Preview

Underground Economy in Russia: the Size and Specific Features

Powerful Essays
Open Document
Open Document
5081 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Underground Economy in Russia: the Size and Specific Features
TABLE OF CONTENTS

TABLE OF CONTENTS 2

INTRODUCTION 3

CHAPTER 1 The notion and essence of underground economy 4
1.1 Definition of underground economy 4
1.2 Structure of underground economy 5

CHAPTER 2 Reasons for underground economy development and its history in Russia 7
2.1 Reasons for underground economy appearance 7
2.2 Reasons for small enterprises to go underground 8
2.3 From Soviet underground economy to Russian 9

CHAPTER 3 Underground economy in modern Russia 12
3.1 Size of underground economy in modern Russia 12
3.2 Specific features of underground economy in Russia 13

CONCLUSION 17

ENDNOTES 18

BIBLIOGRAPHY 19

INTRODUCTION
The attention of russian publicity today is mostly absorbed to the phenomenon of underground economy.
Underground economy is subject, which is very complicated for the research. This is the phenomenon which could be easily defined but can not be exactly estimated, because all the information, gained is confidential and is not to be made public.
Underground economy is interesting, first of all, because of its influence on the passing of majority of usual processes and economic phenomena. This influence of underground economy in Russia is so large that it needs to be analyzed.
Russia is going through very difficult period in its history, characterized by the unprecedented scale of fundamental reforms in political and economic systems. Quite real results in economic reforming are achieved: forming of market infrastructure and market mechanisms of production stimulation, the phenomenon of goods shortage is eliminated and the positive balance of external trade is constantly provided.
At the same time the forming of market economy has called into being the number of negative phenomena and processes. One of them is the underground economy. It includes various kind of economic activity, which differently influence economic development and economic safety of Russia.
The urgency of the chosen problem does not



Bibliography: 1. McConnell, Brue. Economics. McGraw-Hill Higher Education, 2002 2. Jim McTague 6. Hannz F. Sennholz. The Underground Economy. Ludwig von Mises Institute. Online edition, 2003. 7. ????? ?.?. ?????? ?????????. ?????, 2006 8. ????? ?.? 9. ?????????? ?. ??????? ?????????: ??? ?? ???????. ????????? ?????? XXI ???, 2001 // http://www.ruseconomy.ru/nomer1_200101/ec27.html 10. ?????????????? ??????? ?????????: ???????? ???????? ? ??????? ?? ???????? ???????? 11. ????????? ?.?. ????????????? ????? ? ???????? ? ??????. ????, 2001 12. ??????? ?

You May Also Find These Documents Helpful

  • Satisfactory Essays

    The black market is not a physical place, but rather an economic activity in which merchandise and/or services are bought and sold illegally. Also called the “underground market,” this market gets its name from the activity it conducts out of sight and often outside the sight of law enforcement. The black market or buying and selling of products and services take place often in plain sight. A black economy is a highly organized and a vast market where the regular taxation rules and norms of trade are not adhered to. The variety of goods traded in the black market is enormous and the most commonly traded black market items are weapons, drugs and alcohol at the least.…

    • 469 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Between 1750 and 1914, England, Germany, and Western Europe were all expanding. England was gaining land and trust in the Middle East, Germany was becoming an established nation, and Western Europe was thriving due to the Industrial Revolution. After recognizing all of this, Russia decided it was time for reform or be left in the dust. This caused major changes in Russia’s labor system such as emancipation of the serfs and industrialization to keep up with the changing world. Although they were going through these changes, there were continuities such as the treatment of the serfs and the type of reform they were doing.…

    • 565 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    The words of Leon Trotsky, said decades before the eventual demise of central planning, highlight the underlying flaw of the planned economic system; lack of information. The central planner’s realized that the information and signaling required for any modern economy could be found more effectively in a market based system and consequentially central planning was abandoned. The systemic failure of central planning due to poor information was most prevalent in Eastern Europe and the USSR, as evidenced by their economy’s productive inefficiencies, allocative inefficiencies and pricing difficulties. This essay will classify the traditional soviet economy and examine the production, allocation and pricing difficulties which caused its end.…

    • 2648 Words
    • 11 Pages
    Powerful Essays
  • Good Essays

    The torpor of the Russian economy compared to other European Great Powers was a prominent predicament to both Alexander III and Nicholas II. In order to sustain Russia’s Great Power status, both Tsars engaged in a policy of economic renewal between the years 1881 and 1095. Despite success in managing to proliferate economic growth rates, the attempts of economic reform between 1881 and 1905 weren’t sufficient in order to make Russia’s economy strong enough to fully maintain Russia’s ‘Great Power’ status as Russia still lagged behind the other Great Powers come 1905. (92)…

    • 756 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Between 1800 and 1939 Russia underwent through a severe regime change. The people of Russia were in a state of great economic disparity, and the lower class faced hunger, poverty, etc. The lower class had very little of the grain, land, and fiscal control that was available in Russia, such pretext of large income disparity gaps and unbalanced control of GDP were the pre-requisites se in place for the takeover of socialism. And such is what happened. Within this time period Russia went through a proletariat revolution of communism aiming have the workers of the world unite and free themselves from capitalist oppression to create a world run by and for the working class. However even though they underwent this major social-economic change, conditions in Russia stayed around the same. We still saw that Russia was under leadership of a Totalitarian authority. And maintained the same economic conditions where the consumer-based market never developed and the population was largely rural and the economy was agricultural based.…

    • 837 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    heyo potao

    • 1486 Words
    • 8 Pages

    Describe and analyze the long-term social and economic trends in the period 1860 to 1917 that prepared the ground for revolution in Russia.…

    • 1486 Words
    • 8 Pages
    Satisfactory Essays
  • Good Essays

    russian gulag

    • 946 Words
    • 3 Pages

    During 1917-1960, the Communist Party leaders and Soviet government considered that in order to secure the political stability and to conserve and strengthen positions of their social status, they needed working class, which must be kept under control. The GULAG Camp system was the best option. Lenin initiated the GULAG Concentration Camps after the 1917 Bolshevik Revolution and they grew tremendously during Stalin’s era. The system used to isolate people that were against government and the system, who were socially dangerous, disobedient, suspicious or untrustworthy, thoughts that were preventing the dictatorship of the government. The GULAG, which is called “Correction By Forced Labor”, became a cheap labor force formed by prisoners. The economic system needs were responsible for GULAG formation that possessed both punitive and economic functions for Russian industry. The use of GULAG cheap physical labor in remote areas of the country made a significant contribution to the industry.…

    • 946 Words
    • 3 Pages
    Good Essays
  • Good Essays

    The economy of the Soviet Union was based on a system of state ownership of the means of production, collective farming, industrial manufacturing and centralized administrative planning. Starting in 1924, with Stalin rising to power, the period of the centralized economy made the central government of Russia formulate all economic decisions. The command economy was one of the key features of the Soviet society, however, it came with benefits and setbacks. For example, an advantage would be low levels of employment and a disadvantage would be lack of competition. A major strength was an enormous supply of oil and gas.…

    • 276 Words
    • 2 Pages
    Good Essays
  • Better Essays

    Bolsheviks Primary Source

    • 981 Words
    • 4 Pages

    It shows the inefficiency of the economic system, the endemic corruption and the cruel way it was dealt with. The tightness of the regime points out the fear of the Bolsheviks and the fact that the Government didn’t have the situation under control, after all. However, the positive tone Bessy adopts in her book and the way she tried to put blame on the mobs in order not to damage the bolshevik’s reputation puts this source and doubt and lessens it’s value to an historian. The most important conclusion one can draw from this document is that the Bolshevik’s economic approach wasn’t functional and it was starting to cause food shortages and unrest within the population, ideas which are reinforced by Source…

    • 981 Words
    • 4 Pages
    Better Essays
  • Good Essays

    Socially, Russia was under the state of hierarchy, where it was divided into social classes. At this point in Russia’s history, Russia was ruled under the Tsarist Autocracy where the Tsar, only governed Russia and made all the decisions. Under him came the “civil servants”. At the top were ministers in charge of the government departments, and the bottom was made up of the minor ministers like customs inspectors and office clerks. They were usually underpaid, therefore, took constant bribes.…

    • 1244 Words
    • 5 Pages
    Good Essays
  • Better Essays

    Organized Crime In Russia

    • 951 Words
    • 4 Pages

    Organized crime is defined as a category of transnational, national, or local groupings of highly centralized enterprises run by criminal, who intend to engage in illegal activity, most commonly for money and profit. Often in organized crime groups, we seek out the difference between the groups, But in reality they have many similarities that we do not notice, like the group's emergence or their social change.…

    • 951 Words
    • 4 Pages
    Better Essays
  • Better Essays

    One of the biggest shadows covering the world, that not many people pay attention to, is an economy that millions of people work on knowingly or unknowingly. This economy has been around for hundreds of years and is starting to grow exponentially right under the noses of every country. It is well known for its criminal nature, but is that the entirety of it? Black Markets certainly have an impact on the Global Economy that so many people work in everyday. While talking about economics can be rather boring, there is more to it than the flow of money. Black Markets fall under the Informal Economy which is very eye opening and exciting if given the correct facts. Black Markets are not primarily used for criminal gain, rather to help those less…

    • 1238 Words
    • 5 Pages
    Better Essays
  • Satisfactory Essays

    After the fall of communism in the Soviet Union in 1991, organized crime in Russia saw it as an opportunity to gain power and become a big influence in the Russian community. Shaped through communist leaders during the soviet era it helped them take control of the economy and influence Russian society. The following paper will consist of a general research of the Russian mafia, meaning their history before the Soviet Union and during the Soviet Union with their corrupt government, the influence they have in political matters and finally how organized crime in Russia affects the Russian economy. Basing my information off scholarly books and articles, the text provides information about the rise of the Russian mafia and their journey through…

    • 174 Words
    • 1 Page
    Satisfactory Essays
  • Powerful Essays

    The nature of Stalin's economic policies and their impact on the people of Russia is a widely debated topic. It's also a difficult topic on which to focus an enquiry, complicated as it is by the reluctance of the Soviets to release all relevant documents, and the political views of those interpreting to documents, driven as many were by their own agendas. However, the documents that have been selected for this enquiry have been chosen for the light they shed on the problem and in the expectation that they will enable a conclusion, however provisional, to be drawn.…

    • 1864 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    The Underground Economy

    • 2749 Words
    • 11 Pages

    Measuring the size of the underground economy is, of course, more art than science, since most of its denizens seek to remain anonymous. But convincing anecdotal evidence and a number of credible academic studies suggest that it is expanding briskly -- probably by an average of 5.6% a year since the early 1990s, edging out the real economy. [Underground…

    • 2749 Words
    • 11 Pages
    Good Essays

Related Topics