Oligarchs: The Past or the Future of Russian Capitalism?

35 Pages Posted: 31 Aug 2004

See all articles by Sergei Guriev

Sergei Guriev

Sciences Po; Centre for Economic Policy Research (CEPR)

Andrei Rachinsky

Center for Economic and Financial Research (CEFIR); New Economic School, Moscow

Date Written: July 2004


Based mostly on a unique dataset built for the Country Economic Memorandum (CEM) 2004 we discuss degree of ownership concentration in Russian economy and its role in shaping economic and political institutions in Russia. In particular, we find that Russian 'oligarchs' do control a substantial part of the economy including natural resources industries. In the sectors covered by our sample (that account for 77% of total industrial output), 22 largest private owners control 39-42% of output and employment and seem to run their empires more efficiently than other Russian owners. Majority of Russian population believes that oligarchs acquired their assets in an illegitimate way which creates a fundamental problem for building a democratic and prosperous Russia. Comparing modern Russia to other countries that have faced high concentration of national wealth, we consider three possible scenarios of development.

Keywords: Oligarchs, ownership concentration, property rights

JEL Classification: P26

Suggested Citation

Guriev, Sergei and Rachinsky, Andrei, Oligarchs: The Past or the Future of Russian Capitalism? (July 2004). Available at SSRN: https://ssrn.com/abstract=579581 or http://dx.doi.org/10.2139/ssrn.579581

Sergei Guriev

Sciences Po ( email )

27 rue Saint-Guillaume
Paris Cedex 07, 75337

HOME PAGE: http://econ.sciences-po.fr/staff/sergei-guriev

Centre for Economic Policy Research (CEPR)

United Kingdom

Andrei Rachinsky (Contact Author)

Center for Economic and Financial Research (CEFIR) ( email )

47 Nakhimovsky Prospect, Office #720
117418 Moscow

New Economic School, Moscow

100A Novaya Street
Moscow, Skolkovo 143026

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