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Why is the Russian Bear Still Asleep After Ten Years of Transition?

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Type: Working Paper
Author: Carlsson, Lars; Lundgren, Nils-Gustav; Olsson, Mats-Olov
Date: 2000
Agency: International Insitute for Applied Systems Analysis, Laxenburg, Austria
Series: Interim Report, no. IR-00
URI: https://hdl.handle.net/10535/3998
Sector: Forestry
Region: Former Soviet Union
Subject(s): timber
economic development
forest management
institutional analysis
Abstract: "By virtue of its former importance in the Russian economy and its future prospects for wealth creation the forest sector is a good illustration of the Russian dilemma. The nation seems to have it all: resources, people, endless needs to be fulfilled and in comparison to many poor areas of the world there already exists a production apparatus, however underutilized. Yet, despite deliberate efforts to induce the 'blessings' of capitalism, the 'Russian Bear' still seems to be asleep. How can this be explained? Answering this question is the task of this article. Presumably the answer is relevant not only for the forest sector but for other sectors of the Russian economy as well. The article aims at increasing our understanding of the creation of a market economy by providing the fundamental insight that there are no easy top-down procedures that automatically lead to this goal."

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