I can personally vouch for just about everything said below.
Chris Doss The Russia Journal ------------------ Argumenty i Fakty May 29, 2002 ANATOMY OF CORRUPTION II Russia is still a long way from being a nation with a market economy Author: Vyacheslav Kostikov [from WPS Monitoring Agency, www.wps.ru/e_index.html] OFFICIALS IMPOSE THEIR OWN RULES OF THE GAME ON BUSINESSES, ESPECIALLY SMALL AND MEDIUM-SIZED ONES. BESIDES, BRIBES CAN TAKE FORMS OTHER THAN MONEY. THE CONCLUSIONS OF RESEARCH ARE VERY DISTURBING FOR RUSSIAN LIBERAL POLITICIANS AND AUTHORITIES: THE FREE MARKET EXISTS ONLY ON PAPER IN RUSSIA.
According to results of research done by the InDem Foundation, almost half of Russian citizens - and about 60% of Russian business owners - believe that a bribe is a "necessary part of our lives". No less than half of the economically active Russian population is involved in corruption at the everyday level. No matter where you apply, you will get ripped off. Assortment of extortions is almost unlimited but there are undutiful leaders. For instance, "free" medical services receives from the population $600 million a year; entrance to the university, institute, or school costs Russians $520 million. Handling things with the traffic police or the police costs $465 million. The price of restoration of justice in the courts is $275 million a year. Receiving or registering accommodation costs $123 million. Evasion of military service is only $13 million. Russian citizens spend at least a billion dollars a year on everyday bribes. In fact, this sum may be three to five times higher. Two the most corrupt areas are health care and education. No fewer than 20% of university places are obtained through bribes. One can only guess how much these students "respect" professors, university administrators, and the nation in general. Besides, this leads to discrimination - and about 11% of young people refuse to apply for a higher education institution, realizing that they are unable to compete in the rich parents' contest.
The position of medium and small business owners is the most difficult. Although the average amount of bribes comparing to corruption in the top echelon of the power is not large, "only" $2,000 to $4,000 a year, bribe-takers do not miss a single business.
Officials are perfectly aware of the most "profitable" positions. These are first of all monitoring and inspection. Issuing of all kinds of permits, and coverage of tax errors make up about 60% of the whole corruption market. However, the highest bribes are given to the customs service. An ordinary customs officer can easily "require" $4,000 and higher; while large-scale fraud brings millions of dollars to both bribe-givers and bribe-takers.
Of thirty state agencies, the absolute corruption leaders are: tax inspectorate - 18.3%; fire safety inspectorate - 5.9%; and the public health and epidemiological service - 5.6%.
Law enforcement bodies receive almost the least average bribes. All sorts of "closed eyes", not-instituted cases, and small "covering" by the police costs within $1,000. A private traffic police officer is content with a $100 note. However, social and political consequences of corruption in law enforcement bodies are the most dangerous. Apparently, common citizens judge about the condition of the power as a whole by their work. And while wandering around police institutions, people leave in pockets of small and medium police and court officials over $300 million a year. The most dangerous trend is pushing aside and replacing by the police of various criminal groupings that "cover" small and medium-sized businesses, with further acquiring functions of the criminal business and its proceeds. Guarding prostitutes by policemen is not a serious business at all. According to experts' appraisals, up to 60% of smuggling proceeds go not to smugglers but to power and law enforcement structures that "work" with them.
In these terms, the processes of late in the Interior Ministry and prosecutor's offices are not a surprise: it is first of all washing out honest and experienced personnel. "New policemen" sometimes not only close their eyes for bribes and conceal the criminality rate in the country, but also actively sell compromising materials they collect in the course of investigation. There are cases when tycoons "bought" top-ranking officials of the Interior Ministry, prosecutor's office, and even the Federal Security Service along with all information, collected compromising materials, and contacts. In large commercial structures, such people usually receive huge salaries, $10,000 to $20,000 a month. Clearly, they don't receive wages for nothing.
The research of the INDEM foundation proves that having captured the economy, corruption is actively intruding on politics. By corruption level, political parties run a close second to the traffic police. The State Duma holds the third place. The church and human rights groups are the least involved in this dirt. The research dispels a number of myths. The media often reports on corruption in the presidential administration and the military. In fact, these structures hold very modest 12th and 13th places.
Officials impose their own rules of the game on businesses, especially small and medium-sized companies. Besides, bribes can take other forms than money. For "a favor", an official may demand a good job for his wife or son in the company being inspected; or may require a large "contribution" to the "charity fund" he or she established; or to register an expensive apartment in his name. The value of such "gifts" may range from tens of thousands of dollars to a million dollars.
The conclusion of the research is very disturbing for Russian liberal politicians and authorities: the free market and the currently fashionable liberalism actually exist in Russia only in words spoken from official platforms. "The nation still exists under ruinous pressure exerted on the economy by the executive branch." So if George Bush refuses to include Russia on the list of nations with a market economy, we have only ourselves to blame, not him. (Translated by Arina Yevtikhova )