Saturday 7 May 2016

(Assignment 4) Corruption in Russian culture - Charlotte

"Thank you doesn’t butter my bread"

Corruption in Russian culture is pervasive to the extent that a list of phrases such as this one had to be banned from government officials’ usage by the Ministry of Labor[i]. In the order of historical significance though, most instances of corruption in Russia happened during the Catastroika[ii]. Oligarchs and Clans (Johnston, 2005) accumulated state wealth during a period which was marked by the move from a planned to a market economy. There was major economic downturn causing widespread inequality, unemployment and organized crime. State assets were privatized, and so were they in the hands of a few business clans.  Reconstruction of the state meant a weakening authority and institutional capacity, which furthered corruption and violence.

The problem was identified to have Soviet roots, emerging from the powerful state machine with an authoritative and corrupt bureaucracy, which was answerable to no one. (Johnston, 2005)  Some of the most prominent cases which came to light include the case of Mikhail Khodorkovsky, the richest ‘‘oligarch’’ in 2003, who amassed considerable wealth through control of Siberian oil fields while privatizing state assets. Similarly, another accused, Oleg Deripaska was part of the takeover of the aluminum industry. The trend today is not very dissimilar - Putin’s inner circles have been implicated in the Panama Papers to have dwindled 2 billion dollars in offshore trails[iii]. Selective anti-oligarch measures happened till 2004 but corruption was so rampant that its evidence became a saleable commodity. “Kompromat”, or ‘compromising materials’ was widely used as an effective threat to extract rents for covering up the case of corruption.  (Johnston, 2005)

As anticipated by the West, the shift to the market economy in Russia and the command of the invisible hand did not bring about a collective social optimum. (Varese, 1997) There was a huge increase in the number of lobbies created by companies to evade taxes and break government regulations. (Varese, 1997)  On the one hand, an indication towards the general state of lawlessness and insecurity, the inefficiency of the legal state apparatus and a decay of an “older normative framework” as interpersonal relationships and trust loosened in the midst of rapidly expanding economic potentials was noted. (Johnston, 2005) At the same time, Varese identifies a new kind of co-operation that emerged in the competitive economy. Corporates, who were chiefly the formerly influential soviet officials, realized the incentives of bribing and crimes against law and demanded more trust and state protection, leading to widespread crime and corruption. (Varese, 1997)

The story unveiled here, is clearly then not the same as a corruption scandal in a Western democracy. Corruption could be characterized as an exception to the norm of universalism in liberal societies, where certain individuals pay bribes to get a special treatment. (Mungiu, 2006) This cannot be the typology of corruption in post-communist regimes like Russia. In these countries, people have to pay bribes to get equal treatment as their other privileged counterparts since particularism is the norm. (Mungiu, 2006) Therefore, any amount of democratization and anti-corruption measures will not work unless the original distribution of power, spheres of influence and particularistic ideals are questioned.

Our case of corruption is a case of “systemic decay”, as postulated by Aristotle or Machiavelli. (Euben, 1978) MacIntyre puts forward that politics should be a pursuit of certain “goods of excellence” – agreement on values, say, “non-corrupt” which forms the basis of the social contract, which would lead “goods of effectiveness” - the benefits achieved by the society as a whole as a result of practicing the virtues, say, reduced inequality. (Knight, 1998) For a typology of corruption that is inherently political, it thus follows that we need goods of excellence, i.e., anti-corruption measures that are necessarily political too. These could include ardent public demands for increased accountancy and transparency of the transactions of the oligarchs and clans. One could also legally increase the “butter in the bread” of civil servants to reduce the incentives for being corrupt and to strengthen the law enforcing institutions.



Citations:
1.     Johnston, Michael. Syndromes of corruption: wealth, power, and democracy. Cambridge University Press, 2005.
2.     Knight, Kelvin. The MacIntyre Reader. Notre Dame: University of Notre Dame Press, 1998.
3.     Mungiu, Alina. "Corruption: Diagnosis and treatment." Journal of democracy17.3 (2006): 86-99.
4.     Euben, J. Peter. "On political corruption." The Antioch Review 36.1 (1978): 103-118.
5.     Varese, Federico. "The Transition to the Market and Corruption in Post–socialist Russia." Political Studies 45.3 (1997): 579-596.













[i] See Eldem, Miriam, “Russian officials told to stop using phrases linked to corruption” http://www.theguardian.com/world/2013/mar/07/russian-officials-phrases-linked-corruption
[ii] See  Milne, Seumas, “Catastroika has not only been a disaster for Russia” in The Guardian, 16, August, 2001.
[iii] See Harding, Luke, “Revealed: the $2bn offshore trail that leads to Vladimir Putin” http://www.theguardian.com/news/2016/apr/03/panama-papers-money-hidden-offshore

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