Corruption Networks in the Russian Economy

Abstract

Enterprise directors in the planned economy developed close networks with bureaucrats and politicians, mainly in the branch ministries, in order to obtain the means of production needed by their enterprise. Many members also used these networks for emezzlements. Since the collaps of the Soviet Union, the networks have adapted to the changes, by increasing attention to the role of money and by including new members. However, they still offer enterprise directors privileged access to state ressources. Rent-seeking, therefore, can be seen as a central activity of corruption networks in the post-Soviet economy. The nature of such networks is examined more closely in case studies of the Russian banking sector, the coal industry and the oil industry.