Conference e-mail

The Aleksanteri Institute

Unioninkatu 33 (P.O. Box 42)
00014 University of Helsinki

Past Aleksanteri Conferences

Nicole Krome (Free University Berlin, Germany)

Utopias of Modernisation

The conference shows a variety of possible pathways to modernization until the year 2030 for the Russian Federation. However, my research leads to the conclusion that Russia does not really have much choice left. During the last years, an anti-modern, highly distorted system of incentives and sanctions has developed. The inherent dynamics of this system do not leave much room for the reforms needed. The article focuses on these inherent dynamics and their influence on the process of modernization, examining high-tec companies as part of state corporation Rostec and the aviation corporation UAC (United Aircraft Corporation/ OAK (Ob`edinennaja Aviastroitel`naja Korporazija). The analysis concentrates on the informal systems of interaction (networks) as well as state institutions respectively the administrative system. Both elements are regarded as incessantly essential to the Russian social system. Based on case studies, company reports, corporate information, legislation and press coverage, I will reveal the various systems of incentives and sanctions of the relevant players in politics, administration and economy. I will analyse to what extend they target productive economic growth and innovation, and to what extend they support or block each other. A comparison of the Soviet and post-Soviet periods shows the particular conditions required for their compliance, and at the same time illustrates the importance and continuity of the logic of informal networks. The article concludes in an explanation why the high hopes in a government regulated modernization under Putin had to be dashed and which are the most important lock-in effects.