Rough Guides Travel

Rough guides travel for The capture of the government by special interest groups, that had already begun under the Soviet rule, reached an unprecedented scale in the 1990s. It is true that the economy of those special interest groups (call it the parallel economy) in the former Soviet Union had many features in common with a market economy. In particular, it was completely free from any sort of government intervention (but for the need to bribe or harass government officials), in fact, much freer than almost any conventional market economy. However, although the parallel economy helped correct some of the inefficiencies of the planned economy, it was the source of many other inefficiencies, some of them perhaps not less serious than those which it helped to remedy.

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Rough Guides Travel



And it is those inefficiencies that continue to plague the newly emerging Russian capitalism. The first such inefficiency is the absence of a broad constitutional agreement that would delineate property rights and establish a universal method of exchanging and enforcing those rights. In the official economy of the former Soviet Union, property rights were very strictly delineated and enforced. Rough guides travel 2016.

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