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Political Economy of Russian Trade Policy:
Early Transition, Customs Unions,
WTO Accession and Protection for Industrial Diversification
David G. Tarr
Adjunct Professor of Economics
New Economic School, Moscow
Paper prepared for conference on
“The Political Economy of Trade Policy in the BRICS”
March 27-28, 2009
New Orleans, La
Abstract: This paper discusses the political economy behind the principal trade policy
decisions in Russia since independence. I discuss why export restraints were widely
employed in the early transition years and why the export quotas proved more difficult to
remove than anticipated. Why it was so difficult to resolve the monetary basis for the
collapse in trade among the newly independent states. Why the search for rents for
Russian industry motivated the creation of a customs union among selected countries in
the Commonwealth of Independent States, but also proved its undoing. How Russian
leaders initially were exceptionally insightful in seeing WTO accession as a golden
opportunity for domestic reform, but why in recent years they have turned to industrial
policy for diversification. I discuss the possibly unique political economy of Russia in
which political contributions are extracted without political influence.
JEL classification: F13; F14; F15 ; K00.
Contact information. Dtarr@
Political Economy of Russian Trade Policy:
Early Transition, Customs Unions,
WTO Accession and Protection for Industrial Diversification
David G. Tarr
In this paper I discuss the political forces and reasoning that have shaped the key
trade policies of Russia since indepe
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