Table: Russia's Third Way

Khabarovsk Governor Victor Ishayev's formula for stimulating the economy


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


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.


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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