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Corrupt Intermediaries in Post-Socialist Russia: Mutations of Economic Institutions

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  • Irina Olimpieva
  • Oleg Pachenkov

Abstract

Using the example of intermediaries in business–state relations, this essay addresses the evolution of corruption in Russia which has been facilitated by the introduction of a neoliberal system of market relations. Based on empirical studies of small and medium-sized enterprises in Russia, the essay demonstrates how intermediaries (which are also present in Western market economies and serve the function of reducing firms' transaction costs) have adapted to the local system in order to serve as providers of both legal and illegal (corrupt) services. Disputing the pervasive claim that neoliberalism and corruption are mutually exclusive phenomena, we argue that in ‘incoherent’ democracies like Russia, where properly functioning democratic institutions and a developed civil society are lacking, neoliberalism has led to the expansion of corruption.

Suggested Citation

  • Irina Olimpieva & Oleg Pachenkov, 2013. "Corrupt Intermediaries in Post-Socialist Russia: Mutations of Economic Institutions," Europe-Asia Studies, Taylor & Francis Journals, vol. 65(7), pages 1364-1376.
    • Handle: RePEc:taf:ceasxx:v:65:y:2013:i:7:p:1364-1376
    DOI: 10.1080/09668136.2013.822705
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    Cited by:

    1. Vincent Montenero, 2018. "Russia's Integration to the Globalized Automotive System: Solutions Adopted by Multinationals and Impact on the Local Industrial Environment," European Journal of Business Science and Technology, Mendel University in Brno, Faculty of Business and Economics, vol. 4(1), pages 31-47.
    2. Alexandra V. Orlova & Veselin Boichev, 2017. "“Corruption Is Us†: Tackling Corruption by Examining the Interplay Between Formal Rules and Informal Norms Within the Russian Construction Industry," Journal of Developing Societies, , vol. 33(4), pages 401-427, December.

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