How Does the Political Corruption Affect the Business Environment in Russian Federation?
How does the political corruption affect the business environment in Russian Federation?
ABSTRACT
This paper aims to analyze and describe the influence and the scale of the corruption on business environment in Russia, and the consequences for the society. The paper will start by examining “The Collapse of The Soviet Union and The Rise of Russia” as the prerequisite for the escalation of the corruption among Government officials, the establishment of oligarchic structures and examining the role of domestic business and foreign investors regarding their contribution in corruption practices. Then it will discuss the historical trends of the corruption’s phenomenon, whether the traditions, mentality, and the elite played sufficient role in shaping corrupt-promoting policies, resulting in more than US$240 billion in 2006 for the Russian corruption market. Although corruption is one of the main obstacles to the country's economic development, Russia with its rich culture, which ties its people together, is on the 154th place out of 178 in the Corruption Perceptions Index published by Transparency International.
Finally, the paper will focus on some events, players and ways of corrupting the society and the measures taken by the government and the new middle class to curb this phenomenon.
INTRODUCTION
Many reports, studies and TV programs are stating that corruption is a way of life for Government officials in Russia and bribe-taking is a routine practice throughout the Russian bureaucracy. There are many cases of government officials demanding bribes, also of their connections and even partnership with criminals and others covert business groups. Solving difficulties by bribing officials became some kind of natural policy for doing business for Russian businessmen and for foreign investors, even for the ordinary people too. According to a poll conducted in early 2010, 15% of Russians
ABSTRACT
This paper aims to analyze and describe the influence and the scale of the corruption on business environment in Russia, and the consequences for the society. The paper will start by examining “The Collapse of The Soviet Union and The Rise of Russia” as the prerequisite for the escalation of the corruption among Government officials, the establishment of oligarchic structures and examining the role of domestic business and foreign investors regarding their contribution in corruption practices. Then it will discuss the historical trends of the corruption’s phenomenon, whether the traditions, mentality, and the elite played sufficient role in shaping corrupt-promoting policies, resulting in more than US$240 billion in 2006 for the Russian corruption market. Although corruption is one of the main obstacles to the country's economic development, Russia with its rich culture, which ties its people together, is on the 154th place out of 178 in the Corruption Perceptions Index published by Transparency International.
Finally, the paper will focus on some events, players and ways of corrupting the society and the measures taken by the government and the new middle class to curb this phenomenon.
INTRODUCTION
Many reports, studies and TV programs are stating that corruption is a way of life for Government officials in Russia and bribe-taking is a routine practice throughout the Russian bureaucracy. There are many cases of government officials demanding bribes, also of their connections and even partnership with criminals and others covert business groups. Solving difficulties by bribing officials became some kind of natural policy for doing business for Russian businessmen and for foreign investors, even for the ordinary people too. According to a poll conducted in early 2010, 15% of Russians