IT IS A GIVEN THAT THE QUALITY OF GOVERNANCE MAKES a difference. It determines the developmental trajectories of states and it influences the everyday lives of their citizens. Why are some countries governed worse than others? In particular, why is contemporary Russia governed so much worse than one would expect, judging by its degree of socioeconomic development? In comparative perspective, Russia is an example of a highcapacity authoritarian state, which exhibits the major features of bad governance, such as lack and/or perversion of the rule of law, rent-seeking, corruption, poor quality of state regulation, widespread public funds abuse, and overall ineffectiveness of government (Gel'man 2017, p. 498). These features have been demonstrated in numerous recent assessments of Russia vis-à-vis other countries, conducted by various agencies. For example, Russia ranked as 137th out of 180 countries in the 2019 Corruption Perception Index. 1 In 2020, the composite evaluation of the rule of law index by the World Justice Project ranked Russia as 94th out of 128 countries. 2 In the period 1996-2015, the average indicator of corruption control in Russia, according to the World Bank, was −0.86 on a scale from −2.5 (lowest possible grade) tо +2.5 (highest possible grade). 3 This is why the overall picture of patterns of governance in Russia remains rather gloomy even vis-à-vis some of its post-Soviet neighbours (Zaostrovtsev 2017) and the BRICS countries (Taylor 2018, pp. 159-60). However, one should go beyond these statistics and address two more basic questions: what are the sources and mechanisms of governance in Russia? Is bad governance doomed to persist endlessly, or can the quality of governance be improved over time by certain policies?Francis Fukuyama has defined 'governance' as the 'government's ability to make and enforce rules, and to deliver services, regardless as to whether that government is democratic or not' (Fukuyama 2013, p. 350). From this viewpoint, governance is different from both state capacity, which is related to the state's coercive and infrastructural potential to conduct certain policies, and state autonomy, which is related