Ambiguity of Social Networks in Post-Communist Contexts

The paper discusses three hypotheses. First, it introduces four ideal types of networks which are combined in the category of networks as used by social scientists. Four types result from the intersection of two implicit choices made about networks – networks are assumed to be either personal or impersonal, and are viewed either internally or externally. Thus, networks are understood in terms of sociability, access to resources, enabling structure, or social capital. Second, I argue that networks function in a fundamentally ambiguous way. They operate in their capacity of a safety net or survival kit, provide a ‘beating the system’ capacity or compensate for the system’s defects. At the same time networks provide constraints such as high costs of informal contract, limits on individual action, lock-in effects and the handicaps of social capital. Third, I illustrate differences between networks serving the economy of favors in Russia and networks serving the purposes of ‘network society.

Leadership and Corruption in Russia, 2000-2004

The paper defines the key features of corruption and perception of corruption in Russia under Putin. It provides a comparison of trends of corruption perception index in the CIS region and CEE countries and focuses on specifics of President Putin’s policies in application. The analysis questions the assumptions about informal practices and formal institutions and offers interpretations of the dependence of Putin’s regime on the ‘unwritten tules’

Informal Practices in Changing Societies: Comparing Chinese Guanxi and Russian Blat

The paper defines the key features of Chinese guanxi and Russian blat networks, explores similarities and differences in the use of these networks both in communist and post-communist economies, and discovers their ambiguous relationship with the formal institutions. Having compared guanxixue and blat in detail, one should conclude that people tend to develop similar responses (as well idioms) in order to survive in state centralised economies characterized by shortages, state distribution system and ideological predicaments. Guanxi and blat networks in pre-reform China and Russia played a similarly ambiguous role in these economies: on the one hand, they compensated for the defects of the formal rules thus enabling the declared principles of the economy to exist; on the other hand, they subverted them. There are also common trends in the transformation of informal practices in post-reform China and Russia. Before the reforms, both guanxixue and blat were often beneficial to ordinary people in allowing them to satisfy their personal needs and in organising their own lives, whereas now their shift into corruption benefits the official-business classes and hurts the bulk of society. Trust and social networks are vital components of both economies and will continue to exist (as elsewhere) but their implications for the transformation may differ. The post-Soviet reforms have changed the Soviet-type blat practices so much that blat has almost ceased to be a relevant term for the use of personal networks both in the state and in the new sectors of the economy. Being more culturally and historically grounded, the term guanxi has sustained and found its new use in contemporary China. There is much more discussion of guanxi and guanxi capitalism in China than ever has been on blat in Russia. The partiality of reforms in China and the communist rulership does not prevent foreign investment and economic success, and corruption is estimated as not as damaging in China as it is in Russia

The economic meaning of ‘intangible capital’ (according to World Bank research)

In the following article, it will be proven on the basis of correlation analysis that ‘intangible capital,’ interpreted by the World Bank as both human capital and the quality of the institutions supporting economic activity, in fact represents the actual capacities of a given country to export non-commodity goods. The significant amount of ‘intangible capital’ found in highly developed countries lies in sharp contrast to the relatively smaller amount found in Russia; explained by its colonial-type trade system and the multiplier effect of added value.intangible capital; national wealth; added value; unequal exchange; export of raw materials

Corporate Corruption in Russian Regions

To understand corporate corruption in Russia and to develop both effective anti-corruption policies at the macro level and anti-corruption strategies at the firm level one has to move beyond the predominant paradigm and to disaggregate its measurement. This article outlines the results of a pilot survey of CEOs of leading companies operating in the Russian regions with regard to their use of informal practices

From Russia with Blat: Can Informal Networks Help Modernize Russia?

Since the collapse of the Soviet Union, Moscow has become a global city with a vibrant urban and cultural life-one of the most expensive capitals in the world with famous clubs and restaurants, as well as one of the most popular destinations for city workers and diplomats. Has corruption been instrumental in Moscow's development? The answer is complicated and in many ways a matter of definitions. It depends on whether one considers informal practices-inherited from Soviet times as well as new ones-as corrupt and how one conceptualizes corruption. I will illustrate some of these complications for the case of the Soviet practice of blat, explain its "monetization" and its evolving relationship with corruption in the post-Soviet transition, and analyze the role of informal networks in present-day Russia

Open Secrets and Knowing Smiles

Given the importance of informal ways of getting things done in postsocialist societies, research into the field of unwritten rules and informal practices has been slow to develop. In studying such rules and practices, the researcher often encounters skepticism or hostility stemming from the ways in which people relate to tacit agreements, or else she or he is greeted by an ambivalent smile of complicity—a knowing smile. This article draws a connection between knowing smiles and open secrets and argues that these notions illuminate a great deal about how the “grey areas” of social life function. It also suggests that such seemingly trivial aspects of everyday life can reveal profound features of social institutions and point in the direction of innovative research

Russia's Practical Norms and Informal Governance: The Origins of Endemic Corruption

Corruption in Russia is of endemic nature. This article traces its roots to traditional practices that formed a foundation of the present-day system of governance, often referred to as ‘sistema’. It demonstrates how the logic of ‘feeding,’ ‘joint responsibility’ and ‘Potemkin villages’ is reproduced in the reliance of Putin’s network-based governance system on such instruments as undeclared incentives, informal affiliations, hidden agendas and warning signals. Putin’s sistema gives dynamism to government’s economic and political projects by engaging personalized influence, but at the same time its informal and non-transparent nature creates a fertile ground for corruption and makes its mitigation difficult. I argue that corruption in Russia could not be effectively managed unless its leaders understand the system of governance they operate in and articulate its consequences, of which endemic corruption is one of the most devastating for the country