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- Title
The Washington Consensus and Russian economic policy.
- Authors
Nekipelov, Alexander
- Abstract
The Washington Consensus presents a set of standard measures for economic policy, based on monetarist theory. Initially, it was designed for developing economies, already largely based on the market. Later on it was applied mechanically to post-communist states. However, the latter differ from the former at least in two respects. First, at the initial stage, post-communist economies are essentially non-market economies, and simply dismantling central planning and liberalising prices cannot change this. Second, in contrast to developing economies, they are industrialised economies where allocation of resources has not conformed with market principles. This meant that they faced a unique problem of massive reallocation of the factors of production as a result of market transformation. Application of the Washington Consensus approach in Russia resulted in the advent of a strange, hybrid, quasi-market system that reacts in an unusual way to market signals and macroeconomic policies and is unable to get out of an unprecedented economic crisis. Thus, paradoxical as it may be, the recipes of the supporters of the Washington Consensus prevent the Russian economic system from being transformed into a genuine market economy. This means that major changes are needed.
- Subjects
ECONOMIC policy; COMMUNIST state; WELFARE economics; MACROECONOMICS; ECONOMIC conditions in Russia, 1991-
- Publication
International Social Science Journal, 2000, Vol 52, Issue 166, p467
- ISSN
0020-8701
- Publication type
Article
- DOI
10.1111/1468-2451.00277