By Peter Rutland
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Extra info for Business and the State in Contemporary Russia
Of $3 billion earmarked for reconstruction of Chechnya's economy in the aftermath of the 1994-1996 war, the Chamber found documentation for only $2 billion. Less than $150 million actually reached Chechnya. Also in 1998 the Audit Chamber reported numerous financial irregularities that had occurred in the management of the state-owned Russian Television Network (RTR), largely between 1990 and 1996. The State Property Committee, according to the Chamber, failed to monitor the finances of RTR, leading to the misappropriation of property, precious metals, and funds.
According to the government commission on tax arrears chaired by Petr Karpov, in the 210 leading tax debtor companies only 27 percent of their receipts were in cash (Russkii telegraf, 31 January 1998). 10. Daniel S. Treisman, "Fighting inflation in a transitional regime: Russia's anomalous stabilization," World Politics, vol. 50, no. 2, 1998; Shleifer and Treisman, Without a Map, chs. 3-4. 11. These are end-of-year rates. Inflation dropped to 11 percent in 1997 before rising to 85 percent in 1998 (European Bank for Reconstruction and Development, Transition Report 1999 [London: EBRD, 1999]).
The government continues to hold large blocks of shares in key industries, often in natural resource extraction. 6 The culture of the Russian ruling elite traditionally centered on the tsar, who refereed and balanced the competition among elite and princely clans for his favor as well as for political, coercive, and economic advantages. " Yeltsin avoided identifying with any single faction and instead balanced off ministers, business tycoons, and security chiefs, who in the absence of selected political rules of political competition, were in perpetual competition with one another for his favor.
Business and the State in Contemporary Russia by Peter Rutland