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Corruption in Russia - Essay Example

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Post Soviet Russia and the Russian Economy have been considered by many to be a peculiar phenomenon, as the new country has not only been able to survive but it has displayed significant progress in the economic conditions. However, it seems that while the government was making…
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Corruption in Russia
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Corruption in Russia

Russia is one of the “G8” countries. The G8 group’s interim compliance report,1 at the Sea Island Summit in 2004, mentions Russia’s failures in controlling the levels of corruption while translating its undertakings into action. As on the date of the report, Russia had not ratified the U.N. Convention against corruption2 though action to ratify had been under way. The report says that corruption in Russia has become so pronounced that, the country has gone down to 90th position in Transparency International’s Corruptions Index in 2004. It had been already at the 83rd position in 2003.3 It makes a passing reference to President Putin’s handling of affairs of Russia’s second largest oil company ‘Yukos’ which has since been taken over by the Government.4
Vladmir Popov in his article “Russia Redux’ referred to new Russia as the “Shock therapy era” characterized by huge economic, political and human costs. The article further stated that the country is far better than it was seven years ago but worse than it was twenty years ago alluding to Boris Yelstin’s turbulent years marked by moral bankruptcy. Russia’s GDP, investment and life expectancy figures are yet to reach at 1989 levels. President Putin’s priority has been to regain the lost institutional capacity of the state and stability via re-centralization. Despite best efforts the country has not been able to do much for equitable distribution of wealth. 46.6 percent of wealth is concentred in the hands of 20 per cent of the population. The informal practices which Georgi Derlugian attributes to ‘persistent under-institutionalisation of Russian life’, have been the breeding ground of corruption at all levels in Russia. The absence of institutions has opened up avenues of personalism and nepotism. During the years from 1996 to 2000, Oil Company of Kursk Oblast, pharmacies, public security and cultural affairs were under the control of the then-governor Alexander ... Read More
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