Paul Krugman's A Country Is Not a Company PDF

By Paul Krugman

Nobel-Prize-winning economist Paul Krugman argues that company leaders have to comprehend the diversities among fiscal coverage at the nationwide and foreign scale and company process at the organizational scale. Economists care for the closed approach of a countrywide economic climate, while executives reside within the open-system international of commercial. furthermore, economists be aware of that an financial system has to be run at the foundation of basic rules, yet businesspeople are perpetually looking for the actual fabulous process. Krugman's article serves to clarify the area of economics for businesspeople who're so with regards to it and but are continuously annoyed via what they see. given that 1922, Harvard company Review has been a number one resource of leap forward administration ideas-many of which nonetheless converse to and effect us this present day. The Harvard company evaluate Classics sequence now deals readers the chance to make those seminal items part of your everlasting administration library. every one hugely readable quantity features a groundbreaking concept that keeps to form top practices and encourage numerous managers round the world-and could have a right away influence on you at the present time and for years to come.

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Extra info for A Country Is Not a Company

Sample text

Recently, a number of researchers pointed to institutional performance as an explanation for differences in growth rates among transition economies. Popov (2000) suggests that one of the main explanations of stronger output decline in Russia was the bad performance of government institutions. He shows that countries which were able to keep the level of budget expenditure close to pre-transition levels performed better during the tran32 Paradoxes of Russian economic growth 33 sition than countries where budget finance collapsed.

The chapter is organized as follows. Section 2 discusses the politicaleconomic aspects of Russian transition. In particular, it seeks explanations for the collapse of the government in Russia, and how the poor functioning of the government and natural resource abundance could explain such peculiarities of Russian performance as barter and export of capital. Section 3 shows how macroeconomic policies and structural reforms can explain differences in inter-regional performance. Section 4 concludes.

Russia started its economic and political transition with a very weak federal government. Yeltsin was very popular among the general public, which allowed him to appoint a reform-oriented government, but he was not supported by the communist-dominated Parliament. The Russian budget was in deep deficit, and the bureaucrats at middle and lower levels often sabotaged the newly appointed top level of the federal government. In order to prevent the breaking down of Russia into smaller states, and to get the political support of the regions, Yeltsin granted generous independence to the regions, which further weakened the position of the federal government.

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A Country Is Not a Company by Paul Krugman


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