Contents

UNIT 1.  WHAT IS IT ALL ABOUT? 6

Russian Experience. In Search of Intellect and Wealth 11

UNIT 2.  ECONOMICS AND ECONOMY 13

Russian Experience. Gauging the True Size of Russia’s Economy 18

Russia No Longer Among World Market’s TopPlayers . 22

UNIT 3.  THE OIL PRICE SHOCKS . 24

World Experience. Cheap Oil . 28

More Money in Most Pockets 34

UNIT 4.  INCOME DISTRIBUTION 36

Russian Experience. Shop Assistance 43

UNIT 5.  THE ROLE OF THE MARKET 49

Russian Experience. “New Russians” Come From the Old

Nomenclature 55

UNIT 6.  DEMAND, SUPPLY, AND THE MARKET 60

Russian Experience. Citicorp Invests in Russia 69

World Experience. Friction-Free Capitalism and the

Price of the Future 71

UNIT 7.  WHAT DO GOVERNMENTS DO? 74

Russian Experience. Russia Has Dropped Out of the

Community of Developed Countries 80

UNIT 8.  WHAT SHOULD GOVERNMENTS DO? 87

Russian Experience. State Duma Rejects Welfare

Package Again 97

UNIT 9.  BUSINESS ORGANIZATION 100

Russian Experience. Common Profile of a Russian Enterprise 107

UNIT 10.  MARKET STRUCTURE AND

IMPERFECT COMPETITION 112

Russian Experience. Russian Tobacco Manufacturers Lie Low 121

UNIT 11.  FACTOR MARKETS: LABOR 125

Russian Experience. Recruitment in Russia: Still Climbing 135

Working Without Pay 138

UNIT 12.  HUMAN CAPITAL 140

World Experience. Finding Opportunity in the Global Economy 151

UNIT 13.  COPING WITH RISK IN ECONOMIC LIFE 154

Russian Experience. Reuters Eyes on Russia’s Risks 166

UNIT 14.  TAXES AND PUBLIC SPENDING 168

Russian Experience. Taxes Higher in Russia Than Elsewhere 176

A Country Where People Pay Taxes 179

UNIT 15.  MONEY AND MODERN BANKING 181

Russian Experience. Savings of “Very Rich” Families 194

The Battle of the Banks 195

The History of Russian Money 197

UNIT 16.  INTERNATIONAL TRADE AND COMMERCIAL

POLICY. 199

Russian Experience. Higher Excise on Imports. 213

209