ABSTRACT
Economic transformation in Russia is determined not only by government policies such as liberalization, rigid monetary policy, and privatization, but also by the reaction of enterprises to these serious changes. Enterprises that faced a sharp decrease in demand and hard budget constraints did not try to enter new markets, devote energy to attracting new clients, change products, or increase their efficiency. The Expert Institute's survey supported the conclusion that the majority of managers were finding ways to survive the economic transition. The survey tried next to understand whether the constraints enterprises felt in 1992 were market or non-market by comparing difficulties in supplies and sales. The most popular strategy, however, was demand-oriented, focusing on shifts in output mix, production of new commodities, and entrance into new markets. To some extent, therefore, managers viewed a rigid monetary policy as synonymous with a free market economy, and the freezing of prices and wages as synonymous with state regulation.
