The law of The Jungle

Essay by fr34k March 2008

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1.According to the article, what are the reasons behind such a low level of ethical consciousness in the Russian Business environment, especially when compared to Europe and other developed economies?Such a low level of ethical consciousness in Russian business comes from the Russian history and especially years during the socialism and right after it in 90´s. So it’s not so simple to compare the situation in Russia to developed western countries because they had totally different historical and political development. For example there is also big difference on this field between Western European countries and European countries which were part of communist block. There we can also see some inclination to non transparent business behavior.

Very important point is that Russia was under communism regime which didn’t accept private ownership. Many substances were taken from entrepreneurs at the beginning of socialistic age. Ideology was based on ideas which change all the structure of economy from capitalistic to directly driven.

Assets of different sort of people were confiscated and turned over to state ownership. Collectivisation expected that all the people will be equal, but actually it made more harm to competitiveness in whole society. This constitution started to be not about competitiveness but about politic agitation, fear, corruption and creating of new “more equal” sort of people than the others. These facts created the system where direct contacts to some of this powerful people were more important than to be hard worker but just a “sheep”. That was very radical change in Russian society which affected the behavior of Russian people a lot and right after the end of Soviet Union era when started another change of society it was even worse.

Question here is which transformation is more painful for economy? From capitalistic system to socialism or form socialism...