Corruption and Russia's transition to a market economy

This dissertation investigates Russia’s transition to a market economy and the high levels of corruption that accompanied the process. After some sixty years under Communism and a centrally planned economy, Russia began the transition to a market economy at the beginning of the 1990’s. After the dissolution of the USSR in 1991 a power vacuum emerged which was filled to a large extent by organised crime and corrupt government officials. High levels of corruption became a common feature of the transitional process and to this day Russia is still perceived to be one of the most corrupt countries in the world. The dissolution of the USSR in 1991 was followed by dramatic drops in Russian citizens standards of living, income and even life expectancy. The harsh climate of the early stages of the transition was characterised by mass unemployment and most Russian citizens living in poverty. However some segments of Russian society became extremely rich during the early stages of transition. This was illustrated by the increase in wealth disparity as those with the right connections to government, business and organised crime flourished while those who did not, found their standards of living decreasing and sliding further into poverty. This study will look at some of the reasons or factors contributing to the high levels of corruption in transitional Russia. Some of the contributory factors to be analysed are the inefficient and weak legal system, the large unregulated economy and the oligarchic networks controlling large portions of the Russian economy. To some degree the political and economic impact of corruption will also be analysed and assessed. The author has used material from texts, journal articles and organisational reports to generate an overall picture of the transitional experience of Russia and the high levels of corruption that have accompanied the process.