Russian Mafia
How Russian Mafia Influences Russian Economy
Alena Nekrashevich
Economics 201
Nicolas Pologeorgis
NOVA College
1 December 2012
Table of Contents
Abstract…………………………………………………………………………………….3
The Birth of the Russian Mafia…………………………………………………………….4
Protectionism………………………………………………………………………………4
Weapon Power of the Thieves in Law…………………………………………………….5
The Mafiosi Influence over Bureaucratic Power…………………………………………..5
A Threat to an Economic Safety…………………………………………………………..6
Massive Inflation…………………………………………………………………………..7
Securing Changes………………………………………………………………………….8
Control over the Market……………………………………………………………………8
Yeltsin’s Measures………………………………………………………………………….9
Bloody Motto………………………………………………………………………………10
References………………………………………………………………………………….11
Abstract
The Russian Mafia has always exercised an important role in the Russian economy. Protectionism, a preferred activity of Russian Mafia, provides adequate security for taking a part of the business’ profit. Nevertheless, it helps create massive inflation to the already weak economy. The twenty percent of the gross earnings extorted from the business as protection raises the price of the goods and services tremendously for the Russian people monthly. Actually, the mafia has a higher collection rate than the Russian government. This infiltration of the economy has had dire consequences. It is estimated that anywhere from 50-100 billion of state and communist currency and gold have been privately appropriated and transferred out of the country. The Russian mafia is involved in every aspect of Russian life. They provide a code of conduct for business not yet provided by the professional elite or the government. Unfortunately, Russian organized crime has prospered in the new economic system as well. All in all, the mafia in Russia greatly accelerated the transition from a command to a market economy, but in the process has created a larger
Alena Nekrashevich
Economics 201
Nicolas Pologeorgis
NOVA College
1 December 2012
Table of Contents
Abstract…………………………………………………………………………………….3
The Birth of the Russian Mafia…………………………………………………………….4
Protectionism………………………………………………………………………………4
Weapon Power of the Thieves in Law…………………………………………………….5
The Mafiosi Influence over Bureaucratic Power…………………………………………..5
A Threat to an Economic Safety…………………………………………………………..6
Massive Inflation…………………………………………………………………………..7
Securing Changes………………………………………………………………………….8
Control over the Market……………………………………………………………………8
Yeltsin’s Measures………………………………………………………………………….9
Bloody Motto………………………………………………………………………………10
References………………………………………………………………………………….11
Abstract
The Russian Mafia has always exercised an important role in the Russian economy. Protectionism, a preferred activity of Russian Mafia, provides adequate security for taking a part of the business’ profit. Nevertheless, it helps create massive inflation to the already weak economy. The twenty percent of the gross earnings extorted from the business as protection raises the price of the goods and services tremendously for the Russian people monthly. Actually, the mafia has a higher collection rate than the Russian government. This infiltration of the economy has had dire consequences. It is estimated that anywhere from 50-100 billion of state and communist currency and gold have been privately appropriated and transferred out of the country. The Russian mafia is involved in every aspect of Russian life. They provide a code of conduct for business not yet provided by the professional elite or the government. Unfortunately, Russian organized crime has prospered in the new economic system as well. All in all, the mafia in Russia greatly accelerated the transition from a command to a market economy, but in the process has created a larger