Why Is Russia's Productivity So Low?

On the face of it, Russia's economic performance over recent years has been impressive. But today, amid plummeting gross domestic product and sharp falls in industrial production, there's a new awareness that Russia's economy is also beset by deep-seated problems. Despite almost two decades of market reforms, the country's labor productivity, a key indicator of overall economic efficiency, remains one of the lowest among industrialized nations. Several studies have been published recently underscoring the scale of the problem.

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