Abstract
The reforms in the former Soviet Union have been dominated by a lingering over-reliance on central institutions within the former republics. The economic character and needs of the regions within the republics are not being recognized adequately. Economic powers that are allocated to the subnational level in market economies are not present. Neither the center nor the regions have sufficient resources to restructure the regional economies. This article proposes a system of Associations for Regional Economic Restructuring and Development. Their objective is to establish new enterprises and address the economic and social needs of the region. A key institution is the commercial banks of the associations, which pool and lend funds for these purposes. The associations combine the resources of enterprises, subnational governments, and other organizations within the region to provide both funds and leadership.
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