Although Russian officials talk about maintaining and developing the technological basis of the economy, recent Russian policies have contributed to the creation of this dual economy. Domestically, a crucial question would be the willingness and ability of the central authorities to tax some of the revenue received by the exporters to use for infrastructure maintenance and redistribution. This tax revenue would also need to be shared across regions, whose exports earning potential is very unevenly distributed. Property Rights Russia's distribution of property rights is unique. As a consequence of the mass privatization path chosen, company insiders own most Russian industry, agriculture, and services.
Employees are quite often majority owners, but managers are always the active owners.
Because there is no previous experience with property rights, any speculation on their economic impact must be tentative. Tend to see their position more in terms of power than as economic agents. Tend to concentrate more on job and social benefit provision than efficiency and structural change, undertaking more defensive than aggressive restructuring. Often see their companies as personal fiefdoms to be exploited for private benefit. Insider ownership thus might be good for jobs but it is bad for efficiency, competitiveness, welfare, and growth.