One of Russia’s priority development goals over the past 18 months has been the focus on modernization. In short, the emerging consensus is that the economic foundation of the Russian economy is stuck in the 20th century and prevents the country from achieving its full potential.
In 2009, President Medvedev outlined his vision of modernization, arguing that the country should embrace new technologies and simply “move forward.” Yet, since his speech in 2009 there hasn’t been much progress. As the Economist review of Russia’s aspirations and struggles with modernizing its economy shows, critics argue that you can’t revive the economy without political liberalization.
That’s one part of the story, but there is another. In their Economic Reform Feature Service article, Igor Belikov, Vladimir Verbitskiy, and Aleksey Ponomarev, argue that poor management practices and weak corporate governance are responsible for the lack of modernization and technological innovation in the Russian economy as well as insufficient growth. Simply put, Russian enterprises are not run effectively and efficiently.
Article at a glance:
- Russia’s experience shows that successful modernization must go beyond introducing new manufacturing technologies and focus equally on improving management and corporate governance practices.
- Good corporate governance is crucial for effective management of enterprises as it determines whether managerial and technological innovations can be successfully implemented.
- The improvement of management and corporate governance approaches in Russian enterprises, both private and state-owned, is the pre-requisite for modernizing the economy as a whole.
Read the full article here: http://www.cipe.org/publications/fs/pdf/021511.pdf
Published Date: February 24, 2011