MARC Record from Library of Congress

Record ID	marc_loc_2016/BooksAll.2016.part32.utf8:108294748:4927
Source	Library of Congress
Download Link	/show-records/marc_loc_2016/BooksAll.2016.part32.utf8:108294748:4927?format=raw

LEADER: 04927cam a22003977a 4500
001 2004616762
003 DLC
005 20050505075753.0
007 cr |||||||||||
008 041129s2000 dcu sb i000 0 eng
010 $a 2004616762$z 00702984
040 $aDLC$cDLC
043 $ae-ur-ru
050 00 $aHG3881.5.W57
100 1 $aKapstein, Ethan B.
245 10 $aDividing the spoils$h[electronic resource] :$bpensions, privatization, and reform in Russia's transition /$cEthan B. Kapstein, and Branko Milanovic.
260 $a[Washington, D.C. :$bWorld Bank,$c2000]
490 1 $aPolicy research working paper ;$v2292
538 $aSystem requirements: Adobe Acrobat Reader.
538 $aMode of access: World Wide Web.
500 $aTitle from PDF file as viewed on 11/29/2004.
530 $aAlso available in print.
504 $aIncludes bibliographical references.
520 3 $aThe gains from the transition in post-communist Russia were captured by the new managerial class, which won rents from the state in the form of privatized enterprises, state subsidies, credits, and opportunities for tax evasion. Those rents reduced state revenues that could have supported social policy - including pension reform, which in turn could have fueled industrial restructuring. With neither pension reform nor industrial restructuring, Russia's economy has continued to shrink. Kapstein and Milanovic present a political economy model in which policy is the outcome of an interaction between three actors: government (G), managers and workers (W), and transfer recipients (P). The government's objective is to stay in power, for which it needs the support of either P or W. It can choose slow privatization with little asset stripping and significant taxation, thus protecting the fiscal base out of which it pays pensioners relatively well (as in Poland). Or it can give away assets and tax exemptions to managers and workers, who then bankroll it and deliver the vote, but it thereby loses taxes and pays little to pensioners (as in Russia).The authors apply this model to Russia for the period 1992-96. An empirical analysis of electoral behavior in the 1996 presidential election shows that the likelihood of someone voting for Yeltsin did not depend on that person's socioeconomic group per se. Those who tended to vote for Yeltsin were richer, younger, and better educated and had more favorable expectations of the future. Entrepreneurs, who had more of these characteristics, tended to vote for Yeltsin as a result, while pensioners, who had almost none, tended to vote against Yeltsin. Unlike Poland, Russia failed to create pluralist politics in the early years of the transition, so no effective counterbalance emerged to offset managerial rent-seeking and the state was easily captured by well-organized industrial interests. The political elite were reelected because industrial interests bankrolled their campaign in return for promises that government largesse would continue to flow. Russia shows vividly how political economy affects policymaking, because of how openly and flagrantly government granted favors in return for electoral support. But special interests, venal bureaucrats, and the exchange of favors tend to be the rule, not the exception, elsewhere as well. This paper - a product of Poverty and Human Resources, Development Research Group - is part of a larger effort in the group to study the political economy of reform in transition countries. This study was funded by the Bank's Research Support Budget under the research project "The Political Economy of Fiscal Policy in Transition Countries" (RPO 682-52). The authors may be contacted at <A HREF="mailto:ekapstein@hhh.umn.edu">ekapstein@hhh.umn.edu</A> and <A HREF="mailto:bmilanovic@worldbank.org">bmilanovic@worldbank.org</A>"--World Bank web site.
651 0 $aRussia (Federation)$xEconomic policy$vEconometric models.
650 0 $aPrivatization$zRussia (Federation)$vEconometric models.
650 0 $aTax evasion$zRussia (Federation)$vEconometric models.
650 0 $aFiscal policy$zRussia (Federation)$vEconometric models.
650 0 $aTaxation$zRussia (Federation)$vEconometric models.
650 0 $aPensions$zRussia (Federation)$vEconometric models.
650 0 $aPolitical corruption$zRussia (Federation)$vEconometric models.
650 0 $aIndustrialization$xEconomic aspects$zRussia (Federation)$vEconometric models.
700 1 $aMilanović, Branko.
710 2 $aWorld Bank.
830 0 $aPolicy research working papers (Online) ;$v2292.
856 40 $uhttp://www.econ.worldbank.org/view.php?type=5&id=1043