Customer Reviews

Privatizing Russia

5 star:		(0)
4 star:		(2)
3 star:		(1)
2 star:		(0)
1 star:		(0)

 

 

I had to read this book for a class. I wouldn't do it for fun unless learning about Russian economic reform was my thing. The book is dry with details, but actually rather interesting in the way it turns Russian privatization into a political chess match of strategies and battles. I learned A LOT from this book. It is well-structured and logical in its presentation, which leads to greater understandability, even for someone with a limited background in economics. Anyone who understands more about economics than me would find it absolutely fascinating, I'm sure.

Shlefier et al offer a simplified theoretical approach to privatization, and defend it with simple, repetitive description throughout what reads like a long and under-footnoted, non-technical paper. The simplified theory is not really controversial, but despite what they may believe, it does not explain everything nor is it the only way to look at the situation.

They present the problem as more or less solved. They seem very proud of themselves, and over-confident, though in the conclusion they temper it a bit. Very few statistics are presented and many claims are made that are not supported with citation - disappointing as it would be interesting to follow up on them. So, instead of an analysis and a starting point, the book reads as a policy paper presented to the funding source: "Look, we had a theory, we were right, everything is going swimmingly - please give us more money."

Compare this to "Poland's Jump to the Market Economy" which presents dozens of tables of statistics from before and after the transition began, covering standard of living, employment, different sectors and sizes of firms and status of privatizing. Rather than focus so much on whether his own pet theoretical point of view was defensible, Sachs presented cautious but optimistic facts about Poland's progress. And consider which country is actually doing better today.

However, the theory is interesting, and the book is quite readable. It isn't worthless, it is interesting. I can't give it less than 3 stars, that would just be mean.

Shleifer and Vishny are my personal heroes when it comes to the Russian Privatization program. The authors have written a wonderful book that gives sound economic and political understanding of the program from start to finish.