This book is distinctive in at least three ways. Firstly, the authors approach economic crime in Russia without its a priori stigmatization as part of the general `criminalization' of the economy. Rather they view it as a generic response to and integral part of the post-Soviet transition, and analyze the role of economic crime in the functioning/subverting of state, market and civil society institutions in the new Russia. Secondly, the book reveals the latent constituents of economic crime -- the customary practices which are so widespread that they become commonly accepted or tolerated in society, but at the same time constitute and nurture an environment for economic crime. Thirdly, it offers clues for solving some of Russia's paradoxes: How do people survive if wages are not paid on time or in full, and even when paid, are still inadequate for basic living standards? If the rule of law does not rule, then what does? What are the rules of the alleged Russian disorder? How is it possible to combat corruption in a society where supposedly no agency or institution is free from it? Most forms of Russian economic crime in the 1990s are examined in this book. The authors demonstrate how change and continuity are both factors which are crucial to an understanding of the post-Soviet order and to account for the difficulties of democratization and marketization in Russia. This work challenges the supposed transparency of the post-Soviet Russian economy for the outside world and shows how the Russian economy really works. The idea for this book arose out of the East European Regional Programme at the 16th International Symposium on Economic Crime, held at Jesus College in Cambridge in September 1998. It includes papers presented at the Symposium together with new papers commissioned especially for this volume.

This book examines the little-known phenomenon of blat--the use of informal contacts and personal networks to obtain goods and services under the rationing that pervaded Soviet Russia. Alena Ledeneva analyzes the historical, socioeconomic and cultural aspects of blat, and explores its implications for post-Soviet Russia. The political and economic reforms introduced since the collapse of the Soviet Union have radically affected everyday practices, but an understanding of blat remains crucial for interpreting the social, economic and criminal problems that affect the development of a market economy in post-Soviet Russia.

In this original, bottom-up account of the evolution of contemporary Russia, Alena Ledeneva seeks to reveal how informal power operates. Concentrating on Vladimir Putin's system of governance - referred to as sistema - she identifies four key types of networks: his inner circle, useful friends, core contacts and more diffuse ties and connections. These networks serve sistema but also serve themselves. Reliance on networks enables leaders to mobilise and to control, yet they also lock politicians, bureaucrats and businessmen into informal deals, mediated interests and personalised loyalty. This is the 'modernisation trap of informality': one cannot use the potential of informal networks without triggering their negative long-term consequences for institutional development. Ledeneva's perspective on informal power is based on in-depth interviews with sistema insiders and enhanced by evidence of its workings brought to light in court cases, enabling her to draw broad conclusions about the prospects for Russia's political institutions.

This book examines the little-known phenomenon of blat--the use of informal contacts and personal networks to obtain goods and services under the rationing that pervaded Soviet Russia. Alena Ledeneva analyzes the historical, socioeconomic and cultural aspects of blat, and explores its implications for post-Soviet Russia. The political and economic reforms introduced since the collapse of the Soviet Union have radically affected everyday practices, but an understanding of blat remains crucial for interpreting the social, economic and criminal problems that affect the development of a market economy in post-Soviet Russia.

During the Soviet era, blat the use of personal networks for obtaining goods and services in short supply and for circumventing formal procedures was necessary to compensate for the inefficiencies of socialism. The collapse of the Soviet Union produced a new generation of informal practices. In How Russia Really Works, Alena V. Ledeneva explores practices in politics, business, media, and the legal sphere in Russia in the 1990s from the hiring of firms to create negative publicity about one's competitors, to inventing novel schemes of tax evasion and engaging in "alternative" techniques of contract and law enforcement.

Ledeneva discovers ingenuity, wit, and vigor in these activities and argues that they simultaneously support and subvert formal institutions. They enable corporations, the media, politicians, and businessmen to operate in the post-Soviet labyrinth of legal and practical constraints but consistently undermine the spirit, if not the letter, of the law. The "know-how" Ledeneva describes in this book continues to operate today and is crucial to understanding contemporary Russia."

In this original, bottom-up account of the evolution of contemporary Russia, Alena Ledeneva seeks to reveal how informal power operates. Concentrating on Vladimir Putin's system of governance - referred to as sistema - she identifies four key types of networks: his inner circle, useful friends, core contacts and more diffuse ties and connections. These networks serve sistema but also serve themselves. Reliance on networks enables leaders to mobilise and to control, yet they also lock politicians, bureaucrats and businessmen into informal deals, mediated interests and personalised loyalty. This is the 'modernisation trap of informality': one cannot use the potential of informal networks without triggering their negative long-term consequences for institutional development. Ledeneva's perspective on informal power is based on in-depth interviews with sistema insiders and enhanced by evidence of its workings brought to light in court cases, enabling her to draw broad conclusions about the prospects for Russia's political institutions.

During the Soviet era, blat the use of personal networks for obtaining goods and services in short supply and for circumventing formal procedures was necessary to compensate for the inefficiencies of socialism. The collapse of the Soviet Union produced a new generation of informal practices. In How Russia Really Works, Alena V. Ledeneva explores practices in politics, business, media, and the legal sphere in Russia in the 1990s from the hiring of firms to create negative publicity about one's competitors, to inventing novel schemes of tax evasion and engaging in "alternative" techniques of contract and law enforcement.

Ledeneva discovers ingenuity, wit, and vigor in these activities and argues that they simultaneously support and subvert formal institutions. They enable corporations, the media, politicians, and businessmen to operate in the post-Soviet labyrinth of legal and practical constraints but consistently undermine the spirit, if not the letter, of the law. The "know-how" Ledeneva describes in this book continues to operate today and is crucial to understanding contemporary Russia."