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Insider Rent Makes Russian Capitalism: A Rejoinder to Simon Pirani

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  • Ruslan Dzarasov

Abstract

The paper provides a rejoinder to Simon Pirani's critique of the insider rent model of the modern Russian capitalism. It is argued that the notion of insider rent as a concrete form of surplus value allows one to grasp the historical dynamics of the Russian society in the 1990s–2000s. The author makes a point that under the favorable conditions of the last decade the strategies of Russian big business largely moved from short-term to medium-term time horizon. However, the system is still based on insider rent extraction. As a result, state functionaries often became large insiders themselves, intra-firm conflicts continue, the country's semi-peripheral status is entrenched, and authoritarianism strengthens. The paper concludes that analysis of the modern Russian society in insider rent perspective demonstrates continuity, rather than disruption, in development of the country s nascent capitalism in the 1990s and the 2000s.

Suggested Citation

  • Ruslan Dzarasov, 2011. "Insider Rent Makes Russian Capitalism: A Rejoinder to Simon Pirani," Journal of Contemporary Central and Eastern Europe, Taylor & Francis Journals, vol. 19(3), pages 585-597.
  • Handle: RePEc:taf:cdebxx:v:19:y:2011:i:3:p:585-597
    DOI: 10.1080/0965156X.2012.665281
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