Derek Wong
03/05/99
Ruble Rubble
Imagine a country where people are freezing in the bitter cold and starving to death. This image is then enhanced by the smell of corroding buildings and raw sewage pouring onto the street. Now imagine that these people are not just commoners but also working people, businessmen, and family men which the economy and government is no longer able to support. At first, one might think that this is a third world country already decades in disasters. However, the country being described is "Mother" Russia today. Russia’s current situation of economic and social deterioration is due to the organized crime syndicate, commonly called the Mafia, and corruption in government.
It is essential to review the events that have led to this state of Russia today. In recent years, Russia has undergone several revolutions where the government structure and purpose has changed dramatically. In the earlier part of the decade, Russia, or at that time the Soviet Union, was a communist government where there have been very little corruption and the economy was doing quite well. When a new leader, Boris Yelstin, was elected he changed the government from a Communist to a Democratic system, which the United States strongly suggested.
This transition of government caused many problems, not only for the government, but also for the people. In a communist government, all citizens get the same amount of goods, such as food & supplies etc., but in a democratic government, it is not guaranteed that everyone will get the same amount of goods. This has caused the economy to become rather inflated. For example, bread, which was relatively cheap before the government’s transition, is now the equivalent of ten American dollars per loaf.
Russians are now rummaging for their savings in the rubble of the banking system. With the ruble worth almost nothing now, all Russians are attempting to withdraw their money. Not only did this transition cause havoc in the economy, but also opened up more access points of where the Mafia can infiltrate.
Everywhere you go in Russia, there is not a single person who has not been directly terrorized, or extorted by one of the so-called Russian Mafias. It is evident that their immense power throughout the country has had a tremendous effect on how the government operates. Not only does organized crime in Russia have a hold on the government, but also it strongly controls the Russian economy and military. This means that the organized crime in Russia is not only within the boundaries of Russia, but also starting to spread its tentacles around the world. Foreign nations have now been on the lookout for Mafia related incidences
Unless trends are reversed, Russia will degenerate into a criminal syndicalist state that is manipulated by an assortment of corrupt bureaucrats, business leaders, and criminal kingpins. Criminal influences have created an "aura of legitimacy to myriad illicit activities, including the manipulation of Russia’s banking system and financial markets." Likewise, gangs have sandbagged the legal system, which have made them, in many instances, "de facto adjudicators. Protection rackets in effect have usurped the government’s traditional legal functions and safeguards". These organized crime groups store untold billions of dollars, which are never reinvested to bolster the domestic economy. In today’s world, each country’s economy is interdependent and no longer independent. If trends are not changed soon, every economy in the world would be affected.
Works Cited
Caryl, Christian. "Only a Fool pays taxes in Capitalist Russia." U.S. News & World Report 30 March 1998, 38
Hoffman, David. "Yeltsin Acts-and then Hold His Breath." Washington Post 24 Aug. 1998, weekly ed.: 15
O’Brien, Timothy L. "As the Ruble Withers, Russians Survive on Barters." New York Times 6 Sept. 1998, late ed.: C1+
Van Hook, Steven R. "Russian Mafia Shakes Down the Country." World Media Relations 8 Oct. 1998: n. pag. Online. Internet. 15 Sept. 1998. Available http://www.west.net/~wwmr/mafia.htm
Williams, Robert H. "Organized Crime Czars Corrupt Russia, Prompt Conerns of Nuclear Proliferation." National Defense March 1998: 22