Crony capitalism in contemporary Russia and what globalisation has to do with it

Abstract

This chapter argues that there is often a strong trend away from pluralism and competition both in the economy and political spheres motivated by the central defining features of crony capitalism. Vladislav Surkov, the deputy chief of the Presidential Administration and Vladimir Putin’s political demiurge in the first decade of the 2000s, once noted that Russia’s main problem is the absence of nationally minded elites. He argued that the contemporary Russian ruling elite are more of an “offshore aristocracy” that deems Russia a “free hunting zone”. Russian crony capitalism and authoritarianism cannot be understood without considering the role of globalisation and, particularly, the global financial system in which Russian capital is well integrated. A very productive debate on this subject revolved first around the issue of state-business relations and their effects on domestic institutions and property rights. Economic concentration in Russia has been accompanied by de-privatisation trends, particularly in the energy sector.