The Failure of Market Reforms in Russia: Competing Paradigms of Information Economics and Neoclassical Economics

Abstract

This manuscript is the second of two papers exploring the transition from centrally planned to marketbased economies. The first paper published in the previous issue of the Journal of Applied Business investigated the new information paradigm applied in China. The current paper focuses on the failures of the “Washington Consensus” paradigm based on the old neoclassical paradigm and applied in Russia. As in the previous manuscript, this study supports the argument that markets cannot be efficient without government regulation, intervention, social institutions and effective public administration.