Publication Date
1-1-1995
Document Type
Article
Organizational Units
Sturm College of Law
Keywords
Securities, Russia, Russian securities law
Abstract
Vasiliev's words summed up the process of legal reform of the Russian securities markets since the onset of privatization in 1992. These words amounted to stark recognition that effective and organized markets would emerge only when participants were sufficiently ready for such advancement. In many respects, this required a period of disorganization and abuse, with the abuse itself fostering an environment of reform. The Russian securities markets were abuse ridden and disorganized. No central trading markets existed. Participants operated in an environment devoid of useful information. Managers and outside shareholders had an antagonistic relationship, with constant conflict the norm. Operating companies seeking to raise capital had to compete with businesses running flamboyant television commercials and promising 3,000% returns.
Views emanating from the west, particularly the United States, suggested that the problems be corrected through legal reform.' In other words, the problems resulted from an inadequate legal infrastructure. With the possible exception of crime,3 therefore, the absence of an adequate legal regime amounted to the most common explanation for the economic morass confronting Russia and for the dearth of much needed foreign investment.
Publication Statement
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Originally published as Brown, Order from Disorder and the Development of the Russian Securities Markets, 15 U. Pa. J. Int'l Business Law 509 (Winter 1995).
Recommended Citation
Brown, Order from Disorder and the Development of the Russian Securities Markets, 15 U. Pa. J. Int'l Business Law 509 (Winter 1995).