2 ms·
This very much applies to the de-facto economic system in Russia. Not on the parking meter level, but more that you cannot run a moderately-sized business witho
by john_moscow 6y ago
This very much applies to the de-facto economic system in Russia. Not on the parking meter level, but more that you cannot run a moderately-sized business without being a part of a corrupt network originating from the early post-USSR mafia.
The biggest trouble with this model is the lack of long-term predictability. Sure, you can pay your protection money and operate your business today, but the next day your "supervisor" gets on bad terms with his superiors and gets replaced. Their successor may simply not like you (or have their own protege to take your place) and then you're basically screwed. Your business gets raided, your family is taken hostage, you will be happy if you're left alive after basically donating your share to somebody who had better connections.
As a result, nobody wants to do long-term investments. Business that cannot be promptly liquidated is not not worth the hassle. Assets that cannot be transferred outside of Russian jurisdiction in case shit hits the fan are liabilities. So the economy boils down to extremely corrupt oil/gas companies owned by people from Vladimir Putin's personal network, and rather rare mom-and-pop shops that sort of fly under the radar until they don't.
I hope this model isn't coming to the West, since it's simply incompatible with economic prosperity.