Fifteen Years of Economic Reform in Russia: What Has Been Achieved? What Remains to Be Done?

Abstract

The paper provides an overview of the course of economic reform and the performance of the Russian economy since the early 1990s and an analysis of the structural reform challenges ahead. It assesses the contribution of institutional and structural reforms to economic performance over the period, before turning to the question of where further structural reforms could make the biggest contribution to improved performance. Three major conclusions emerge. First, there is still a great deal to be done to strengthen the basic institutions of the market economy. While the Russian authorities have embarked on some impressive – and often technically complex – ‘second-generation’ reforms, many ‘first-generation’ reforms have yet to be completed. Secondly, the central challenges of Russia’s second decade of reform are primarily concerned with reforming state institutions. Thirdly, the pursuit of reforms across a broad front could enable Russia to profit from complementarities that exist among various strands of reform. Quinze ans de reformes economiques en Russie : Qu'a-t-elle acquis ? Que reste-t-il a faire ? L’article donne un apercu du deroulement des reformes economiques et des performances de l’economie russe depuis le debut des annees 90, ainsi qu’une analyse des enjeux des futures reformes structurelles. L’article considere la contribution des reformes institutionnelles et structurelles a la performance economique durant la periode, avant d’examiner dans quels domaines des reformes structurelles additionnelles pourraient avoir la plus grande contribution a l’amelioration de la performance economique. Il en resulte trois conclusions majeures. Premierement, il reste encore beaucoup a faire pour renforcer les institutions de base d’une economie de marche. Bien que les autorites russes aient commence quelques reformes de « seconde generation » qui sont impressionnantes – et souvent techniquement complexes-, il reste un bon nombre de reformes de « premiere generation » a achever. Deuxiemement, les defis centraux de la deuxieme decennie de reformes concernent en premiere ligne la reforme des institutions de l’Etat. Troisiemement, la poursuite des reformes sur un large front permettrait a la Russie de profiter des complementarites existantes entre les differents axes des reformes.