Russian Mafia Control the New Market.
The mafias in Russia greatly accelerated the transition from a command to a market economy, but in the process have created a larger problem than socialism could possibly deem. The concept of bribery and thievery has all came predominantly and originally from socialism, which resulted in shortages in the economy. The government could not provide people with basic necessities (Sterling). People would either have to manipulate the system at hand, or suffer. This led to black market originally and the concept of corruption has been expanded to a broader playing field, a market economy. .
Democracy prevailed in Russia in 1991 under Boris Yeltsin after the fall of Gorbachev and the Soviet Union. Successful reforms in Russia or any country for that matter are not due to sound government, but sound business (Jasper). The same KGB officers of the Soviet came back into power when Yeltsin hired many of them for his new government. The KGB consolidated powers with the mafia and took over private businesses. They exploited private ownership rights. They thrived in the free market that provided them mobility, relaxed borders, and money from abroad (Van Hook). The mafia went from feeding off the economy during socialism, to owning the economy with market economy. With privatization, literally everything in Russia went up for sale, and the mafia bought it up. They supplied, and the mafia demanded. The mafia has a hand in 80% of banks and private enterprises (Van Hook). They own the economy. They are supreme rulers of Russia, with more power than the government. They actually have people in the government working for them. The transition to capitalism was definitely hurried by involvement of mafia. But, the country is not better off. Russia is corrupt as anybody could imagine. They take what they want by force, and are feared by all. It is nearly impossible to make an honest living in Russia.