Russia's economic modernization The purpose of this article is to analyse Russia's ongoing modernization and assess its potential for reviving the economy. The modernization launched by President Dmitrii Medvedev in 2009 represents an extension of the economic reforms that had been discontinued after 2004. The article identifies the main problems modernization needs to address and investigates proposed measures. Focus is on the economic-institutional aspects of the modernization programme and

more »

... e structural problems of the economy. The main findings are that the modernization policy is based on a thorough analysis of the structural problems of the economy and contains a long list of reasonable proposals , but that it is based on a top-down approach, that many problems require political reform rather than economic, and that insufficient attention is given to creating good conditions for expansion and innovation among small and medium-sized enterprises (SME). In addition it is argued that the Russian authorities underestimate the crucial role of civil society and political institutions in the modernization of the economy.