Surrogate Investment System

The article addresses the crucial patterns of redistribution of earnings from effective businesses to ineffective ones, first of all to those closely affiliated with the federal government. The authors concentrate on analysing of what they call a "surrogate (Ersatz) investment system" build up in between the federal budget and big corporations and composed of financial institutions, specialized agencies, free economic zones, and some other elements. They argue that a deep understanding of surrogate investment system’s essence and features is one of the main prerequisites for advancement of the overall effectiveness of Russia’s national economy.