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Table: Russia's Third Way


Khabarovsk Governor Victor Ishayev's formula for stimulating the economy

1. The Ishayev government takes a controlling stake in debt-ridden enterprises mismanaged or looted by the first generation of private owners.

2. With assistance from a local bank part-owned by the Khabarovsk government, the enterprises are reorganized, supplied with financing, and pushed to develop good business practices.

3. The government-owned property is sold or transferred to strategic investors who pledge to replenish capital. Regional administration retreats to roles as regulator, tax collector, and in some cases, credit guarantor.


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