This article investigates the role of boards in founder-managed firms with concentrated ownership in emerging markets. The literature frequently suggests that in this type of companies, boards have little influence on the corporate decision making. The article conducts a case study of AFK Sistema—a large Russian founder-managed firm with concentrated ownership. We observe that, contrary to the expectations, in this company, the founder provided real authority to the board, at the same time focusing on recruiting independent (mainly foreign) members. Based on this case, we argue that selectively empowering boards in this type of ownership setting could be beneficial for the firm: Selective empowerment is a source of intrinsic motivationfor the independent board members, making them proactively search for new projects and assist in their implementation on behalf of the firm. As a result, the company can overcome a number of important barriers in its development.
How and when are governments able to encourage firms and schools to work together to develop workers’ skills? Upgrading the quality of human capital in the workforce is widely seen as a key challenge faced by countries looking to escape the “middle income trap.” Growing attention has been paid to public-private partnerships (PPP) between individual firms and schools as a powerful tool for meeting this challenge, but key facilitators of PPP thought crucial in existing studies – strong, independent employers’ associations and labor unions – are often missing in such settings. To explore the emergence of PPP in skill development in the developing world, we draw on recent reform experiences in Russia’s regions that have led to a surge in complex, costly forms of PPP despite weakly developed business associations and unions. We argue that variation in the administrative capacity of regional governments and their political accountability explains this surge. Strong administrative capacity reassures all parties that regional authorities can monitor their counterparties’ compliance with agreements, while political accountability creates incentives for authorities to do so. We test our argument using original data on the existence and content of firm-school partnerships across all Russia’s regions for 2013.
It is widely recognized that unified oppositions present a bigger threat to dictators than divided oppositions. In this paper, we use micro-level data on opposition protests in Putin-era Russia to examine the factors that facilitate co-operation among different opposition forces. In particular, we focus on what leads so-called systemic opposition parties – those who have been granted some institutional accommodation by the regime – to join forces with non-systemic opposition forces. We propose a novel permutation-based method for analyzing protest coordination using event count data and find that coordination is most likely on issues of fundamental importance to the systemic opposition’s base supporters. We also find that state co-optation reduces the extent of coordination. These findings illustrate the politically precarious position of “loyal” oppositions under autocracy; they must simultaneously show fealty to the state and maintain some measure of credibility as an opposition party that cares about its supporters’ demands.
Since 2008, tighter budget constraints have forced the Russian federal government to adjust the system governing its relations with the regions. This paper argues that more advanced Russian regions have the potential to develop a constructive response to the recent deterioration in their operational environment. This argument is based on an analysis of the experiences of coping with the external shocks that have occurred over the last 25 years in the Republic of Tatarstan. The paper identifies key factors that have helped the republic successfully tackle previous shocks, such as elite cohesion and internal consensus regarding republican developmental priorities.
Problems of post-Communism
The paper investigates the effect of Communist legacies on attitudes toward migrants in present-day Russia. Midway through the first decade of the 2000s, Russia established itself as an attractive center of labor migration. This rise of migration triggered an upsurge of xenophobic sentiment and nationalism. This paper examines the variation of anti-migrant sentiments across the regions of the Russian Federation and concludes that it is strongly affected by the legacies of the Communist regime. Regions with a higher share of CPSU members in their population in the 1970s are characterized by stronger negative attitudes towards migrants.