Russia, how corruption impedes privatisation.

Russia, how corruption impeded privatisation

INTRODUCTION

In 1992, privatisation in Russia started. The euphoria of the reform to a market economy was fast damped by the proofs of corruption, in particular, corruption by a specific elite, the Oligarchs. This corruption impeded privatisation and up to now economic transformation has been counteracted by the Oligarchs. In this paper I will discuss some causes of corruption and I want to underline the power and the influence of the Oligarchs. In the first section, I will describe the (specific) conditions of privatisation in Russia. Secondly, I will discuss some causes of corruption. In the next section, I will examine the position of the Oligarchs. Finally, I will pass some solutions.

1. Privatisation, a difficult task
After the collapse of the Soviet Union, the expectations Russian people had, were high but at the same time daunting, because what just had ended was one of the most dysfunctional political economies in hi...