nep-cis 2006-02-26 papers

on Confederation of Independent States

Issue of 2006‒02‒26
two papers chosen by
Anna Y. Borodina
Perm State University

How to Sustain Growth in a Resource Based Economy?: The Main Concepts and their Application to the Russian Case By Rudiger Ahrend
Russian Attitudes Toward Paying Taxes – Before, During, and After the Transition By Benno Torgler; James Alm; Jorge Martinez-Vazquez

How to Sustain Growth in a Resource Based Economy?: The Main Concepts and their Application to the Russian Case

By:	Rudiger Ahrend
Abstract:	In recent years economists have come to see rich natural resource endowments as a ?curse? or ?precious bane? that inevitably undermines development and slows economic growth. Resource-based development undeniably involves important risks. Nonetheless, the resource curse - if it exists - is at least no fatalité, as the examples of Australia, Canada and the Scandinavian countries demonstrate. This paper argues that the serious challenges posed by resource-dependence, which include an increased vulnerability to external shocks, the risk of ?Dutch disease?, and the risk of developing specific institutional pathologies, can be overcome, or at least very substantially mitigated, if accompanied by the right economic policies. It then analyses in detail what these ?right? economic policies are, and how to set up economic and political framework conditions to facilitate their successful implementation. The paper thereafter looks specifically at Russia as a prominent example of a resource-based economy. It investigates briefly the main drivers of Russian growth in recent years, and makes specific recommendations that would help the Russian economy to sustain high growth. <P>Comment soutenir la croissance dans une économie fondée sur l'exploitation des ressources naturelles ? Ces dernières années les économistes ont commencé à envisager la dotation en ressources naturelles comme une "malédiction" qui inévitablement mine le développement économique et freine la croissance. Le développement économique fondé sur l'exploitation des ressources naturelles comporte sans aucun doute des risques importants. Cependant, la malédiction des ressources -- si elle existe -- n'est pas toujours une fatalité, comme le montre les exemples de l'Australie, du Canada et des pays scandinaves. Cet article soutient que les défis sérieux posés par une forte dépendance envers les ressources naturelles - comme une vulnérabilité accrue aux chocs externes, le risque d'un "syndrome néerlandais" et le risque de développer des pathologies institutionnelles spécifiques - peuvent être maîtrisés, ou au moins très sensiblement amoindris, s'ils s'accompagnent de politiques économiques adéquates. L'article analyse en détail ces politiques économiques "adéquates", et comment mettre en place un cadre politique et économique qui facilite l'implémentation réussie de ces politiques. Le cas de la Russie est ensuite étudié comme un important exemple d'une économie fondée sur l'exploitation des ressources naturelles. L'article examine brièvement les principaux moteurs de la croissance de ces dernières années, et formule des propositions qui pourraient aider la Russie à maintenir une croissance forte.
Keywords:	economic growth, croissance économique, transition, transition, fiscal policy, politique budgétaire, monetary policy, politique monétaire, Russia, Russie, capital flight, natural resources, dutch disease, resource curse, oil, diversification, ressources naturelles, syndrome néerlandais, malédiction des ressources, pétrole, diversification
JEL:	E6 O1 O52 P2 Q43
Date:	2006–02–09
URL:	http://d.repec.org/n?u=RePEc:oec:ecoaaa:478-en&r=cis

Russian Attitudes Toward Paying Taxes – Before, During, and After the Transition

By:	Benno Torgler (World Bank); James Alm (Andrew Young School of Policy Studies, Georgia State University); Jorge Martinez-Vazquez (Andrew Young School of Policy Studies)
Abstract:	This paper examines citizens’ attitudes toward paying taxes – what is sometimes termed their “tax morale”, or the intrinsic motivation to pay taxes – focusing on the experience of individuals in the Russian Federation. A unique aspect of our analysis is our ability to study tax morale before (1991), during (1995), and shortly after (1999) the transition of the Russian economy from a centrally planned economy to one based on market reliance. Our empirical analysis uses data from the World Values Survey and the European Values Survey. The results show decay in tax morale in the first four years of the transition from 1991 to 1995, and a small recovery in 1999. These results are consistent with the relevance of social norms in tax compliance, where the widespread perception of tax evasion and of a corrupt and inefficient state led initially to a decline of tax morale. However, the results also suggest that the restoration of a higher level of trust in the state, after some progress in the transition to a market economy, positively influenced tax morale. Using disaggregated data for Russian regions, we also find significant regional differences in tax morale, reflecting the degree of trust different regions have toward Moscow’s institutions and policies.
Keywords:	Russia, Taxes, Transition, Tax Morale
Date:	2005–09–05
URL:	http://d.repec.org/n?u=RePEc:ays:ispwps:paper0518&r=cis

This nep-cis issue is ©2006 by Anna Y. Borodina. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.

General information on the NEP project can be found at http://nep.repec.org. For comments please write to the director of NEP, Marco Novarese at <director@nep.repec.org>. Put “NEP” in the subject, otherwise your mail may be rejected.

NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.