One challenge in transition economies has been to avoid being caught between overrapid restructuring (harmful to the private sector) and gradual change (can undermine robust private sector emergence). Empirical evidence suggests that in most of Eastern Europe and the former Soviet Union,...

June 1996The authors explain why in the Former Soviet Union (FSU) - especially Russia - unemployment has remained low and employment in state and privatized firms has remained high, while at the same time the informal or unofficial economy has grown swiftly. They trace this development to a...

This paper analyzes the causes and consequences of non-monetary transactions in Russia, drawing on a large enterprise survey. We show that barter and offsets are linked to liquidity problems at the level of the firm and to arrears in particular. We find evidence that the state has channeled...

Soviet era firms provided generous social benefits, including health and child care. Despite recent cuts, firm survey data show that benefits have remained a majorcomponent of total compensation. With benefits largely firm- specific and firms dominated by insiders, continuing attachment of...

This paper analyzes the causes and consequences of non-monetary transactions in Russia, drawing on a large enterprise survey. We show that barter and offsets are linked to liquidity problems at the level of the firm and to arrears in particular. We find evidence that the state has channeled...