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Corruption in Russia
Corruption in Russia is a significant problem that affects the lives of Russia's citizens. Corruption has penetrated all levels of government and most other aspects of life in Russia. Transparency International has ranked Russia 127th in its recently published 2013 Corruption Perceptions Index.〔http://cpi.transparency.org/cpi2013/results/〕 The previous year, Russia was ranked 133rd and in 2011 143rd.
==The spread of corruption in contemporary Russia==
A notable worsening of this ranking for Russia – from 90th place to 126th – occurred at the beginning of Vladimir Putin's second term as president; a drop of 36 places in only one year. An equally pessimistic picture emerges from the estimates of the average size of bribes which has substantially increased over the last five years. For example, according to the Interior Ministry’s Department for Combating Economic Crimes, the average bribe amounted to 9,000 Rubles in 2008; 23,000 Rubles in 2009; 61,000 rubles in 2010; and 236,000 rubles in 2011. In other words, the average bribe in 2011 was 26 times greater than the average bribe in 2008, many times the inflation rate for the same period. According to Sergei Ivanov, the Kremlin chief of staff, the most corrupt spheres in Russia (in terms of household corruption) are healthcare, education〔Osipian, Ararat. (2012). Loyalty as Rent: Corruption and Politicization of Russian Universities. International Journal of Sociology and Social Policy, 32(3/4), pp. 153-167.〕, housing and communal services.〔May 2008 – December 2011, Deputy prime minister of Russia, since December 2011, the head of Russian Presidential Administration〕 In comparison, independent experts from ''RBC magazine'' name law-enforcement agencies (including the State Traffic Safety Inspectorate) as the most corrupt sphere in Russia, which is followed by healthcare, education, housing and communal services, and social security services. At the government level, however, the five top areas for corruption are as follows: Government contracts and purchases; Issuance of permits and certificates; Law-enforcement agencies; Land distribution and land relations; Construction.
There are many different estimates of the actual cost of corruption.〔Osipian, Ararat. (2012). Education Corruption, Reform, and Growth: Case of Post-Soviet Russia. Journal of Eurasian Studies, 3(1), pp. 20-29.〕 According to official government statistics from Rosstat, the "shadow economy" occupied only 15% of Russia's GDP in 2011, and this included unreported salaries (to avoid taxes and social payments) and other types of tax evasion. According to Rosstat's estimates, corruption in 2011 amounted to only 3.5 to 7% of GDP. In comparison, some independent experts maintain that corruption consumes as much of 25% of Russia's GDP.〔Source: Milov, Nemtsov, Ryzhkov, Shorina (2011). "Putin. Corruption. Independent expert report", p. 6.〕 A World Bank report puts this figure at 48%. There is also an interesting shift in the main focus of bribery: whereas previously officials took bribes to shut their eyes to legal infractions, they now take them simply to perform their duties. Many experts admit that in recent years corruption in Russia has become a business. In the 1990s, businessmen had to pay different criminal groups to provide a "''krysha''" (literally, a "roof", i.e., protection). Nowadays, this "protective" function is performed by officials. Corrupt hierarchies characterize different sectors of the economy〔Osipian, Ararat. (2010). Corrupt Organizational Hierarchies in the Former Soviet Bloc. Transition Studies Review, 17(4), pp. 822-836.〕, including education.〔Osipian, Ararat. (2009). Corruption Hierarchies in Higher Education in the Former Soviet Bloc. International Journal of Educational Development, 29(3), pp. 321-330.〕
In the end, the Russian population pays for this corruption〔Osipian, Ararat. (2012). Who is Guilty and What to Do? Popular Opinion and Public Discourse of Corruption in Russian Higher Education. Canadian and International Education Journal, 41(1), pp. 81-95.〕. For example, some experts believe that the rapid increases in tariffs for housing, water, gas and electricity, which significantly outpace the rate of inflation, are a direct result of high volumes of corruption at the highest levels.〔Milov et al., Op,cit., 2011, p. 6.〕 In the recent years the reaction to corruption has changed: starting from Putin's second term, very few corruption cases have been the subject of outrage. Putin's system is remarkable for its ubiquitous and open merging of the civil service and business, as well as its use of relatives, friends, and acquaintances to benefit from budgetary expenditures and take over state property. Corporate, property, and land raiding is commonplace.〔Osipian, Ararat. (2012). Predatory Raiding in Russia: Institutions and Property Rights after the Crisis. Journal of Economic Issues, 46(2), pp. 469-479.〕
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