chapter  9
17 Pages

Networks and new enterprise development in Russia

A case study of the Yaroslavl region
ByJohn Struthers, Alistair Young, John Wylie

With the collapse of central planning in Russia, there are undoubtedly opportunities for new enterprise development which did not exist before. These may take the form of the transformation of large state enterprises into entrepreneurial private enterprises, perhaps through being split up into smaller and more economically efficient units; or they may involve the creation of completely new units, possibly in areas of economic activity neglected by the previous system. Unfortunately, it is often very difficult to take advantage of these opportunities. The difficulties are a consequence of the fact that market institutions have not yet taken firm root in the Russian economy; to quote Marx out of context, the new system is ‘still stamped with the birthmarks of the old society from whose womb it has emerged’ (1875 [1974]: 346).