Russia's biggest problem- Corruption?

[welsh]

Who has the most criminal of careers?

According to Russians-

So what's this about corruption in Russia?

Corruption in Russia

Blood money

Oct 20th 2005 | MOSCOW
From The Economist print edition
AP

From terrorism in the north Caucasus to the boardrooms of Moscow, corruption is Russia's biggest problem

TWO shifty businessmen and one huge bodyguard carrying a large bag enter Vladikavkaz airport, a stone's throw from the cemetery in which the victims of last year's terrorist atrocity at Beslan are buried. They whisper to an airport official, who takes their documents and sees to their check-in. The three men and their un-X-rayed bag are next seen heading for their plane from a side door in the terminal.

Caught out by an obscure regulation, a driver tells a Moscow traffic policeman that he wants to settle things quickly, but without breaking the law. “Too many things are illegal in our country,” grumbles the cop, implying that a more sensible government would make bribery legal as well as universal. So how much does he want? “Give me what your soul tells you.”

Those recent examples are from your correspondent's experience—but corruption in Russia is everywhere. Often, it seems not a by-product of policy and events, but the main reason for them, a stronger force even than resurgent nationalism. It poisons people's relations with the police, bureaucrats and politicians (see chart). And it appears to be getting worse.

Being covert, the precise dimensions of corruption are hard to measure. But trends are discernible. In the latest international “corruption perceptions index” produced by Transparency International (TI), a watchdog, Russia has fallen to rank alongside Niger, Sierra Leone and Albania. A recent survey by Indem, a Russian think-tank, found an enormous hike, since 2001, in the number and size of bribes given by young men and their families to avoid conscription and, relatedly, in those paid to get into universities. (Fixing a court case, Indem found, has got a bit cheaper.)

Damn, as bad as Sierra Leone? That's fucked up.

Within the armed forces, the graft is astonishing. Andrei, a conscript from Novosibirsk, recalls that his unit was forced to raise cash to buy a car for an officer, by begging and selling purloined military kit. Russia's defence minister was recently obliged to issue a special order designed to stop officers hiring troops out as day labourers, and using them to build dachas.

Indem's most controversial finding was a surge in the volume of bribes paid by businesses, to a total amounting to more than double the federal budget. An exaggeration perhaps; but most businessmen confirm the deterioration. The difference now, says the boss of one building firm, is that bureaucrats take the cash, but don't then interpret the opaque regulations in the way they had promised—the most economically damaging kind of corruption, according to academic studies.

Forbidden means expensive
Another Moscow-region developer estimates that 10% of his costs go in bribes: a project requires 50 licences, and every licence needs a bribe. “It's like the last days of Pompeii,” he says, adding that at least the uniformed extortionists have squeezed out the organised bandits. Big business is less talkative, but no cleaner. Nigeria was good training for Russia, says a western executive. To put it in another way, Russia is a country where top state officials live luxuriously and make decisions which have no innocent explanation.

This can't be good.
And if shit rolls downhill, the problem comes from the top.

Faced with a problem that it cannot credibly deny, the usual Kremlin approach is to say that it is not a problem for Russia alone. This has been President Vladimir Putin's attitude to corruption; it is, he says, an issue in all transitional countries. But Russian corruption has some peculiar characteristics. It is partly an age-old function of the country's size and poverty: the tsar in Tolstoy's “Hadji Murad” is convinced it is “a characteristic of officials to steal”. Communism bequeathed little regard for private property or civic duty, and left big networks of patronage dating back to institutions such as the KGB. Next came wholesale privatisation amid weak regulation, and lots of oil money. An optimistic view is that these effects will wear off. Indem did find that even as state officials get greedier, public aversion grows—for instance over the cost of “free” hospital care (though some bribes may simply have become unaffordable).

Interesting to note that most countries that deprive substantial sums of foreign exchange and earnings from the extraction of natural resources- oil, diamonds, steel, have corruption problems.

But Russian corruption doesn't just make life inconvenient, or hold back the economy: it kills people. When two aircraft blew up after taking off from Moscow last year, investigations revealed many ways in which bombs could be put on planes for cash. After the Beslan attack, reporters in Moscow proved it was possible to obtain official documents while using a photograph of Aslan Maskhadov, the Chechen leader who was later killed. The Beslan hostage-takers are thought to have bribed their way across internal borders. And how did over a hundred militants gather and arm themselves before launching the city-wide battle that struck Nalchik, not far from Beslan, last week? “How can we withstand terrorism,” asks Vladimir Lukin, the human-rights ombudsman, “with such a level of corruption?”

That's a lesson for all countries. The line between terrorism and crime is a thin one. Where crime is endemic, than terrorism has a better chance.

Perhaps then, terrorism should be seen a a form of crime fighting and not a "war".

Except it might be easier to deal with terrorists that corruption.

It has also prolonged and aggravated the terrorists' main grievance: the conflict in Chechnya. Poor as the region is, it is lucrative: there are kidnappings, many of them, says Mr Lukin, corruption-related; embezzlement of reconstruction money; smuggling; and even, it is said, arms sales by the army to insurgents. Elsewhere in Russia, security services are said to control poaching and prostitution.

Across the north Caucasus, corrupt local elites have monopolised the economy. The new president of Kabardino-Balkaria, of which Nalchik is the capital, this week conceded that unemployment and “not being able to start up one's own business without links to the authorities” had pushed youngsters towards militant Islam.

This is beginning to sound a lot like Africa.
Except colder.

The cost in lives is one reason why corruption in Russia is not, as some say, an efficient way to live with over-regulation. Corruption, says Mikhail Grishankov, chair of a parliamentary anti-corruption committee, offers the same efficiency as the justice system in “The Godfather”. Paying up encourages further extortion, ultimately raising costs all round. Worse, the traffic policeman who takes your bribe may take one next from a drunk—or a terrorist. In a country where money talks, it is easy to deliver a bomb, says Elena Panfilova, of TI's Russian chapter.

Corruption, says Georgy Satarov of Indem, is like pain, a symptom of other problems. In Russia, they include a neutered parliament, subservient (and sometimes intimidated) media and a suborned judiciary. But experience elsewhere suggests that measures short of wholesale democratisation have some impact. Rasma Karklins, of the University of Illinois at Chicago, says “islands of integrity” can be established in regions or institutions; high-profile prosecutions can help.

Since corruption was a key motive behind the revolutions that have ousted three post-Soviet regimes in the last two years, the Kremlin should worry. It has tried raising some official salaries; corrupt bureaucrats, like the taxman arrested in Moscow this week for soliciting a $1m bribe, are sometimes punished. But in general what Ms Karklins calls a system of “mutual blackmail” seems to prevail. Officials are promoted because of, not in spite of, their corruption, which makes them pliable. “A corrupt official is a more loyal official,” says Ms Panfilova. Punishment happens when spoils aren't shared, or an official steps on to somebody else's turf.

Consider Mikhail Kasyanov, prime minister and head of the (inert) presidential anti-corruption council until his ouster last year. After signalling his own presidential dreams, Mr Kasyanov faced damaging allegations—of corruption.

My sympathy to the Russians.
And for the rest, I think there are lessons to learn here.

 

[Tannhauser]

Err... this is news?

It seems more like a recap of what people should know.

 

[Lazarus Plus]

In terms of corruption to size, Russia has been the worst nation in the world for nigh on ten years. Shit.

 

[The Commissar]

More then 10 years I'd say. That level of corruption predates Soviet times.

Anyways, this is hardly news. Unless you're making some kind of potential tourist public announcment.

Planning a trip to the Motherland Welsh?

 

[John Uskglass]

More then 10 years I'd say. That level of corruption predates Soviet times.

Corruption predates the Streltsy. Hell, I'm willing to bet Russian Dinosaurs 80 million years ago would do anything for an electric watch and several hundred American dollars.

 

[Loxley]

"Uri Uri"

From a purly machvallian point of view I feel that this is a good thing, since it keeps the russian bear sick and weak.

 

[4too]

Follow The Money

Follow The Money




So can we expect the best and the brightest to emigrate to the USA,

Or will the US out source that industry too?






4too

 

[John Uskglass]

4too says something stupid.

Lauren insults someone in a freightning and over the top comment.

Welsh posts 8 topics on the same day.


Such is the way of NMA.

I wish you Mercantalists had all jumped off a ship in the middle of the ocean in the 18th Century.

 

[The Vault Dweller]

I wish you Mercantalists had all jumped off a ship in the middle of the ocean in the 18th Century.

That shouldnt be too hard since they are...

...freightning...

Get it? Mercantalists...freight?

LOL,
The Vault Dweller

 

[The Commissar]

4too says something stupid.

Lauren insults someone in a freightning and over the top comment.

Welsh posts 8 topics on the same day.


Such is the way of NMA.

I wish you Mercantalists had all jumped off a ship in the middle of the ocean in the 18th Century.

Deus Vult! Deus Vult!

P.S.

When did I insult someone in a frightening and over the top way?

 

[Tannhauser]

I don't rate a mention?

 

[welsh]

No because the question is not whether this is news.

If all you count on as worthwhile is news that you are missing a lot.

News is just topical. It's the fashion of the moment.

But its not insightful and it doesn't necessarily raise issues worth discussing except in the individual case.

Your news perhaps an assembly of a data set, a collection of observations or cases from which to draw relationships and extract generalizations.

It's when you put it all together that you start to see big pictures.

The question for this is why has Russia become so corrupt? Has this historically predestined(as if that term exists)? How to overcome Russia's rampant corruption.

I mean, for fuck's sake, this is a European state (at least in part) that is becoming increasingly like Africa (where the state hardly matters at all).

About Commisar- no I was not insulted. Though I would like to hear your thoughts on Close Combat Russian Front (playing the Close Combat 2 game in the offensive now- very cool).

@ John- I am off for a few days so figured I might post happy. Very busy these days so figured best to do my posting all in one flurry.

 

[4too]

Post Modern

Post Modern

J U:

4too says something stupid. ...

Et tu, Johnny?

""STOOPID?""

Trying for ''silly'', ... another failure to ... commiserate.

[4too: Single dramatic sigh.] .... [Chorus: Short low dramatic sigh.]




Just figured it would be ""lucrative"' to encourage the ''best and the brightest'' of all forms of commerce, legal and illegal, to compete in our
post modern marketplace.

When compared in this brave new post modern WORLD WIDE economy, Americans are over paid especially in THE WAGES OF SIN!!!!


Could bid out the street AND the white collar crime.




AND, if we could out source crime and convictions to other jurisdictions we could save our treasured prison space for POST EDUCATIONAL TECHNICAL training to serve our growing school drop out demographic in ...

[Drum machine; straight line 8 beat .]

Yo, Llivin' large like they ought-a , a starin' role in grand theft aut-a ..






4too

 

[[Rusty Chopper]]

The question for this is why has Russia become so corrupt? Has this historically predestined(as if that term exists)? How to overcome Russia's rampant corruption.

The main problem is, Russia has never been a democratic state before (except the medieval city of Novgorod).
These 15 years have shown, that democracy does not suit Russia.
The Russian mentality itself is against democracy. Serfdom was abolished only in 1861. The last tsar was shot in 1918. Then came the Soviet Empire of Lenin and Stalin and their glorious descendents...
Russians believed tsars because they were thought to express the will of the God. Russians believed Stalin. Russians believe Putin.
Democracy can not base on trust alone, but it does in Russia. Hence the notorious corruption.
The only way out I see is to reintroduce monarchy or something like that. Maybe bring back the general secretary.

That may look like complete bullshit to you what I've just said. But that's my point of view. Anyways I'm far from joking as the problem's too damn serious and nobody knows where will Russia end up. We're losing a million people every year. Some experts say we've already passed the point of no return.

 

[Brother None]

The main problem is, Russia has never been a democratic state before (except the medieval city of Novgorod).

We've heard this argument before. There's too much wrong with calling Novgorod democratic or insisting that something like a "democratic tradition" even exists to go into it in too much depth.

These 15 years have shown, that democracy does not suit Russia.

These 15 years have shown that democracy is not something that you can universally slap onto countries in a uniform way. It has shown little more.

Serfdom was abolished only in 1861.

Serfdom wasn't slavery, and abolition of slavery in Western countries has dates like 1833 (the UK), 1848 (France), 1863 (the Netherlands), 1865 (the US). Hell, the only "old abolitioner" is Sweden, who removed slavery (though not in some colonies) in the 14th century. Russia is hardly behind the rest here.

The last tsar was shot in 1918.

Some of us still have our tsars.

Then came the Soviet Empire of Lenin and Stalin and their glorious descendents...

Yes, which is the only really relevant bit of development. Without the Russian revolution and following communist times, I hardly think the older arguments would carry as much weight as they do today

Russians believed tsars because they were thought to express the will of the God. Russians believed Stalin. Russians believe Putin.
Democracy can not base on trust alone, but it does in Russia. Hence the notorious corruption.

Democracy generally is based on trust alone. And a constitution.

The only way out I see is to reintroduce monarchy or something like that. Maybe bring back the general secretary.

What nonsense. What would that solve? Russia is already ruled simply by the infamous Moscow and St. Petersburg groups. I hardly think further regression away from democracy would help.

But that's my point of view. Anyways I'm far from joking as the problem's too damn serious and nobody knows where will Russia end up. We're losing a million people every year. Some experts say we've already passed the point of no return.

Russia continuing population-regression is not directly tied to the above-mentioned problems. But it is a transitional problem, and a fairly relevant one at that.

Welsh, a fine article. Though it is a fact of life that corruption in Russia tops with customs, which is also where the maffia heavily resides. The amount of money in bribes that goes through customs is amazing.

 

[John Uskglass]

We've heard this argument before. There's too much wrong with calling Novgorod democratic or insisting that something like a "democratic tradition" even exists to go into it in too much depth.

The cossacks?

These 15 years have shown that democracy is not something that you can universally slap onto countries in a uniform way. It has shown little more.

Fair enough. Liberal democracy is obviously not a cure all.

Serfdom wasn't slavery, and abolition of slavery in Western countries has dates like 1833 (the UK), 1848 (France), 1863 (the Netherlands), 1865 (the US). Hell, the only "old abolitioner" is Sweden, who removed slavery (though not in some colonies) in the 14th century. Russia is hardly behind the rest here.

I think the greater problem that RC is talking about is the fact that the vast majority of Russians still lived in an effectivley feudal society without even an effective Burgher class to try to head reforms.

Some of us still have our tsars.

Buahahaha, too true.

Democracy generally is based on trust alone. And a constitution.

I can't agree with you there. The heart of Democracy is making the mass of stupid people smarter then the sole stupid person by free speech and increasingly informed discourse. Sola fide Democracy is nto democracy but Totalitarianism.

What nonsense. What would that solve? Russia is already ruled simply by the infamous Moscow and St. Petersburg groups. I hardly think further regression away from democracy would help.

Leo Strauss would argue that in this case Imperialism could be justified. I think.

 

[Jarno Mikkola]

Democracy generally is based on trust alone. And a constitution.

The Democracy is based on the fact that everyone is equal, nääh, it's not.
It is based on the principle that everyone is as worthy as anyone else in the society.
If you can do something better than anyone else, it is better for the whole society that you can and will do it, than that you won't do it, and all the crap fall up and down the latters. And if you can't, then you are trained to do something beneficial.

And remember that even the corruption has it's own kind of democracy, it's just based on the power of money, which is in, its base, and based on the world wide capitalism.

 

[welsh]

Equality or Trust? Or about accountability and property?

I would think that the issue of trust is a consequence of social behaviors that expand the notion of a civil society in which individuals feel secured in their transactions with each other.

Equality- protects property. In an unequal society individuals have more power to take away your property and harm your interests. In an equal society, such movements should be checked by interested members who work to safe guard their property interests.

Why? Perhaps because the selfishness of people and the limits of material goods- each individual struggles to maximize their share of distributive wealth. They use what tools at their disposal to further their interests. If society is heirarchically organized, those at the top have more power to withhold property or seize from those below them.

Therefore we can see democracy as a consequence of historical sequences in which those ranked lower on the heirarchy of society bargain with those higher up to gain greater property and entitlement to participate in the political system.

Perhaps that's a Marxist way of thinking about this, but consider the relationship between the needs of labor from the industrial revolution and then conscription for national armies and the expansion of worker's rights and voting rights for different ethnicities and poorer folks.

So democracy- perhaps whether it exists or not has more to do with power that exists among social groups to either gain a greater share of material wealth or secure their rights to property. Where the power of social groups is more diffuse in society- you are more likely to get democracy and all the trappings that come with it- equality, civil rights, protection of property, constitutions that formalize political interactions. Give that a bit of time and you get trust.

So perhaps the problem is Russia is not trust or democratic traditions, but the variation of power between different classes, a problem that predates Putin and probably Lenin.