Thus, the United States in the second half of the 19th century is often compared to the development of Russian capitalism in the final decade of this one. But the notion that there are stages of capitalist development that must be negotiated should not be grounds for complacency. If it is to have a prospect of achieving that rapid growth it is going to need to progress faster in establishing market institutions than we ever did. In the 19th century Americans had only the most minimal conceptions of the state's role. Today, people in these countries have very different demands and expectations.
Markets are important.
But they are not enough. The central challenge facing Russia is make government a constructive force in the economy and society. In particular, only the government can enforce the law. It would foster independent judiciaries, effective bankruptcy procedures and other formal mechanisms for enforcing contracts and upholding the law. And it would establish the rigorous accounting standards and protection of shareholder rights that today's global investors expect.