Corruption and Institutions in Russia

This paper describes the institutions and social norms that have accommodated corruption in the Russian Federation in the post-transition years. We show how corruption is sustained by ill-defined boundaries between political and private business activity, and how the role of the state facilitates rather than hinders corruption. Our purpose is to make clear the prominence of corruption as a primary cause of the Russian transition failure. We have provided a systematic account of corruption in transitional Russia, explaining the sources of corruption and how corruption affects on politics, economy and social life and is affected by economic activity. We also have given some estimates of the monetary magnitude of corruption. We have characterized corruption as a phenomenon of the transition and have described activities of corruption that reach from grassroots levels to the highest levels of government authority. In conclusion we have suggested changes in economic, political and judicial conduct that would make corruption more difficult.