A. Capital Flows to Transition Economies: Reasons, Risks, and Policy Responses.- 1 Introduction.- 2 Capital Flows and their Motivation.- 3 Policy Responses to Capital Inflows.- 4 Conclusion.- Appendix: Figures and Tables.- References.- B. Long Term Structural Change and Productivity Growth in Russia.- 1 Point of Reference.- 2 Strategy for Russia.- 3 Economic Growth and the Investment Climate.- 4 Efficiency, Competition, Institutions.- 5 Macroeconomics.- 6 Domestic Demand and Demographics.- 7 The Widening Technological Gap is a Threat to Russia's Future.- References.- C. Innovation, Growth and Wage Structure in Transforming Economies.- 1 Introduction.- 2 Innovation and Growth: Where do the Transition Countries Stand?.- 3 Learning by Exports: A Feasible Perspective?.- 4 Learning from Asian NICs.- 5 Structural Change and Wage Structure in a Period of Economic Opening up and Growth.- 6 Conclusions.- References.- D. Financial Sector and Human Capital in a Long-Term Growth Perspective: The Case of Russia.- 1 Introduction.- 2 The Importance of Financial Markets and Human Capital from Growth Theory Perspectives and Empirical Evidence.- 3 Conclusion and Policy Options.- References.- E. Structure and Growth of Private Consumption in Russia and East Germany.- 1 Introduction.- 2 Statistical Definitions of Private Consumption.- 3 General Factors Influencing Private Consumption.- 4 Structure and Growth of Private Consumption in East Germany.- 5 Final Consumption in Russia.- 6 Conclusions.- References.- F. Labor Market Transformation and Hidden Unemployment in Russia.- 1 Introduction.- 2 The Main Features of the Labor Market.- 3 Employment/ Unemployment Statistics in Russia.- 4 Hidden Unemployment.- 5 Enterprise Behavior and Employment Policy.- 6 The Case of St. Petersburg.- 7 Concluding Remarks.- References.- G. Principles of Market-Oriented Labor Market Policies.- 1 Introduction.- 2 The Case for Active Manpower Policy.- 3 Active Labor Market Policy in the United States.- 4 Evaluation of U.S. Employment and Training Programs.- 5 Interpretation of the U.S. Evidence.- 6 European Evidence.- 7 Concluding Remarks.- References.- H. Rent-Seeking and Rent-Setting: Government Versus Competition (The Case of St. Petersburg).- 1 Introduction.- 2 Industrial Policy and Rent-Seeking.- 3 Rent-Seeking Through Social Merit.- 4 The Vesting of Monopoly Power.- 5 Licensing as Rent-Seeking.- 6 Protectionism.- 7 Conclusion.- References.- I. Powerful Groups and Corruption.- 1 Introduction.- 2 The Power Index Model.- 3 Conclusion.- References.- J. Regional Dimension of the Market Transformation in Russia.- 1 Introduction.- 2 Nonmarket Characteristics of the Russian Economic Space.- 3 Political and Economic Factors of Decentralization.- 4 Characteristics of the Economic Policy Pursued by Subjects of the Russian Federation.- 5 Some Results of Decentralization.- 6 A Change in the Federal Center's Position and Imperatives of the Regional Policy.- 7 Political Imperatives of Harmonizing Economic Relations between the Center and Regions.- K. Foreign Trade Policies in Transformational Russian and Ukrainian Economies.- 1 Introduction.- 2 Global Capital Movements and Capital Flows.- 3 Foreign Trade Policies in Russia and Ukraine in Transition.- 4 Foreign Trade Policy Instruments.- References.- L. The Role of Foreign Direct Investment in Transformation.- 1 Theoretical Background.- 2 Statistical Background.- 3 Determinants of FDI and Projections for Selected CIS and other Eastern European Countries.- 4 FDI, Capital Formation, and Structural Change.- 5 Conclusions.- References.- M. Data Appendix.- List of Figures.- List of Tables.- List of Contributors.- Biographies.