questions with a new interpretation of power relations and political processes in China and Russia, Mark Lupher explores the imperial era, the communist period, and the current situation in both countries. Rather than speaking of “reform,” which too often is understood as liberalization along Western lines, his discussion is focused on power restructuring—the ebb and flow of state power; the centralization and decentralization of political and economic power; and the three-way struggles between central rulers, various elites, and nonprivileged groups that drive these processes. Lupher’s power-restructuring analysis is noteworthy in combining broad comparative-historical analysis and conceptualization with a closely focused discussion and reinterpretation of the Chinese Cultural Revolution—the core of his book. By comparing and bringing new light to bear on a series of pivotal episodes in Chinese and Russian history, he furthers our understanding and assessment of processes that will continue to unfold in China, Russia, and the former Soviet republics.

This book tells the story of what might have been considered an unlikely source of dynamic change in Russia - formerly state-owned manufacturing enterprises and their managers. Based on interviews conducted over a six-year span with managers at 47 manufacturing, light industry, consumer durable, and food processing firms in four Russian cities, the study documents the real world challenge of turning hidebound, often dysfunctional manufacturing operations into thriving companies. With analytical rigor and theoretical creativity, this work will dispel some common misconceptions about the Russian economy and make a contribution to the literature about management, company strategies, and corporate governance.

At the invitation of the regional authorities, the OECD organised a conference in Tomsk on a regional approach to industrial restructuring in June 1997. This report presents the economic assessment, conference conclusions and recommendations.

Since the fall of the Soviet Union in 1991, the question of 'whither Russia?' has been the source of ceaseless speculation both at home and abroad. In search of answers, twelve highly qualified scholars examine the complex interplay between continuity and change that has marked developments in Russia under the leadership first of Boris Yeltsin and now of Vladimir Putin. Analsying the recent past, they also peer into the country's future. In his introduction to the volume Peter Rutland asks whether we are witnessing the gradual entrenchment of parliamentary democracy, the slow return to autocracy or mere political stagnation. Restructuring Post-Communist Russia poses the fundamental questions while providing the information and analysis needed to give the (at least, preliminary) answers.