Entry and Entrepreneurship: The Case of Post-Communist Russia
Journal des Economistes et des Etudes Humaines, Vol. 11, No. 1, 2001
26 Pages Posted: 18 Jan 2010
Date Written: 2001
The Russian economic system has been a state of continual turmoil and reform for over a century, making it difficult for business to develop as the political, legal, and economic foundation continually shifts. The beginning of the 20th century saw Russia struggling to change its economic system from feudalism to mercantilism under the Czars. World War I ended with Russia in the midst of transforming its economic and political system into the world's first full-fledged communist system. The first months after the October REvolution were characterized by decree after decree detailing the aspirations of the Bolshevik leaders to usher in a new communist order. These decrees ranged from abolition of the exploitation of men and women to the nationalization of all industry. The period of communist optimism quickly gave way to the reality of perverse incentives and the inability of actors to engage in rational economic calculation.
JEL Classification: B53, P5, D02
Suggested Citation: Suggested Citation