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Resources - a public, rival, non-excludable good. The problem: inefficient use; the tragedy of the commons.
Solution: privatization and taxation, i.e. use the market mechanism to improve efficiency, avoid the tragedy of the commons. Use taxation to provide public goods. == The Eltsine reforms.
Resource – a private, rival, excludable good. The problem: no taxes generated; corruption.
Solution: nationalization, i.e. state ownership to improve tax collection, reduce corruption. == The Khodorkovsky trial.
Resource - a public, rival, excludable good. The problem: inefficiency, no rule of law, government nepotism, i.e. taxes collected no longer cover losses from inefficiency and nepotism.
Solution: private, rival, excludable good; the rule of law (other mechanisms(?), e.g. communist party control, democracy, moral/religious authoritarianism, foreign monitoring ?) to prevent corruption and government nepotism. == The Putin trial.
Unless the rule of law is established, the system will oscillate b/w market-induced corruption ("oligarchy") and nepotism (Sechin/Rasputin).
Solution: privatization and taxation, i.e. use the market mechanism to improve efficiency, avoid the tragedy of the commons. Use taxation to provide public goods. == The Eltsine reforms.
Resource – a private, rival, excludable good. The problem: no taxes generated; corruption.
Solution: nationalization, i.e. state ownership to improve tax collection, reduce corruption. == The Khodorkovsky trial.
Resource - a public, rival, excludable good. The problem: inefficiency, no rule of law, government nepotism, i.e. taxes collected no longer cover losses from inefficiency and nepotism.
Solution: private, rival, excludable good; the rule of law (other mechanisms(?), e.g. communist party control, democracy, moral/religious authoritarianism, foreign monitoring ?) to prevent corruption and government nepotism. == The Putin trial.
Unless the rule of law is established, the system will oscillate b/w market-induced corruption ("oligarchy") and nepotism (Sechin/Rasputin).