Markets Versus Hierarchies: A Political Economy of Russia from the 10th Century to 2008 (The Locke Institute)

Ekaterina Brancato illustrates from a transaction cost perspective how hierarchies influenced the structure of markets and behaviour of individual businesses and cartels in pre-revolutionary, Soviet and present-day Russia. She exposes the devastating effects of self-interested decision making of the government officials on economic growth, and highlights the inefficiencies of the legal system in Russia. Rent-seeking under autocratic and pseudo-democratic conditions is also explored. This unique book uses a transaction cost perspective to illustrate how hierarchies influenced the structure of markets and behaviour of individual businesses and cartels in pre-revolutionary, Soviet and present-day Russia. Ekaterina Brancato exposes the devastating effects of self-interested decision-making of government officials on economic growth, and highlights the inefficiencies of the legal system in Russia. She demonstrates that throughout Russian history considerable state involvement in the economy has meant that some markets were highly regulated; for most of the 20th century, open markets were suppressed by the political regime, and entrepreneurial success has been dependent on networking. The general population, the author argues, has exhibited an inadequate propensity to self-govern. In addition, the laws of contract and private property, crucial for development of markets, have been ineffective. The book concludes that, consequently, the cost of market transactions has been high and the cost of social networking through hierarchies relatively low.This book will strongly appeal to academics and students specializing in industrial organization, public choice, transition, entrepreneurship, social networks and cultural studies as well as Russian economic history and political economy. Business and management students focusing on transition economies will also find this book to be of particular interest. Title Page......Page 4 Copyright......Page 5 Contents......Page 6 Figures and tables......Page 8 Foreword......Page 10 Acknowledgements......Page 12 PART I Introduction......Page 14 1. Markets versus hierarchies......Page 16 2. Theoretical background......Page 18 PART II The Pre-revolutionary Period......Page 30 3. The dominant role of the state in governing economic and political affairs......Page 32 4. Social norms......Page 77 5. Status of merchants......Page 99 PART III The Soviet Period: 1917–85......Page 118 7. Social networks and cultural atavism......Page 149 PART IV Perestroika and the Post-Soviet Era......Page 164 9. Social networks and economic efficiency: everyday networks......Page 192 10. Networks and post-Soviet culture......Page 207 11. Conclusion: the reality of Russian political economy......Page 217 Appendix A: war statistics......Page 220 Appendix B: distribution of serfs around Moscow......Page 224 Bibliography......Page 225 Index......Page 244 Illustrates from a transaction cost perspective how hierarchies influenced the structure of markets and behaviour of individual businesses and cartels in pre-revolutionary, Soviet and Russia. This book exposes the devastating effects of self-interested decision making of the government officials on economic growth Ekaterina Brancato. Includes Bibliographical References (p. 212-230) And Index.