The Effects of Organized Crime on Russia's Economic Reform

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Angela Tien The Effect of Organized Crime on Russia’s Economic Reform
With Russia’s extensive history, there is no saying that organized crime is not an issue of this nation. Organized crime promotes the overall performance of the economy in Russia, and it was also a problem during the rise of democratic Russia. Influence from organized crime is harmful internally, yet beneficial to Russia on a global scale. Although the Russian economy thrives as a nascent country experiencing capitalism and democracy, it is deteriorating from the core of their government from corruption. Several factors minister the failure of Russia’s economic reform. Corruption, change in political and economic concepts, and the ever-expanding global economy have fueled the power and influence organized crime has asserted on Russia’s economic reform.
The impact of organized crime on Russia’s economic reform is significant to both the development and adherence of Russia’s previous economy by incorporating elements of transitions such as corruption and revolutions in both capitalist and democratic ideals, at the same time establishing and preserving an influential association with the global economy while constituting achievements within it, which reflects on their economy today.
Background:
When Stalin proposed freedom to the prisoners in the Soviet Union in exchange for fighting in World War Two, he had upset the entire perennial system of the “Code of Thieves”, an underground colony of criminals. There was no knowledge of the repercussion that Stalin’s actions would alter. The “Thieves” had evolved into a much more sophisticated group of criminals, after the betrayal of those who enlisted to work with the government. Later, as the Soviet Union fell apart, it gave birth to the Red Mafia, otherwise known as the Russian Mafia. Previously, the Cold War contributed to the augmentation of the Russian Mafia too, like Stalin. Ruined, Russia’s economy was devastated. Subsequently, with



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