Changing the Economic System in Russia.

• Author: Anderton, Charles H.

This book focuses on the first eight months of economic transition in Russia, from November 1991 to June 1992. The authors of ten of the twelve chapters have been deeply involved in Russia's change of economic system, either as senior members of the Russian government or as foreign economic advisors. They are driven by a belief that it is possible and desirable to build a democracy and a market economy based on private property in Russia.

The book is divided into four parts. The first assesses the initial reforms; the second explores government strategies in broad terms; the third covers privatization; the final part investigates money and foreign trade. Two major themes emerge from the book: (1) contrary to some social scientists who describe Russia's transformation as "shock therapy", the authors of this volume argue that the transition has been slow and half-hearted, and (2) the power of those with vested interests in the old regime to slow or detail reform is greater than is commonly understood.

Marek Dabrowski assesses the first half-year of Russian transformation from the point of view of Polish experience. Dabrowski maintains that the initial conditions for Russia's transition were worse than Poland's and that Russia's concept of reform was not sufficiently comprehensive and radical to overcome significant barriers to reform. The result was a closed economy, high inflation, lingering shortages, deep recession, and growing social impatience.

According to Anders Aslund, the Russian government sought a comprehensive and swift transition, but a gradualist approach took hold. The Russian debate became stuck in the old mindset of Marxism, the socialist command economy, and ordinary populism. Aslund concludes that the only means to curtail resistance to reform is parliamentary elections.

Sergei Vasiliev, a leading thinker on reform in the Russian government presents a fascinating, though pessimistic, account of the social, political, and institutional aspects of Russia's transition. The transition involves more than a radical stabilization and deregulation of the economy; it requires a "change of its basic elements, setting in motion a different mechanism".

Vasiliev identifies serious impediments to market economics in the Russian national character: a communal spirit opposed to individualism, contempt for commerce, mistrust of the rich, and a grudge against prosperous neighbors. These traits can be observed in most societies, but usually...