Research the Essential Factors of Russian Economy Problems

RUSSIAN ECONOMY PROBLEMS
Name:
Institutional Affiliation
Russian Economy Problems
One of the essential factors that need to be noted in the rise of the uber-rich within the Russian economy is attributed to the element of corruption. In as much as Putin has incorporated approaches aimed at mitigating corruption, this problem still remains widespread in Russia. According to a survey conducted by a Russian Business Association, most of the entrepreneurs in Russia experience corruption on a daily bases. This survey also established that among households, the aspect of corruption is considered to be the largest problem within this economy.
The price tagging of corruption in Russia remains a challenge since the nation spends close to $300-$500 dollars each and every year to curb corruption. The primary causes of corruption in Russia is attributed to the size of the nation that allows bureaucrats to have the opportunity to engage in corrupt practices. In this case, the negative effects of corruption in this state have affected the Russian economy immensely (Ionescu, 2011). The implications of the acts of corruption in this nation therefore affect the economy of Russia. Russia experience corruption in areas where there are heavy concentrations of bureaucratic activities that exists within the state. In as much as the urban centers of this nation enjoy the aspect of the economies high gross national product per capita (GPA), there is a constrain on the bureaucratic activities of the nation that are considered to outweigh the beneficial factors that are provided by the state. It is additionally essential to determine that Putin’s efforts to increases the capacity of the Russian economy is considered as one of the primary reasons that contributed to the expansion of bureaucracy.
In countries like Russia where the intensity of corruption is high, compensation levels meant for bureaucrats prompts significant debate. A large number of people argue that the most effective method of dealing with corruption is by increasing the bureaucrats’ salaries so that they would not be tempted to take bribes. However, increasing the salaries in the public sector is not considered as a remedy for dealing with corruption. Mostly, huge salaries do not provide adequate income to substitute the much received by the bureaucrats illegitimately (Ionescu, 2011). Additionally, salaries should be raised to bureaucrats who are considered as honest and would not obtain bribes if they were able to make a minimally adequate living. In spite the fact that Russia has made efforts to implement this method, very minimal effect has been realized so far. For example in Russia, salaries of their judges have been greatly increased whereas corruption has been noted to have increased in that same branch of the government. Generally, the amount of salaries for all public servants in Russia has been raised while the level of corruption still remains high. It is essential to consider the fact that the existing bureaucracy work with minimum supervision and sometimes none at...