A Philosophical Approach of the Modernization Process of Russian Economy and Economic Institutions

Authors

  • Alexandra Grigorievna POLYAKOVA Industrial University of Tyumen, Financial University under the Government of the Russian Federation http://orcid.org/0000-0002-3674-4111
  • Julia Nikolaevna NESTERENKO Moscow State Humanities and Economics University
  • Elena Albertovna SVERDLIKOVA Lomonosov Moscow State University

DOI:

https://doi.org/10.18662/po/08

Keywords:

Institutional theory, institutional reforms, institutional trap, state administration, development institutions

Abstract

The article deals with the specific features of functioning and evolution mechanisms of institutional traps as objects of state intervention during the institutional reforms, thus deals with the following hypothesis: there exists a uniform country-specific pattern of institutional traps emergence during economic modernization. Without management of institutions it is not possible to provide realization of an optimal scenario of state development. The spread of positive institutional practices and successful experience of institutional reforms may be considered as a tool of social state development. However, there are situations when newly created institutions fail the task but instead of dying seek to implement old practices, transforming into institutional traps, i.e. stable self-sustainable norms dissonant with aims of social development. Institutional traps, entailing the experience of economic agents’ sustainable interaction, derive not only negative effects, but also are considered by the science to be sustainable samples for modelling in order to increase the efficiency of particular institutional interaction areas. The emergence of institutional traps in a certain field of activity has several associated effects: the existence of inefficient institutions can lead to a multiplicative effect and generate "institutions for their own sake", and also to form a supporting infrastructure. Thus, a specific servicing subsystem appears; imposing greater restrictions in an inefficient institution leads to a greater degree of strengthening the servicing subsystem, contributing to the expansion of the informal or shadow sectors. The present sophistication of economic activities causes modification of institutional traps and their management basics. This brings the authors to explore not only the essential aspects of institutional traps, but also the specifics of their transformation. It was discovered that the substantial role in eliminating those traps is prescribed to control mechanisms that appear to be the complex of instrumentally mediated stimulating or restrictive reactions (and diagnostics tools for them as well) to deviation of an institute from pre-assigned behaviour patterns.

References

Alonso, J. (2011). Colonisation, Institutions and Development: New Evidence. Journal of Development Studies, 47(7), 937-958. doi:https://doi.org/10.1080/00220388.2010.527948

Angeles, L. (2011). Institutions, Property Rights, and Economic Development in Historical Perspective. KYKLOS, 64(2), 157-177. doi:https://doi.org/10.1111/j.1467-6435.2011.00500.x

Caballero, G., & Soto-Onate, D. (2015). The Diversity and Rapprochement of Theories of Institutional Change: Original Institutionalism and New Institutional Economics. Journal of Economic, 49(4), 947-977. doi:https://doi.org/10.1080/00213624.2015.1105021

Deroy, X., & Clegg, S. (2015). Back in the USSR: Introducing Recursive Contingency Into Institutional Theory. Organization Studies, 36(1), 73- 90. doi:https://doi.org/10.1177/0170840614544556

Dollar, D. (2016). Institutional quality and growth traps. Paper presented at the Conference on Asia and the Middle-Income Trap, Beijing.

Draskovic, V., Popov, E., & Peleckis, K. (2017). Modelling of Institutional Changes in Transition Countries the Gap Between the Theory and Practice. Montenegrin Journal of Economics, 13(1), 125-140.

Gasanov, M., Zhironkin, S., & Hellmer, M. (2017). Identification of Institutional Traps of Wellbeing in Deindustrializing and Structural De-socializing Conditions. Paper presented at the WELLSO 2016 - III International Scientific Symposium on Lifelong Wellbeing in the World.

Kolmakov, V., & Polyakova, A. (2017). Health sector performance under Private-Public Partnership. European Proceedings of Social and Behavioural Sciences, 26, 436-443. doi:https://doi.org/10.15405/epsbs.2017.07.02.56

Kookueva, V. V., & Tsertseil, J. S. (2017). Problems of Minimum salary in Russia. European Proceedings of Multidisciplinary Sciences, 1, 66-79. doi:https://doi.org/10.15405/epms.2017.06.8

Kremser, C. E. W. (2016). Economic Growth Theory and Philosophy of History The Theory of Institutional Change by Douglass C. North. Vierteljahrschrift für Sozial- und Wirtschaftsgeschichte, 103(1), 34-53.

Marshall, A. (1920). Principles of Economics. London: Macmillan.

Polterovich, V. M. (1999). Institutional traps and economic reforms. Economics and Mathematical Methods, 35(2).

Rudneva, L., Pchelinceva, I., & Gureva, M. (2017). Creating a Development Model of "Green" Economy. European Proceedings of Multidisciplinary Sciences, International Conference on Responsible Research and Innovation (RRI).(XXVI - RRI 2016), 286-294. doi:https://doi.org/10.15405/epsbs.2017.07.02.37

Sultan, A., & Washbrook, D. (2017). Introduction: Institutions and economic development in South Asia. Modern Asian Studies, 51(6), 1657-1667. doi:https://doi.org/10.1017/S0026749X17000099

Tridico, P. (2011). Institutions, Human Development And Economic Growth In Transition Economies. London: Palgrave Macmillan.

Williams, C., & Horodnic, I. (2016). An institutional theory of the informal economy: some lessons from the United Kingdom. International Journal Of Social Economics, 43(7), 722-738.

Yanovskiy, K., & Shulgin, S. (2008). Institutions, democracy and economic growth: 180-year development trial. Economic policy, 3, 57-75.

Yekimova, K. V., Savelyeva, I. P., & Tsalo, I. M. (2016). Assessment of the Impact of the Changes in the Situation of the World Markets on the Regional Processes. Ekonomika regiona - Economy of Region, 12(3), 670- 683. doi:https://doi.org/10.17059/2016

Zhavoronkov, S. (2012). Political and economic results of July 2012. Economic and political situation in Russia, 7, 5-7.

Downloads

Published

2018-03-30

How to Cite

POLYAKOVA, A. G., NESTERENKO, J. N., & SVERDLIKOVA, E. A. (2018). A Philosophical Approach of the Modernization Process of Russian Economy and Economic Institutions. Postmodern Openings, 9(1), 109-128. https://doi.org/10.18662/po/08

Issue

Vol. 9 No. 1 (2018): Postmodern Openings

Section

Theoretical articles

License

Authors who publish with this journal agree to the following terms:

  • Authors retain copyright and grant this journal right of first publication, with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work, with an acknowledgement of the work's authorship and initial publication in this journal.
  • Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g. post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
  • Authors are permitted and encouraged to post their work online (e.g. in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as an earlier and greater citation of published work (See The Effect of Open Access).

Postmodern Openings Journal has an Attribution-NonCommercial-NoDerivs
CC BY-NC-ND

CC_BY_NC_ND

Most read articles by the same author(s)

Publish your work at the Scientific Publishing House LUMEN

It easy with us: publish now your work, novel, research, proceeding at Lumen Scientific Publishing House

Send your manuscript right now