How do elections and post-election protest shape political trust in a competitive autocracy? Taking advantage of largely exogenous variation in the timing of a survey conducted in Moscow in 2011, we find that an election had little systematic effect on political trust, perhaps because vote improprieties were not new information. In contrast, the unexpected protest that followed increased trust in government. We argue that when autocrats permit protest unexpectedly, citizens may update their beliefs about the trustworthiness of the government. In this case, heightened trust arises largely from opposition voters - those most likely to be surprised by permission to hold the protest - who update their beliefs. Our results suggest that citizens may cue not off the content of a protest, but off the government's decision to permit it. In addition, autocrats can increase trust in government by allowing protest when it is unexpected.
Available evidence indicates that there is considerable variation among autocracies in the extent to which subnational officials are rewarded for economic growth. Why is economic performance used as a criterion for appointment in some autocracies but not in others? We argue that in more competitive—though still autocratic—regimes, the political imperatives of maintaining an electoral machine that can win semi-competitive elections leads regime leaders to abandon cadre policies that promote economic development. Using data on turnover among high-level economic bureaucrats in Russia’s 89 regions between 2001 and 2012, we find that performance-based appointments are more frequent in less competitive regions. These findings demonstrate one way that semi-competitive elections can actually undermine economic development under autocracy
This article attempts to open up the black box of the Russian Presidential Administration (‘the Kremlin’). Borrowing from literature on ‘institutional presidencies’ and institutional approaches to authoritarianism, I argue that the administration institutionalised over the years. More stable and predictable procedures enhanced administrative presidential powers, but personalism and non-compliance with presidential orders remained. Original data on budget, staff, units, organisational structure, and presidential assignments demonstrates that presidential power should be conceptualised as a polymorphous phenomenon that varies depending on the level of analysis. Researchers should aim to depersonalise their analyses and focus on ‘institutional presidencies’ and ‘centres of government’ instead.
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.
Do businesspeople who win elected office use their positions to help their firms? Business leaders become politicians around the world, yet we know little about whether their commitment to public service trumps their own private interests. Using an original dataset of 2,703 firms in Russia, I employ a regression discontinuity design to identify the causal effect of firm directors winning seats in subnational legislatures from 2004 to 2013. First, having a connection to a winning politician increases a firm’s revenue by 60% and profitability by 15% over a term in office. I then test between different mechanisms, finding that connected firms improve their performance by gaining access to bureaucrats and not by signaling legitimacy to financiers. The value of winning a seat increases in more politically competitive regions but falls markedly when more businesspeople win office in a convocation. Politically connected firms extract fewer benefits when faced with greater competition from other rent-seekers.
Corruption has been a constant factor in Russia’s political economy. From one era to another, the multifarious forms of corruption continue to pervade Russian politics despite sincere and insincere efforts to fight it. The election of Vladimir Putin as president in 2000 brought a new effort at consolidating and organizing authority in the country. However, far from eliminating corruption, politics of the Putin era have merely changed the form of corruption, integrating corruption into the “power vertical” through which Putin governs.
In recent years, corruption has played an ever larger role in the regime’s stability. It serves as a force to co-opt and control the political elite and to replace formal institutions with something more flexible and more amenable to the needs of a consolidated authoritarian regime. Only deep changes, such as higher levels of political competition, have a chance of reducing corruption in the long run. The approaching fourth term of President Putin will continue to increase the role of informal institutions in Russian politics, in which corruption plays an increasingly large role in the Kremlin’s management of the political process.
Public procurement procedures prescribed by legislation not only enhance transparency and competition but also entail certain transaction costs for both customers and suppliers. These costs are important to the efficiency of the procurement system. However, very few previous studies have focused on estimating procurement costs. This paper proposes a methodology for public procurement cost evaluation. We show how procurement costs can be calculated using a formalized survey of public customers. This methodology was tested with a representative group of public customers operating in one region of the Russian Federation. We formulate the policy implications of our study as they relate to the improvement of public procurement regulations and argue that this methodological approach can be applied in other developing and transitioning economies.
This paper argues that understanding the business environment in Russia requires putting the government front and center. In response to economic crisis and falling oil prices, the Russian government has gone on the offensive. Through the use of targeted subsidies, protectionist policies, and procedural reforms, it has worked to stem economic collapse and prop up economic production. Some of these efforts have had a tangible impact on the way business is conducted in Russia, though the list of obstacles private firms still must maneuver is sizable.
However, the most important development over the last decade has been the state’s direct takeover of valuable economic assets and the creation of massive state-owned enterprises (SOEs). This (re)nationalization jeopardizes the economic viability of many private firms by concentrating wealth and opportunities in a small group of well-connected SOEs. Private companies have adapted to this reality by devising a set of political strategies to ensure favorable treatment from the government. From mobilizing their workers during elections to running their directors for political office, these companies understand that remaining on good terms with the government is key to survival. Urgent structural reforms are needed to unwind the government’s role in the economy. Without changes, political connections will remain paramount to generating profits in Russia.
From robocalls to vote buying to electoral intimidation scholars have identified many ways that politicians mobilize voters to the polls. We develop a simple argument about the conditions under which autocrats will use positive inducements such as vote buying and negative inducement such as employee coercion of workers. Using survey experiments and crowd-sourced electoral violation reports from the 2011-12 election cycle in Russia, we find little evidence that vote buying was practiced on a large scale in this election. This finding is consistent with arguments about the decline of vote buying in middle-income countries. Voter intimidation, however, was relatively common, especially among employed voters and in Russia’s many single company towns where employers have much leverage over employees. In these single company towns, the consequences of job loss are so grave that employer intimidation may often be sufficient to induce compliance even without direct monitoring of voter behavior. Outside of company towns where employers have less leverage, active forms of monitoring may supplement intimidation in order to encourage compliance. These results suggest that employers can be reliable vote brokers; that voter intimidation can persist in a middle-income country; and that, under some conditions intimidation may be employed without the need for active monitoring.
This paper examines how Russian manufacturing firms pursue technology innvation in responce to imports. The research is based on the data from two surveys of manufacturing companies performed in 2005 and 2009. The findings show beneficial effects of imports on innovation. The previous involvement in the imports of equipment and intermediates leads to future innovation, and there is evidence of simultaneous choice in favor of imports and innovation in case of equipment. The learning effects from import seem to be higher for product than for process innovations. Firms’ decision to invest into innovation and to import is sensitive to their technological position, pressure from import competition and their efforts to conduct R&D in addition to importing embodied knowledge.
Historical institutionalism has demonstrated the value of close analysis of policymaking to explain institutional change. In particular, scholars have distinguished four different patterns of institutional change: drift, conversion, layering, and displacement. To date, most of this literature has been based on studies of developed democracies. This paper uses a case comparison of pension reform in the two postcommunist giants, Russia and China, to analyze the analogous processes of agenda-setting, bargaining, choice, and policy implementation in bureaucratic-authoritarian regimes. While policymaking in both countries takes place almost entirely within the state bureaucracy, in China, state political authority is much more decentralized than in Russia. I argue that this difference helps to account for the characteristic difference in the patterns of policy change that we observe in the two cases: periodic abrupt reversals in Russia vs. incrementalism and layering in China.
The comparative analysis presents the first comparative study of the government procurement of French and Russian petroleum products with an in-depth review of foreign legal sources and national policy instruments. Based on the findings, this research led to the conclusion that public procurement of hydrocarbons is an extremely sensitive matter in the geopolitical, political and institutional sense. Despite some similarities in the general concept of French and Russian legislation in public procurement, the analysis revealed a substantial difference in the implementation of public procurement policies. Russia is characterized by a predominance of electronic auctions where the evaluation is based solely on the price whereas France uses a wide variety of different criteria to evaluate procurement offers.
We contribute to the debate on the optimal structure of Competition Authorities (CAs), a debate of particular relevance in younger developing country jurisdictions. We propose a model of a reputation-maximizing CA in which reputation is increasing with enforcement success. This predicts that generalist CAs will focus on decisions in activities with low probability of annulment and low investigation and litigation costs and that this could be detrimental to welfare (relative to the more balanced activity portfolio of specialist CAs). We use a data set of appealed decisions of the Russian CA to provide an empirical support for the model’s assumptions and predictions.