Changes of the World Economy and the Soviet/Russian Economy

Satoshi Mizobata
2015 Russian and East European Studies  
The present study demonstrates theoretical significance of system changes in the Soviet/ Russian economy under the globalization, and reexamines its research changes. Through the historical evolution and the research development, rich experiences in the Soviet/ Russia give us basis for an investigation of the economic system, particularly market and the state. Russia radically liberalized in transition and its liberalization process synchronized neo-liberal changes of the world after 1970s,
more » ... h made the contemporary capitalism "normalized" one with the unequal society. In practice, Russia drastically changed its economic system after the transformation in 1992, and a newly built market looked to function completely, based on the liberal economic institutions. The Russian market, however, has shown its specificities strikingly different from the standard model of the developed market. The concepts such as "the emerging market" and "the state capitalism" also testify that Russia has different market structure and different market actors. The Soviet/Russian economy has fluctuated on "the imported growth model" by petroleum and cheap money as well as an economic cycle, which were caused by a long-term Soviet/ Russian structure. Economics of transition in Russia gives clues to analyze the fundamental determinants in the Soviet/Russian economic crisis. The following determinants work in close operation. First of all, in spite of liberal policy measures, the economic growth cannot establish normal markets and cannot improve market quality. Market quality can be defined as a measure of efficiency in allocation and fairness in pricing based on market infrastructure. The Russian market building caused misuse of institutions and rules and it lost the law enforcement. The informal institutions substituted for the formal institutions, and even though they diminished risks and transaction costs under a malfunction of market infrastructure, market quality has got worsened. The state's strong control over the economic actors also accelerated deterioration of market quality. Secondly, under
doi:10.5823/jarees.2015.29 fatcat:mpn7yqjk5barxk23spbgijivb4