The Phenomenon of 'Russian mafiya' in the Process of Russian Capitalism: Behavioral Analysis
In tandem with a growing influence and an elevated stature of Russia in the international community as a result of economic progress since the turn of this ...
The Phenomenon of 'Russian mafiya' in the Process of Russian Capitalism: Behavioral Analysis
In tandem with a growing influence and an elevated stature of Russia in the international community as a result of economic progress since the turn of this century, the operations of Russian organized crime rings have also been expanding around the globe. Such a phenomenon might be construed as quite natural when we consider the will of the Russian government to eradicate malpractices and corruptions committed by undesirable groups in Russia timed with the collapse of its closed national system, and the opening of its doors. Organized crime groups in Russia may think that time is ripe for them to expand their business at home and abroad for two reasons: globalization, open-door policies, regionalism including a growing economic bloc of the European Union, and informatization; and their extensive experience and know-how in conducting business and accumulation of funds over the last 20 years after the country's change of systems.
They have come into existence and grown due largely to the country's unique historical and cultural factors in the course of systematic transition. Their birth originates from the legacies of Tsarist Russia and the Soviet society, and from complex products created in the process of its transition to a market economy system. Just like ordinary Mafia groups abroad, poverty, greed of market participants, and the absence of a system or prohibition (including approval and permission) have caused the formation of Russian organized crime rings.
Expansion and growth of the Russian brand of market economy have led to more M&As among Russian businesses, and such business activities are now crossing national borders. M&As have become a common practice in every sector of the Russian economy: natural resources such as oil and gas, fisheries, forestry, agriculture, processing, financing and other services. In the meantime, Russian organized crime groups have been deeply involved in them. It is highly likely that activities of businessmen from Korea and Russia aiming at advancing into their respective new markets are exposed to such crime groups. Capitalizing on historical fetters of territorial division on the Korean Peninsula, the Russian crime groups are apparently attempting to maneuver high-ranking administrative officials in the Korean army via connections for trafficking non-registered weapons, drugs and humans. The chances are that Korea will, in no small measure, be affected by their operations in the days to come.
Since Russia borders the northern tip of the Korean Peninsula, such geographical proximity naturally brings about close relations with Korea in terms of national security, resources economy and external trade. For Korea, as it hopes to expand the level of cooperation with Russia, would obviously remain vulnerable to such undesirable elements. Expansion of bilateral exchanges would imply far more contacts with Russian crime organizations, so would be the adverse spillover effects they spawn.
Fortunately, Korea has unveiled only a few cases involving Russian crime rings as they have been less attracted so far by the Korean market than by the markets in Europe and the American continent. The Korean government's resolute will to crack down on foreign organized crimes, and different linguistic and social systems may explain it. The most important factor for their indifference, however, would be that the size of the market and a profit-making mechanism in Korea have not turned out to be attractive to them yet. It does not necessarily mean Korea is free from their clout. Conversely, it is assumed that our organized crime groups may be more active in Russia than they are in Korea in the future. In the long run, since both countries could be affected by such organized crime groups, preventive measures against these crimes are absolutely required.