Cambridge University Press) name the formation of organizations capable of effectively restricting violence in society as a necessary condition for transition from developing societies to societies with sustainable economic growth. However, the mechanisms of emergence and conditions for the operation of such organizations in contemporary developing countries remain unclear. We follow the logic of formation of such organizations using the case study of collective actions of the Russian business community aimed at restricting "state violence" against business. We seek to identify the conditions leading to a shift in the choice of strategies from attempts at informal agreements with extortionists controlling means of coercion to cooperation of businessmen and trace the further evolution of organized forms of collective action. Finally, we assess to what extent the created organizations can be efficient and self-supporting in the long term.
This paper discusses Russia's "black cash" economy. Using interviews and survey data, we examine the mechanics of several distinctly Russian tax evasion schemes and attempt a rough estimate of the scale and dynamics involved in tax evasion based on black cash. Entrepreneurs' opinions are also used to get an idea of the incentives and costs of black cash tax evasion. We next describe the apparent economic consequences of black cash tax evasion and formulate general formal conditions for successful evasion at firm level. Finally, we recommend several policy measures to reduce the incentives to such behaviour and discuss questions for future research.
This paper considers current contradictions in state-business relations in Russia. On one hand, the Russian political elite needs economic growth to keep social stability in the country and to limit mass protesting in big cities. Economic growth is impossible without investment, which explains Russian leaders' increased interest in improving Russia's business climate. On the other hand, influential interest groups (represented first of all by security and law enforcement agencies) try to expand their control on rent sources in the economy. These groups of interests could strengthen their positions due to fear of political protests. This strong conflict among different groups in the Russian elite creates additional uncertainty for investors and the business community, and can lead to economic recession independent of the level of oil prices and dynamics of global markets. Reversing these negative trends in economic development will be possible only with collective actions of different economic and political actors (including technocrats in federal and regional governments, representatives of large and successful middle-sized business and topmanagers of public sector organizations) in the search for pragmatic solutions to the challenges faced by Russian economy and society.
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