UNIVERSITY OF ESSEX

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UNIVERSITY OF ESSEX PAN-EUROPEAN INSTITUTE
PRESENTATION
Russia's Plunge towards Capitalism Transformin
g the Command Economy through Shock Therapy
and/or Institutional Reform
Ioannis Glinavos University of
Kent http//www.angelfire.com/ego/glinavos/ 18
November 2004
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OUTLINE TRANSITION THEORY WASHINGTON
CONSENSUS RUSSIA STAGE I REFORMS INSTANT
CAPITALISM RUSSIA STAGE II REFORMS INSTITUTIONAL
/ RULE OF LAW REFORMS
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TIMELINE OF EVENTS
1985 1990 1991 1992 1993
1995 1998 2000 2004
Putin Re-elected
- Dissolution of USSR - Yeltsin President of
Russia
Violent confrontation with parliament
Gorbachev General Secretary
Financial Collapse
- Price liberalization - Voucher privatization
Putin becomes president
CPSU renounces leading role
Loans for Shares
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INSTANT CAPITALISM (Shock Therapy)
Centrally Planned Economy

• Change of Property Structures
• Contract Law

Market Economy
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INSTITUTIONAL CONSENSUS

Centrally Planned Economy
Reform A Shock Therapy


Reform B Institutional Reform


Functioning Free Market