Fixing Russia's Banks documents how Russia's financial system is
built on what Michael S. Bernstam and Alvin Rabushka call ersatz
banks. These inferior imitation banks have served largely as tools
of the government to redistribute public funds to favored firms.
The highly vaunted achievements of privatization, removal of price
controls, and foreign trade liberalization have failed to produce
growth because of a lack of private financing. National income has
declined nearly 40 percent since 1992, with no recovery in sight.
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