Nonfiction 3

Policy-Making for Russian Industry by Stephen Fortescue

By Stephen Fortescue

A description of the modern Russian economic system at the foundation of an research of monetary policy-making buildings and methods. The empirical element is targeted within the heavy quarter, even if the relationships among all sectors obtain realization. All resources of policy-making enter are tested - the presidency and important governmental businesses, sectoral kingdom firms, business consultant institutions, parliament and the areas, and person firms. Policy-making strategies obtain enormous recognition, as a part of an attempt to tell apart sharply among formal and casual varieties of coverage making.

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Even those who had no time whatsoever for Soviet state institutions lamented the reformers' apparent failure to recognize the importance of nurturing strong state institutions, even those necessary to foster and regulate a market economy. Even the destructive role just mentioned required, so the reformers' critics claimed, strong and self-confident new agencies. One cannot easily destroy old agencies, since history has shown that bureaucratic bodies even 38 Policy-Making for Russian Industry in revolutionary times have great powers of survival.

Given the importance of policy-making procedures for a choice between at least two of our models, the sectoral negotiated and bargained economies, a section is then devoted to the role in Russia today of soglasovanie, formalized consultation and signing-off procedures in decision-making. Finally, the involvement of specific central state agencies in economic policy-making and administration is examined. The objects of attention are the agencies which in Soviet parlance were called nadvedomstvennye, those that stood above sectorally specialized agencies and that had general policy and coordination functions.

Given the link between financial discipline and 24 Policy-Making for Russian Industry the decline in output, the unacceptability of the latter means that the former must be given a lower priority. 22 Some see no problem with this approach, since they do not accept the link between money supply and inflation. They claim that inflation in Russian conditions is caused not by increases in the money supply, but through a combination of monopoly rent seeking, technological backwardness and increasingly under-utilized capacity.

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