Business and the State in Contemporary Russia by Peter Rutland

By Peter Rutland

Business and the country in modern Russia is the newest quantity within the John M. Olin severe concerns sequence, released by way of Westview together with Harvard’s Davis heart for Russian learn. during this newest set up, participants talk about concerns as far-ranging because the dynamics of rule in modern Russia, the banking elite, the politics of the Russian media enterprise, the political economic system of the Russian oil and coal industries, and the reasons and results of the August 1998 crash.

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This core group has been joined by new elements that now constitute one-third of the whole—entrepreneurs without government money and contacts, and people with links to organized crime, who did not occupy leadership DONALD N.

G. Baranov and Ye. Kiseleva, "An insider in the government," Kammeraant-Den 'gi, 15 May 1998, pp. 13-16. 33. Peter Rutland, "Lost opportunities; The political economy of Russia's energy sector," Bulletin of the National Bureau of Asian Research, November 1997. 34. Import tariffs were raised by 3 percent in July 1998, in the face of a looming trade deficit (Kommersant-Daify, 21 July 1998). 35. Russkii telegraf, 25 April 1998. 36. For example, the director of the AvtoVAZ plant in Togliatti, Vladimir Kadannikov, was Yeltsin's second choice for prime minister, after Viktor Chernomyrdin, in December 1992, and later became a deputy prime minister.

Especially influential entrepreneurs have gotten rich, with, government support, by stripping Russia of oil, natural gas, and other resources and salting away profits abroad DONALD N. JENSEN 35 rather than reinvesting them in the country's development. Corruption— the modern equivalent of kormlenie—is widespread. The government continues to hold large blocks of shares in key industries, often in natural resource extraction. 6 The culture of the Russian ruling elite traditionally centered on the tsar, who refereed and balanced the competition among elite and princely clans for his favor as well as for political, coercive, and economic advantages.

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