From Monopoly to Market Maker? Reforming Russia's Power Sector

Abstract

This monograph is part of the "Whither Russia?" series of publications produced by the Strengthening Democratic Institutions Project (SDI), based at the Belfer Center for Science and International Affairs (BCSIA) at Harvard University''s John F. Kennedy School of Government. Funding for this series has been provided by the Carnegie Corporation of New York.

The aim of the "Whither Russia?" series is to illuminate for the international community the ongoing debate in Russia about the country''s identity, security and interests. This monograph seeks to illustrate the environment and prospects for sustainable economic reform in Russia, through a case study of Mr. Brevnov''s experiences as CEO of Unified Energy Systems, the Russian power company that operates the world''s largest energy grid. Key questions addressed in the report include the role of management, the impact of government policy, the role of Western experts and assistance, and prospects for future change. The monograph makes a significant contribution to an understanding of the political context for economic reform in Russia, and the factors influencing prospects for success of such reform. Its conclusions offer lessons and suggestions for the process of implementing effective economic reform programs in the framework of Russia''s emerging market economy and democracy.

The author of the monograph, Boris Brevnov, is currently a Vice President with Enron Communications. His work on this report was conducted while a Visiting Scholar with SDI in September 1998, under the auspices of SDI''s "Whither Russia?" Program. Mr. Brevnov was assisted in the preparation of the monograph by Cameron Half, then a Research Assistant with SDI specializing in business and foreign investment in Russia. Mr. Half completed work on the project while a J.D. candidate at Harvard Law School.

In our efforts to present Western scholars and policy makers with the broadest range of views within Russia and the former Soviet Union, the SDI Project solicits a range of opinions on highly controversial topics. The opinions expressed in our "Whither Russia?" series are those of the authors and do not represent the views of Harvard University, the Belfer Center for Science and International Affairs, the Strengthening Democratic Institutions Project, Carnegie Corporation of New York, or translators and editors.

Graham Allison, Director

Strengthening Democratic Institutions Project