Russian Mafia Essay Example For Students

Russian Mafia Essay Protectionism in the New Capitalist Russia The Russian Mafia has alwaysexercised an important role in the Russian economy. The contemporary mafiosi aredescendents of the seventeenth Century highwaymen and Cossack robbers. These menoccasionally murdered families prior to raids preventing them from beingcaptured. The Russia mafiosi made a point to remain aloof from the state. Mobmen were actually spurned when returning home from fighting in the GreatPatriotic War. The gangs begin to dominate markets such as car sales, spareparts, cigarettes, food distribution, and other markets that the Communist Partyfailed to provide under the Bolsheviks (Remnick196). Since the collapse ofCommunism and the dawn of Capitalism, the Russian people have been troubled withinnumerable obstacles. There are more than 3,000 gangs known generally as theRussian Mafia. They have proven to be a significant force in delaying the reformprocess (Goldman 58). The new Russian Mafia has involved themselves in everyimag inable kind of criminal activity from drug trafficking and money launderingto protectionism, which penetrates into every area of society. Under the laws ofthe Soviet Union, the regulations were strong and external. Now the externalregulators have disappeared allowing the Russian Mafia to exceedingly enlargeits strength and influence especially with the accelerated speed ofprivatization without legal safeguards. The Russian Mafias effect on theRussian economy through protectionism can be viewed through the different scopesof academia, the United States Press, and the Russian Press. Protectionism is apreferred activity of the Russian Mafia. When a new private business opens, themafia ensures that it will get a share of the profits. The mob offers the newoperation protection. If the business refuses to purchase protection, the mafiauses violence against them or their property (Gustatson 105). Most entrepreneurspurchase the protection. Then the new company pays unofficial taxes to crime groups. This guarantees that nearly all new businesses will have an affiliationwith the mafia. Gustatson estimates that payments can are approximately twentypercent of the profit (105). This is a major form of taxation on top of what thegovernment already commands leading many companies to tax evasion or concealingtheir exact value. These acts forfeit what little protection the authoritiesmight be able to render. The mafia demands a cut of the earnings but in turnfurnish more than adequate security. The mafiosi provides protection fromunaffiliated criminals and rival gangs. They ensure that property is not damagedor stolen. If entrepreneurs are visited by another organization, they must onlysummon their own mafia group. The two gangs will settle the matter themselves (Gustatson105). This security is an asset that the State seemingly fails to provide. TheRussian Mafia has more men and weapons than the Russian law enforcement. Thepolice force is an intently corrupt place as is much of the Russian government. Both army officers and law enforcers are frantic for cash and willing to sellweapons such as guns, grenades, and rocket launchers (Remnick 109). The RussianMafia is able to easily locate weaponry to carry out its duties as protectorate;while, the authorities lack money and personnel. A few days before the uniondissolved the biggest Russian Mafia leaders held a summit meeting at a dachajust outside Moscow with the three main Italian crime organizations from Sicily,Naples, and Calabria. They understood that it would bring turmoil anduncertainty; yet, the Vori v Zakonye or thieves in the law saw possibility inthe disintegration of the Soviet Union. The organizational leaders assembled todiscuss the selling of nuclear materials, and drug-money laundering (108). Themafiosi would use their influence to access bureaucratic power. They begananticipating the collapse by becoming private businessmen: consultants andrainmakers (197). As Consultants and Rainmakers, they would assert theirauthori ty through protection. Academia states that protectionism is having atrenchant effect on the Russian economy. It helps create massive inflation tothe already weak economy. The twenty percent of the gross earnings extorted fromthe business as protection raises the price of the goods and servicestremendously for the Russian people monthly. The Russian consumer ultimatelypays the protection bill (Goldman 58). It is estimated that in 1996 about eightypercent of all private businesses made regular payments to a mafia organizationfor protection and a substantial amount of that money ends up in othercountries. (Gustatsun 104). Thus the underworld is taking a vast amount ofwealth out of Russia. With the Russian Mafia handling so much money, it islittle wonder that they were able to buy so many governmental officials. Harrison Bergeron A Picture Of Inequality EssayThe decree Yeltsin issued permits police to detain organized crime suspects forthirty days without cause, search offices and homes without a warrant, andinspect the finances of suspects. Uncorroborated testimony is now permissible incourt, and witnesses that decline to testify can be punished (Fifty-two Percent11). Yet, these measures seem to have done little to stop organized crimesgrowth. Unfortunately, Russian organized crime has prospered in the new economicsystem, and has migrated well beyond the Russian boundaries. Much of the privatebusiness activity lies in a gray region somewhere between legality andillegality. The law has yet to fully catch up with privatization. Academia, theUnited States Press, and the Russian press all paint a devastatingly bleakpicture of the Russian economy; yet, there is hope for change. Many smallcompanies do not have the luxury of making drastic changes; yet, efforts arebeing made to stop the mafia or at least cease the growth of it on the side ofthe government and larger businesses. Enterprise are creating their own companysecurity and stopping protection payments. Things will not change overnight, butRussia can and slowly is moving toward normalcy. BibliographyBiz in Russia. Puget Sound Business Journal. 7 March 1995: 18. Comrade Godfather; In Russia, the Mafia Seizes the Commanding Heights of theEconomy. The Washington Post 12 Feb. 1995: C2. Crime in Russia. CurrentDigest of the Post-Soviet Press 15 Feb. 1995: 14. Fifty-two Percent BelieveMafia is Running the Country. Current Digest of the Post-Soviet Press 8 Oct. 1997: 11 Goldman, Minton. Russia, The Eurasian Republics, and Central/EasternEurope. Connecticut: McGraw-Hill, 1999. 58-60. Gustatfson, Thane, and DanielYergin. Russia 2010: And What It Means For the World. New York: Random House,1993. 105-106. Holmes, Charles. In Russia, Repression Gives Way toCorruption. The Atlanta Journal and Constitution 7 Sept. 1997: B1. Lloyd,John. The Russian Devolution. New York Times 15 Aug 1999: A8. Remnick,David. Resurrection. New York: Random House, 1998. 108- 110, 196-199. Sukhova,Suctlana. Head of Russian Internal Affairs Ministry Believes The RussianMafia is a Myth. Current Digest of the Post-Soviet Press 9 Dec. 1998: 20. Tanner, Adam. Russias Notorious Mafia Spreads Tentacles of Crime Aroundthe World. Christian Science Monitor 11 Jan. 1995: C2. The Russian MafiaMeans Business. Economist 4 July1998: 60.