Social Learning through Process Improvement in Russia Tatyana A. Medvedeva1 Stuart A. Umpleby Department of Economics Department of Management Science Siberian State University of Transport The George Washington University Novosibirsk, 630049, Russia Washington, DC 20052, USA email:
[email protected] email:
[email protected] Abstract factor. Do people trust the direction of the reforms? Do people feel the changes are desirable? Do people feel The Russian people are struggling to learn how to included in the decision-making process? create a democracy and a market economy. This Trust in government, an essential element of a social paper reviews the results of reform efforts to date change process, was seriously damaged. In August 1991 and what the Russian people are learning as during the struggle against the Government Committee indicated by changes in answers to public opinion on the Extraordinary Situation, the Russian people surveys. As a way to continue the social learning confirmed their desire to change Russian society in the process in Russia we suggest the widespread use of direction of democracy and a market economy. They process improvement methods in organizations. defended their choice. Blood was shed. They This paper describes some Russian experiences in demonstrated trust that the political elite would using process improvement methods and proposes implement reforms. But in 1992 people lost their a strategy for spreading the use of these methods savings when the currency was devalued. This was through universities and then through businesses money that people had saved for many years for their and government agencies. As people use process retirement. The goverment under Gaigar offered no improvement methods, they gain confidence in explanation, even though alternative means exist to their ability to improve the functioning of decrease the quantity of money in circulation.