Economic Crime In Russia Essay

2213 words - 9 pages

Economic Crime in Russia

In Russia, where bureaucratic markets have been legalized, power and influence is highly monopolized, even by socialist "standards." Liberalization and privatization of prices and trade have led to a cutthroat battle for redistribution of and control over property, resources, and allocation channels, and also have fed economic crime.

Types of Wrongdoing

Economic crime is hardly a new phenomenon. As long as people have exchanged goods, they have cheated. With the rapid development of technology and communications and the explosive increase in financial interactions between people in the second part of the twentieth century, economic crime has become a highly diversified and fast-growing industry. It is impossible to point to crimes that are specific to countries currently in transition, but some particular crimes flourish in transition, some could not be committed during socialism, and others decline when reforms begin. Illegal economic activities can be grouped in the following broad categories:

• Corruption—abusing power related to a particular job or position to gain unlawfully wealth or influence.

• Fraud—financial gain obtained through loopholes in regulations, manipulation, or exploitation of public or personal trust (smuggling, illegal operations with hard currency, falsified bankruptcies, forgery, falsified credits, illegal capital flight, and so on).

• Theft and extortion (racket)—direct (physical) intervention of criminals; expropriation of property or the property rights of others.

• Tax evasion. This category is beyond the scope of the this aticle. (Russia's tax police in the first half of 1996 uncovered about 12,000 cases of evasion resulting in 3,100 criminal cases, raising 13 trillion rubles for state coffers, and lodged penalties that will bring in another 9.3 trillion rubles, Interfax News Agency reported. Compared with previous years, the numbers reveal a change in government policies on tax evasion. During 1994 only 1,500 tax offenses were filed in court, of which only 20 cases were considered as criminal and only 10 saw sentences pronounced. In 1995, of 4,229 tax evasion cases, 1,611 were considered criminal and 312 evaders were sent to court.) There is a crucial difference between the "second" economy and economic crime. The "second" economy is a productive sector guilty of one main crime—tax evasion; economic crime is only a redistributor of wealth.

Crime Then and Now

In the Soviet Union theft of socialist property, corruption, and illegal hard currency operations were the major economic crimes. Large-scale theft of socialist property and massive fraud involving hard currency could be, and were, punished by death. (William A. Clark analyzed trials of Soviet government officials and enterprise managers charged with economic crimes, as reported by the Soviet press between 1965 and 1990. Of the 849 officials tried, about 500 received jail sentences, with an...

Find Another Essay On Economic Crime in Russia

“Assess the impact of social, political and economic issues in early twentieth century Russia in the downfall of the Romanov Dynasty.”

780 words - 3 pages Untitled "Assess the impact of social, political and economic issues in early twentieth century Russia in the downfall of the Romanov Dynasty." The downfall of the Romanov dynasty was due to the impacts of bearing internal factors on Russia such as the social, political and economic issues present in early twentieth century Russia. These issues were largely manufactured by previous generations of Tsars but ultimately set

Russian Foreign Policy Paper

3626 words - 15 pages and political leadership and India and China's will to pursue military and economic agreements with Russia. Russia will not choose to ally itself with these countries but will be forced too because of the European Community's and N.A.T.O.'s treatment of it s a defeated nation. The European Community's lack of respect for Russia in foreign affairs will be the driving force in Russia for it to ally with its Eurasian neighbors. Due to E.U

The Russian Mob

4682 words - 19 pages private property had an illegal connotation. For this reason, many Russians viewed private property as somehow illegitimate even after the fall of the USSR, so no one thought it particularly important to stop its infiltration by organized crime (Anderson, 1995, 352). Second, the black market that existed during the USSR created a social stratum of organized criminals whose connections and elevated economic status remained in post-Soviet Russia

An analysis of United States foreign policy with Russia.

3637 words - 15 pages integrating itself into the Western-based international system. As believed, this integration would reap two positive effects. The international system would offer not only financial, but political and security resources as incentives to Russia for reform and transition towards a market and democratic government. In addition, United States could profit from this integration by being a considerable influence in their societal and economic interests

An Analysis of Russia and Why Do Business in Russia

1614 words - 6 pages around two-thirds of state-run enterprises. "Over the last five years, the number of organized crime groups increased 17 times, while the number of groups with corrupt ... links rose 170 times," Kulikov said.In fact, crime rates and corruption were so wide-spread in Russia following the breakup of the Soviet Union in December 1991.Beyond any doubts, corruption negatively affects all aspects of life, economic, social and political.Corruption, with

Country Report

1209 words - 5 pages authorities also plays a vital role in the ever increasing crime of human trafficking. In fact, “[the] Human Rights Watch reports [of] 2009 and 2013 found that migrant workers endured extortion, physical abuse, and forced menial work by police at police stations [in Russia]” (“Russia,” 2013). Reports have also implicated Russian law enforcement of facilitating human trafficking, bribery, extortion, and returning victims to their captors

Commonwealth

1238 words - 5 pages direct production relations.In order to facilitate further integration the Agreement on deepening of integration in economic and humanitarian field of four countries (Belarus, Kazakhstan, Kyrgyzstan, Russia) and Agreement on creation of Commonwealth of Sovereign Republics (Belarus and Russia) with creation of corresponding coordinating bodies were signed in 1995. In February 1999 by the decision of the Interstate Council of four countries (Belarus

US - Russian relations after the cold war

1446 words - 6 pages devoted itself to the new type of the economy; with private sector businesses. But what they could do with all those weapons produced during the Soviet era? And the way out was found. Russia became the biggest exporter of military ammunition on the world market. The exports of oil also put Russia on the leading positions in the world. Everything was going just fine. 'Russia was moving from pure stabilization to the resumption of economic

Russia and the WTO

1488 words - 6 pages Economic Profile of RussiaWith our small business venture of importing Diesel jeans to Moscow, Russia, it is necessary to examine not only the current but also the past economical statistics to give a greater knowledge of the country's welfare.Gross Domestic Product in Russia:In 2003, Russia's real gross domestic product (GDP) grew by 7.3%, surpassing average growth rates in all other G8 countries, and marking the country's fifth consecutive

The Rise of Criminal Organizations in Globalized Era

1479 words - 6 pages world's largest and most powerful criminal confederations. The Yakuza are highly structured and criminally diverse organizations that have thoroughly penetrated Japanese society4, including the legitimate economic sphere, through their extortion.2. T. Makarenko, Terrorism and Transnational Organised Crime: The Emerging Nexus,3. G.M. Derluguian,. The Destruction of the Soviet Union: A Study in Globalization, pp. 157-160 n4. F. Attina, Globalization and

The Political Past, Present, and Future of Russia

4952 words - 20 pages to his ideas. With the same ease the president may remove a prime minister and a minister from the office, but without the parliaments approval. In Russia the prime minister does not hold as much power as in Britain. In Russia, the prime minister's main role is to operate the bureaucracy and do the work to develop economic and social sectors of the country. The leading responsibility in Russia falls on the president, thus

Similar Essays

Economic Reform In Russia Essay

1304 words - 5 pages Economic Reform in Russia Formerly the preeminent republic of the Union of Soviet Socialist Republics, Russia has been an independent nation since the dissolution of the Soviet Union in 1991. Because of its great size, its natural resources, and its political domination, the Russian Federation played a leading role in the economy of the Soviet Union. In the years preceding the disintegration of the union in 1991, the economy of Russia

Women's Economic Role In Russia Essay

1944 words - 8 pages Women's Economic Role in Russia Missing Works Cited Women in post-Communist Russia face violent crime, high unemployment, low wages and bear most of the responsibility for domestic duties. A colossal rate of alcoholism have given Russia one of the highest proportions of widows of any nation. The vast majority of Russian women must work full time to survive. They are also expected to do the bulk of the cooking, shopping, and childcare

Policy Proposal For Economic Reform In Russia

2761 words - 11 pages Policy Proposal for Economic Reform in Russia Despite making a recovery after the 1998 market crash, Russia remains weighted with numerous holdovers from the Communist era that keep its economy from taking advantage of free-market reforms. In short, Russia has not prospered under capitalism because it has not yet discovered it. In order to do so, the Russian government must engage in extensive reform in several key areas: improving the rule

The Effectiveness Of Wittes Economic Reform In Russia

798 words - 3 pages The Effectiveness of Wittes Economic Reform in Russia When Sergei Witte became minister of finance in Russia in 1892 he recognised that the economy had to be modernised if Russia was to become a world power on a par with the west. The Industrial Revolution that had taken place in the west had led to its massive economic growth and an increase in power and Empire building. Being able to buy cheap, raw materials like