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Eurasia Daily Monitor
Volume 5, Number 18
January 30, 2008
WILL RUSSIA'S NEXT ANTI-CORRUPTION CAMPAIGN SUCCEED
WHERE OTHERS FAILED?
By Jonas Bernstein
In his January 22 speech to the Civic Forum, a gathering of representatives
from Russian non-governmental organizations and other groups sponsored by the
Kremlin-appointed Public Chamber, President Vladimir Putin's likely successor
declared that the fight against corruption must become a "national program."
First Deputy Prime Minister Dmitry Medvedev also called Russia a country of
"legal nihilism" that manifests itself in the form of "crime," including
"corruption in the power bodies," which, he said, exists on a "huge scale" in
Russia today. No European country can boast of such "disdain for the law,"
Medvedev said. The heir apparent returned to this theme in his January 29 speech
to a convention of the Association of Russian Lawyers, where he is chairman of
the board of trustees, calling on fellow lawyers to take a more prominent role
in society and to battle "legal nihilism" (Moscow Times, January 30).
Fighting corruption is, without doubt, the hardy perennial of Russian
politics. Back in 1994, then-president Boris Yeltsin declared in his annual
state-of-the-nation address that the mafia had Russia "by the throat" and that
the population was at the mercy of an army of corrupt bureaucrats. He returned
to the theme again in his 1997 state-of-the-nation address, stating that the
public had lost faith in the government's ability to halt "the onslaught of
crime" and blaming state bureaucrats "who think only about their own well-being"
for this sorry state of affairs. Yet despite the appointment of yet another team
of putative "reformers" to deal with the problem, Yeltsin ended his presidency
in 1999 mired in accusations of corruption within his own inner circle.
Vladimir Putin began his presidency promising to end the disorder of the
Yeltsin era and to establish a "dictatorship of law." He then proceeded to jail
a leading tycoon, whose only real difference from the country's other tycoons
was that the media outlets he owned were openly critical of the Kremlin. While
Putin continued to move against the oligarchs selectively – and, on the pretext
of imposing order, moved to centralize power and curtail Russia's
already-stunted and illiberal democracy – little seemed to change in terms of
overall corruption in Russia.
Indeed, according to one indicator – Transparency International's annual
Corruption Perceptions Index (CPI), which measures perceived corruption around
the world based on polls and surveys – corruption in Russia remained rather
stable between 1998 and 2007, reaching a "high" of 2.1 out of 10 in 2000 and a
"low" of 2.8 in 2004 (on a scale in which a score of 10 means no corruption and
a score of 0 means total corruption). For 2007, the Berlin-based corruption
watchdog gave Russia a score of 2.3 (compared with 2.4 in each of the final two
years of the Yeltsin era, 1998 and 1999) and put it in 143rd place out of 179
countries – a spot shared with Gambia, Indonesia, and Togo, just ahead of (that
is, slightly more corrupt than) Syria and right behind (slightly less corrupt
than) Angola.
The CPI would seem to bear out Medvedev's observation that corruption in
Russia's "power bodies" exists on a "huge scale" – all of which, it might be
added, constitutes a damning indictment of the efficacy of Putin's "dictatorship
of the law." Yet according to at least one observer, the situation is even worse
that Transparency International's CPI would indicate.
Georgy Satarov, the former Yeltsin aide who heads the INDEM Foundation, which
has extensively studied the issue of corruption, wrote on the Ezhednevny Zhurnal
website earlier this week: "The growth in business corruption recorded by our
diagnostic sociological research of corruption in 2001 and 2005 can be called
catastrophic. Judge for yourself. The growth of the average size of a bribe
during the period can be characterized as follows, taking into consideration
inflation, GDP growth, the turnover of firms, and other economic dynamics. In
2001, an average-sized bribe could buy 30 square meters of habitation according
to the average Russian prices on the primary [real estate] market (a piece of a
single-room apartment). In 2005, an average sized bribe could buy 209 square
meters – [a few] apartments. Is it any surprise that youth now want to be
officials, and not businessmen?" (Ej.ru, January 28).
According to Satarov, INDEM's research found that the size of the bribe
required to be named a government minister during the Putin period was 150 times
higher than during the Yeltsin period and that while standard size of a kickback
in 2000 was 10-15% of the value of the government contract, order, purchase,
etc., it reached 30-50 % by 2005 and today is in the range of 50-70%. Satarov
also cited the magazine Ekspert as reporting in 2005 that approximately 80% of
the federal funds allocated for military R&D projects was stolen and quoted
former Economic Development and Trade Minister German Gref as saying that after
he sharply reduced the number of types of activities requiring licensing, the
size of bribes in those areas that still required licenses grew ten-fold (Ej.ru,
January 28).
Thus while it is possible that Medvedev's declared battle against "legal
nihilism" might succeed where Yeltsin's pledges to fight corruption and Putin's
"dictatorship of the law" failed, it may be time to recall the phrase made
famous by former prime minister Viktor Chernomyrdin: Khotelos kak luchshe, a
poluchilos kak vsegda – "We wanted better, but it turned out as always."
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