Post Soviet Russia & China
The Control of Mafia in Russia: Everywhere
The Russian Mafia has always exercised an important role in the Russian economy. The contemporary mafiosi are descendents of the seventeenth Century highwaymen and Cossack robbers. These men occasionally murdered families prior to raids preventing them from being captured. The Russia mafiosi made a point to remain aloof from the state. Mob men were actually spurned when returning home from fighting in the Great Patriotic War. The gangs begin to dominate markets such as car sales, spare parts, cigarettes, food distribution, and other markets that the ...view middle of the document...
Most entrepreneurs purchase the protection. Then the new company pays unofficial taxes to crime groups. This guarantees that nearly all new businesses will have an affiliation with the mafia. Gustatson estimates that payments can reach approximately twenty percent of the profit for a mafia group. (Gustatson, 105). This is a major form of taxation that is coupled with other legal taxes that a business must, which leads many companies to tax evasion by concealing their exact value. The mafia may demand a cut of the earnings but in turn they supply more than adequate security to businesses The mafia provides protection from unaffiliated criminals and rival gangs, and they ensure that property is not damaged or stolen. If entrepreneurs are visited by another organization, they must only summon their own mafia group that is providing protection, and the two gangs will settle the matter themselves (Gustatson, 105). This security is an asset that the State seemingly fails to provide. The Russian Mafia has more men and weapons than the Russian law enforcement, and The
police force is an intently corrupt, as is much of the Russian government. Both army officers and law enforcers that are frantic for cash may be willing to sell weapons such as guns, grenades, and rocket launchers. (Remnick, 109). The Russian Mafia is easily able to locate weaponry to carry out its duties as a protectorate; while, the authorities lack money and personnel. A few days before the union dissolved the biggest Russian Mafia leaders held a summit meeting at a dacha just outside Moscow with the three main Italian crime organizations from Sicily, Naples, and Calabria. They understood that it would bring turmoil and uncertainty; yet, the Vori v Zakonye or “thieves in the law saw” possibility in the disintegration of the Soviet Union. The organizational leaders assembled to discuss the selling of nuclear materials, and drug-money laundering. (Remnick, 108). The mafia would use their influence to access bureaucratic power. They began anticipating the collapse by becoming private businessmen: primarily consultants. (Remnick, 197). As consultants, they would assert their authority through protection. Many state that protectionism is having a trenchant effect on the Russian economy. It helps create massive inflation in the already weak economy. The twenty percent of the gross earnings extorted from the business as protection raises the price of the goods and services tremendously for the Russian people monthly. (Goldman, 58). The Russian consumer ultimately pays the protection bill. (Goldman, 58). It is estimated that in 1996 about eighty percent of all private businesses made regular payments to a mafia organization for protection and a substantial amount of that money ends up in other countries. (Gustatsun 104). Thus, the mafia underworld is taking a vast amount of wealth out of Russia. With the Russian Mafia handling so much money, it is little