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The presented study summarizes the results of the implementation of liberal market reforms in Russia and reviews tools of the market economy that could solve the problem of distrust within Russian society.Aim. The study aims to define the underlying problems that stem from the peculiarities of the historical development of the Russian Federation and now hinder the advancement of our country to a new level of development, and to propose directions for solving these problems.Tasks. The authors summarize the socio-economic consequences of the implementation of liberal market reforms; define the problems of the implementation of a rent-based economy in modern Russia; prove that Russia cannot advance to a new level of development without solving the problem of social distrust; review the tools that could change the current situation of global social distrust (publicprivate partnership, proactive budgeting, clusters, territorial marketing, Far Eastern Hectare program, smart cities, incident management).Methods. This study uses general scientific methods of cognition to examine the results of the implementation of liberal market reforms, identify the problems of modern Russia, and determine the possible directions and tools of development.Results. Russia’s development is historically based on finding and living off the natural rent. This perspective significantly narrows the range of ideas about the potential development directions for the Russian Federation. The rent-based development options proposed today expose another common Russian trait — uncertainty, lack of risk appetite, pessimism, and fear of “things getting worse”. Implementation of democratic reforms in the context of rent-based economic institutions, lack of mutual trust within society, poor performance of courts — all this aggravates the current situation.Conclusions. Nowadays, Russia needs an economy that would create a demand for human capital and inclusive political institutions that would make people engaged in the life of the nation, allowing them to capitalize on their creativity without leaving their homeland.

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