ported that there is a myth of a Russian mafia that should be dispelled. Protectionism is not really occurring.. The Russian mafia controls almost every aspect of the Russian market. They determine who can open a business, stay in business, and who must close their business. The mafia makes these determinations, often times, on who is compensating them for their security services. Most Russians report that they are directly or indirectly intimidated or extorted by at least one of the organizations within the Russian mafia. The syndicates seem to arrange an organization for business that is not yet available from the government or professional arena. If one business has a problem with labor or another business, the business owner merely contacts his mafia link. The matter is immediately, quietly, and efficiently resolved. (Crime in Russia14). The Russian mafia is involved in every aspect of Russian life. They provide a code of conduct for business not yet provided by the professional elite or the government. The mafia has a detrimental effect on the Russian economy. It not only creates massive inflation, it deters companies from other countries from investing in the Russian economy. Foreign investors operating at the retail level where hard cash is a fundamental part of business are particularly susceptible. They are not excluded from the gangster’s tactics of “offering” protectionism (Fifty-two Percent Believe 11). In some cases, the mafia has succeeded in expelling the foreign owner. Specifically this has happened to a Canadian-owned wholesale electronic good franchise, and Italian merchant of leather goods, and an Estee Lauder shop (Washington Post C2). Russia has taken several steps to stop crime such as protectionism and the Russian mafia. Yeltsin has granted the police various powers to confront these dilemmas. The decree Yeltsin issued permits police to detain organized crime suspects for thirty days without caus...
