Editor's Introduction

Abstract

The articles in this issue of Problems of Economic Transition focus on two themes. The first three address the question of socioeconomic policy; the following two focus on Russia's foreign economic relations. The first article, by Aleksandr Nekipelov, challenges some of the basic assumptions of macro-stabilization policy and questions the applicability of other policies to the Russian economy, which he contends is different from other economies that are developing or in transition. Among the topics Nekipelov emphasizes is the nature of the relationship between savings and investment in Russia. He argues that under current conditions there is no hope for increasing savings in order to stimulate investment and that the current budget deficit and balance of payments surplus ‘devour’ savings, which shrinks the pool of domestic investment resources. Foreign direct investment in Russia, meanwhile, remains a trivial source of capital.