Search

The reforms of the 90s in Russia aimed at transferring the economy to a market economy were carried out hastily, without considering national, geographical, and historical specifics. Nihilism in the economic, political, and legal spheres of society allowed the transfer of lucrative raw material industries into the hands of the oligarchs. Unprofitable industries fell into decline, which caused structural distortions in the economy. Thousands of cities and towns have disappeared, causing suffering for the people. In the 2000s, there was the centralization of power and rejection of reforms, the oligarchy merged with the state into financial and industrial groups. The consequence was the emergence of a parasitic form of criminal oligarchic capitalism, motivated to export capital from Russia. At the same time, in Kazakhstan, Ukraine, Poland, Czechoslovakia and the Baltic states, reforms and privatization followed a different path. Oligarchization stopped the economic development of Russia and intensified the negative consequences. About this in the paper.

The author discusses corruption as a primarily socio-economic construction. This paper tests the hypothesis of corruption as a systemic problem. The system is (economic, political, legal) the main source of corruption. There are, regarding to this, the system generators of corruption: state, property and market. They are the key institutions of society that are placed in a destructive political system, create corruption, which undermines the economic, political, legal and moral foundations of society. Corruption is the inevitable partner of administrative, bureaucratic, party, non-market societies, societies in which dominate monopoly on coercion and obligation (and the prohibition of coercion). Disorganized, monopolized markets and asymmetric information is also an important source of corruption. All this, in terms of the collective (public, government) property, which is 'used as its own, and kept as others', on a system of vicious cycle, develop and rise corruption. Therefore, the system changes (reforms) are necessary at all levels of government, and introduction of ethical standards in order to eradicate the causes of this social scourge.