Evolution, Problems and Prospects
New Horizons in Money and Finance series
Edited by David Lane
David Lane In the post-communist societies, the paths of transition to a market and privatized economy are embedded in the legacy of the structure of state socialism. The hegemonic role of the state, as regulator, provider of welfare and owner of economic wealth made state socialism qualitatively diﬀerent from the capitalist systems of the West. The countries of the former USSR (and particularly the Russian Federation) have not, on a comparative basis, made a successful transition to a market economic system or to a pluralist political order. The research in this volume considers just one element in the transition process: the rise of commercial market-oriented banks, their links with government and non-ﬁnancial companies and their role as intermediaries in the provision of ﬁnance for investment. The contributors also consider the international aspects of Russian banking and particularly the impact and consequences of the ﬁnancial crisis of 1998. Discussion of economic transformation/transition in the post-communist countries has revolved around the focal points of the introduction of markets and the privatization of assets. The banking system, the role of money and their implications for economic development have been considerations of a secondary order brought into focus as a consequence of the hyperinﬂation of the early 1990s and the ﬁnancial collapse of 1998. The essays in this collection are arranged in three parts, the ﬁrst covering the evolution of the post-communist system of banks and their functioning, the second focusing on governance and the third considering global aspects of Russia’s...