Economic Reform: Institutional and Structural Aspects

Abstract

The measures taken by the government at the beginning of 1992 were of an extraordinary nature and were occasioned by the de facto loss of control over national economic processes as a result of the structural disintegration of the union state. The transition to the new practice of price formation was the first radical step toward a market economy. At the same time, macroeconomic policybased on the highest possible degree of liberalization of the internal market, in combination with not unsuccessful attempts to strengthen the ruble during the first months, as reform actions acquire greater depth and reach the microeconomic levelhas come to be everywhere perceived as inadequate. The reason is the practical absence of the institutional component of the reform and the insufficient attention that is paid to its social and structural consequences. Also left out of consideration is the time factor, even though the actual duration of specific stages determines whether the transitional states of the economic syste...