Corruption and the Russian Economy

Many economic opportunities are being irrevocably lost each year in Russia because of administrative corruption, excessive regulation, and discretionary abuses by regulatory agencies and law enforcement authorities. The combination of these problems together with recent economic crises has created a considerable drag on entrepreneurial activity, amounting to a tremendous reduction in the number of entrepreneurs in Russia in the last decade. The decline of an entrepreneurial spirit is also compounded by threats of unlawful property seizures and the danger of unjust imprisonment by public authorities. These negative trends keep Russia’s economy on an unproductive trajectory of a resource-dependent country that lacks modern technology and diversified production.