e businesses in Moscow pay a percentage of its profits to its organized crime associations. Actually, the mafia has a higher collection rate than the Russian government (Washington Post C2). This infiltration of the economy has had dire consequences. There is no way to determine how much money is involved. However, it is estimated that anywhere from 50-100 billion of state and communist currency and gold have been privately appropriated and transferred out of the country (C2). That is on top of the tremendous inflation due in part to protectionism. In 1992, the prices rose twenty-six percent. The inflation rate was eighteen percent a month in 1995. Needless to say, any adjustment to salaries tarried far behind the constant escalation of prices. Things are beginning to change in Russia. Companies are building up their own security forces. They are obtaining security from the mob and their protection schemes for themselves. They are employing armed guards, which is reasonably inexpensive in Russia. Many companies are also introducing closed-circuit television and scrutinizing visitors even photocopying identification papers for future reference (Economist 60). This is begining to put most creditable businesses beyond the grasp of the most primary variety of Russian gangster. Protectionism might be slowly coming to an end. The Russian press reports that fifty-two percent of the country believe that the mafia is running the country. The Majority also believed that Russia’s rich got wealthy through stealing, plundering, bribery, or some other form of corruption (Fifty-two Percent Believe 11). Yet the Russian Internal Affairs minister, Sergei Stepashin, stated that the Russian Mafia is but a myth during an address reporting on the Russian criminal world at a European Union meeting. He said, “Fear of the Russian Mafia stems from a lack of understanding the processes that are occurring today in Russia” (Sukhova 20). He also re...
