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Can Russia Modernize? A sociologist’s perspective

By Blog Admin, on 17 March 2014

Can Russia Modernise ThumbnailIn her 2013 book Can Russia Modernise? Alena Ledeneva picked out key types of networks that make up sistema:  Russia’s complex, ambiguous and sometimes surprisingly effective system of informal governance. In the first part of a three-part ‘mini-symposium’,  Katharina Bluhm assesses the book and its arguments from a sociologist‘s perspective.

Alena Ledeneva is the author of several books all of which centre on informal economic and governance practices in Russia. Her three monographs Russia’s Economy of Favours (1998), How Russia Really Works (2006), and Can Russia Modernise? (2013), can be read as a trilogy. In Russia’s Economy of Favours the centre of attention was the everyday exchange systems of normal people, while in How Russia Really Works Ledeneva’s focus shifts towards business and the asset stripping that takes place through complex inter-firm relationships. Her newest book explores Russia’s power networks and systems of informal governance or sistema.

The 2006 and 2013 books share one particularly important question: Can Russia modernize? In How Russia Really Works Ledeneva asks how Russia’s unwritten rules can be changed, or whether in fact they can. Her answer is laced with scepticism. She points to the fact that over the past decade, actors have fought bitterly over the rules of the game: for example the support for shock-therapy of Western aid programmes and advisers aimed at the rapid installation of a new market economy, or the foreign investors who have tried to introduce Western business practices being studied in Russian business schools today. Small entrepreneurs have called for more transparency in the way business is done.

Russia is now a member of the World Trade Organisation, and Putin once called for a ‘dictatorship of law’ and – at least according to some observers – Medvedev really was interested in changing the rules of the game, but just did not get very far in his efforts. Ledeneva concludes that in order to overcome the informal rules it is ‘simply not enough to transform the formal rules and the way they are enforced. (more…)

Russia: Back to no future

By Blog Admin, on 18 June 2013

Moscow Russia anti-Putin Graffiti R-EVOLUTION-2

Photo: Victorgrigas via Wikimedia Commons

With his regime running out of steam, Vladimir Putin is resorting to the rhetoric of the past and traditional values. Marie Mendras sees little future in it. 

The moment of truth for a non-democratic leader is when he needs to revive his fading authority and legitimacy. A snatched electoral victory over a year ago brought Vladimir Putin no new popularity, indeed quite the opposite.

Since his return to the Kremlin, his words and actions have reflected entirely negative emotions, such as fear of his own people, distrust of the elites around him, and a desire to avenge himself on those who have dared oppose him. Much of his energy goes on proving himself right and his critics wrong: he even accuses these of working for foreign powers and endangering national security. Putin has not recovered from the humiliation and scare of last year’s political contest, and is now facing tough economic and social challenges. The choice he has made is to try to restore his authority with a combination of targeted repression, doctrinaire ideology and an increase in control over institutions and companies. This is an unlikely recipe for success.

Weakened legitimacy

Vladimir Putin was re-elected on a controversial vote in March 2012. He could have won his new mandate more honestly, had he accepted the possibility of a second round runoff, but he was determined to win an absolute majority in the first round. He wanted to humiliate the other ‘authorised’ candidates by raising himself high above them, proving that he was the one and only – and a loyal Central Electoral Commission conferred on him a generous 63% of the vote. A year on, all the voters’ associations and NGOs that investigated election fraud are being harassed and some, like the Golos association, might have to close down. Key figures in the movement for free elections are also being prosecuted.

Putin’s election in 2000 and 2004, and Dmitry Medvedev’s election in 2008, were ‘managed’ ballots as well. This time, however, things turned out less manageable than usual. The widespread and vocal public protest of the winter of 2011-12, news of which flew around the country in a few keystrokes, exposed all of the regime’s rottenness and trickery. And the anger of a revitalized civil society was directed at the leader in person, under the ubiquitous slogan: ‘Putin, ukhodi!’ [Putin – out!]. His party fared badly in the parliamentary elections of December 2011, and in Moscow itself its performance was a complete disaster.

Throughout the 2000s, Vladimir Putin built his power and legitimacy on order, rising living standards and Russia’s growing global status. However, he will have more difficulty delivering in all three of these areas in the months and years to come, and he will be held to account for it. (more…)

Boris Berezovsky: An unwanted ‘wanted man’

By Blog Admin, on 25 March 2013

Boris Berezovsky

Photo: AJC1 via Flickr License CC BY-SA 2.0

Alena Ledeneva looks back on the career of the controversial Russian oligarch.

Boris Abramovich Berezovsky was born on 23 January 1946 and died on 23 March 2013.  Although hated by many Russians, Berezovsky was also one of the most politically important, exposed and most widely written about figures in Russia of the 1990s. For many he was a symbol of that era.

 Berezovsky’s rise to become one of Russia’s richest men has been chronicled in both journalistic and fictionalised accounts. Godfather of the Kremlin by Paul Klebnikov, the Forbes journalist murdered in Moscow in 2004, Bol’shaya paika (‘The Big Slice’) a novel by Yuli Dubov, Berezovsky’s business partner and friend – who like him received political asylum in the United Kingdom – are among the most interesting.  The film Oligarkh (Tycoon) also features a main character very like Berezovsky.

 After graduating in 1968, Berezovsky worked at various research institutes to become a senior fellow and a head of department at the Institute of Management of the Russian Academy of Sciences. His energy, creative spirit and talent for working through the Soviet system served him well and helped shape his success in the post-communist era.

 In 1989, Berezovsky and Samat Zhaboev organized a joint stock company LogoVaz, which specialised in selling and servicing cars. In four years Logovaz became one of the leading Russian private businesses with a turnover of US$250 million in 1993. Berezovsky became  the chairman of the LogoVaz Board in 1994.

Despite the dangers of Russia’s post-communist business environment – he survived an assassination attempt in June 1994 in which his driver died – Berezovsky moved on to acquire media and oil interests.  In January 1995 he participated in setting up the ORT television channel joining its board of directors and in September 1996 he was elected to board of the Siberian oil company Sibneft. Berezovsky’s financial schemes – of the kind I examine in more detail in How Russia Really Works  – were also the inspiration for a post-communist genre of literature often known as ‘economic thrillers’. (more…)