NAME __________________________ Chapter 2 UNDERSTANDING FORMAL INSTITUTIONS: POLITICS, LAWS, AND ECONOMICS CLOSING CASE – THE RUSSIAN PUZZLE 1. Does the Russian experience support or refute the claim that democracy is conducive to economic growth? 2. Although a stable legal framework that protects property rights reportedly can remove uncertainty and thus facilitate economic growth, the government’s protection of oligarchs is not without controversies. If you were to advise the Russian government on property rights reforms, what would be your advice? 3. If you were a board member at one of the major Western multinational retailers (such as Carrefour, IKEA, Metro, or Wal-Mart), would you vote yes or no for a new project to set up your firm’s first major store in Russia and explain why?