Читать реферат по английскому: "Russian Mafia Essay Research Paper" Страница 2

(Назад) (Cкачать работу)

The protection money not only has an effect on domestic businesses, it also reaches companies with foreign investments. Foreign companies that are looking to build inside Russia are not willing to pay the required protection fee, because they are not accustomed to it. Many foreign ventures inside Russia have failed because the mafia has put them out of business when they refuse to pay the protection fees. The businesses have to weigh both sides of the argument, wether to make the payments and break even with the profits, or keep all the profits and risk losing all of it. Although investors have everything to gain, they also have everything to lose. The main worry for investing companies is the lack of legal structure to protect their investments. If a company decides not to invest, then the economy will lose a likely valuable business, and therefore end up suffering as a result.

Considering all the factors, it is no surprise that the Russian economy is in such a mess. The cause of the current depression in Russia is certainly caused by the presence of organized criminal groups. Through their use of laundering funds to avoid paying taxes, demanding protection money from small start-up privately owned businesses, and using bribery and coercion to obtain favorable government contracts and tax exemptions they are crippling the entire economy, and preventing its growth.

Похожие работы