Constraints on Capitalism in Russia: The Managerial Psyche, Social Infrastructure, and Ideology

by David Holt, David Ralston, Robert Terpstra



In the wake of failed coups and political challenges by ultra-conservatives, leaders in the emergent Russian federation face the difficult task of introducing sweeping economic, political, and social changes without provoking a return to Soviet ideology. Russian citizens are uncertain about the benefits of adjusting to a market-based economy, and their social infrastructure is inadequate to cope with new expectations for self-direction and individual responsibilities. At the core of the change process are nearly 75 years of deep-rooted socialist doctrine and a rigid sociopolitical hierarchy through which monopoly power over resources and the means of production were controlled. Until recently, only a select body of the Supreme Soviet or its appointees had authority to make substantive decisions. Today, however, Russia is attempting to transform its economy, which involves repositioning companies as market-driven enterprises. Consequently, managers are being given greater authority and responsibility for organizational performance. Changes in managerial values are a significant element in the socioeconomic transformation in Russia.

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