No one thought that privatization would be painless but many of the proponents of reform assumed that the costs, even crime and corruption, would be mitigated by the economic and managerial restructuring which was touted to be an ensuing byproduct of privatization in Russia.1 While belatedly there has been some restructuring, after more than a decade what there has been has been limited and slow in coming. Since factory directors ended up as owners or as large shareholders, most hesitated to put themselves out of a job.