1999 by Slavic Research Center ,Hokkaido University. All rights reserved.
FIGs usually embrace one or several banks and one or several industrial enterprises.
Looking at how Russian enterprises are transformed into FIGs, I focus on the process of reforming systems of control and incentives over savings and investment decisions. In the Soviet era, after 1973, enterprises and production associations were under the control of ministries or so-called industrial associations. At that time, production associations were recognized as legitimate industrial groups, but there were no FIGs. But under the power of Gorbachev, he decided to open brand-new businesses, which meant the first step to the market economy. Branch ministries and other hierarchical structures still existed exerting a strong pressure on enterprises.