Dividing the Spoils: Pensions, Privatization, and Reform in Russia's Transitionкнига
Аннотация: No AccessPolicy Research Working Papers21 Jun 2013Dividing the Spoils: Pensions, Privatization, and Reform in Russia's TransitionAuthors/Editors: Branko Milanovic and Ethan B. KapsteinBranko Milanovic and Ethan B. Kapsteinhttps://doi.org/10.1596/1813-9450-2292SectionsAboutPDF (0.1 MB) ToolsAdd to favoritesDownload CitationsTrack Citations ShareFacebookTwitterLinked In Abstract:The gains from the transition in post-communist Russia were captured by the new managerial class, which won rents from the state in the form of privatized enterprises, state subsidies, credits, and opportunities for tax evasion. Those rents reduced state revenues that could have supported social policy - including pension reform, which in turn could have fueled industrial restructuring. With neither pension reform nor industrial restructuring, Russia's economy has continued to shrink. Kapstein and Milanovic present a political economy model in which policy is the outcome of an interaction between three actors: government (G), managers and workers (W), and transfer recipients (P). The government's objective is to stay in power, for which it needs the support of either P or W. It can choose slow privatization with little asset stripping and significant taxation, thus protecting the fiscal base out of which it pays pensioners relatively well (as in Poland). Or it can give away assets and tax exemptions to managers and workers, who then bankroll it and deliver the vote, but it thereby loses taxes and pays little to pensioners (as in Russia). The authors apply this model to Russia for the period 1992-96. An empirical analysis of electoral behavior in the 1996 presidential election shows that the likelihood of someone voting for Yeltsin did not depend on that person's socioeconomic group per se. Those who tended to vote for Yeltsin were richer, younger, and better educated and had more favorable expectations of the future. Entrepreneurs, who had more of these characteristics, tended to vote for Yeltsin as a result, while pensioners, who had almost none, tended to vote against Yeltsin. Unlike Poland, Russia failed to create pluralist politics in the early years of the transition, so no effective counterbalance emerged to offset managerial rent-seeking and the state was easily captured by well-organized industrial interests. The political elite were reelected because industrial interests bankrolled their campaign in return for promises that government largesse would continue to flow. Russia shows vividly how political economy affects policymaking, because of how openly and flagrantly government granted favors in return for electoral support. But special interests, venal bureaucrats, and the exchange of favors tend to be the rule, not the exception, elsewhere as well. This paper - a product of Poverty and Human Resources, Development Research Group - is part of a larger effort in the group to study the political economy of reform in transition countries. This study was funded by the Bank's Research Support Budget under the research project The Political Economy of Fiscal Policy in Transition Countries (RPO 682-52). The authors may be contacted at [email protected] and [email protected]. Previous bookNext book FiguresreferencesRecommendeddetailsCited byRegional Equity and Influencing Factor of Social Assistance in ChinaChinese Geographical Science, Vol.31, No.424 April 2021Perceptions of economic insecurity: Evidence from RussiaEconomic Systems, Vol.34, No.4Perceptions of Economic Insecurity: Evidence from RussiaSSRN Electronic JournalA post Keynesian critique of privatization policies in transition economiesJournal of International Development, Vol.14, No.517 July 2002 View Published: March 2000 Copyright & Permissions Related Regions Europe and Central Asia Related Countries Russian Federation Related Topics Finance and Financial Sector Development Macroeconomics and Economic Growth Private Sector Development KeywordsADDITIONAL FINANCINGBANKBEST PRACTICESCAPITAL MARKETSCHECKSINCOMEINTERESTSMINIMUM PENSIONPENSION POLICIESPENSION REFORMPENSION SYSTEMPENSIONERSPENSIONSREGRESSION ANALYSISRENTSREVENUESSAFETY NETSAVINGSSPENDINGSTUDENTS PDF DownloadLoading ...
Год издания: 2000
Авторы: Branko Milanović, Ethan B. Kapstein
Источник: World Bank policy research working paper
Ключевые слова: Russia and Soviet political economy
Другие ссылки: World Bank policy research working paper (HTML)
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Library Union Catalog of Bavaria, Berlin and Brandenburg (B3Kat Repository) (HTML)
Library Union Catalog of Bavaria, Berlin and Brandenburg (B3Kat Repository) (PDF)
Library Union Catalog of Bavaria, Berlin and Brandenburg (B3Kat Repository) (HTML)
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