Russia’s Paradox: Strong Abroad, Weak at Home

For centuries, Russia has been plagued by a paradox - a strong state that is outwardly powerful but internally weak. This paradox continues to persist under Vladimir Putin’s tenure, with his aggressive foreign policy earning praise domestically and internationally, while his failure to tackle corruption at home hindering the daily lives of Russian citizens.

The State of Corruption

Despite acknowledging the strain of repeat inspections on the Russian economy, Putin’s administration has failed to implement meaningful reforms. The Kremlin’s primary response to the economic crisis is to advise Russians to adapt to their new reality. A credible fight against corruption is crucial for structural reform and could jumpstart the economy, but even basic tools or a credible resolve to combat it are lacking.

The Burden on Businesses

The Russian business community suffers from over 100 regulatory regimes administered by 44 separate departments, resulting in more than 2 million government inspections annually. Many of these reviews are scheduled, but almost half are unplanned, placing a significant financial burden on businesses and providing corrupt officials with opportunities for extortion and abuse.

Putin’s Inaction

Putin has publicly acknowledged the issue of repeat inspections, calling them an “intrusive supervision” that creates problems for law-abiding citizens. However, his administration has yet to implement meaningful reforms.

A Call for Reform

Alexei Kudrin, former finance minister and now chairman of the Center for Strategic Research, has been a leading voice for reform. His appointment may encourage Western investors, but it also implies that major reforms will not take place until after Putin’s reelection in 2018.

Excuses and Justifications

The Russian government excuses its inaction on corruption by citing its global ambitions and notions of sovereignty. At a recent UN conference in St. Petersburg, Presidential Administration chief Sergei Ivanov stated that imposing anticorruption standards that individual countries are not prepared to accept is inappropriate and even harmful. Russia has yet to adopt Article 20 of the UN Convention against Corruption, which criminalizes illicit enrichment by government officials.

The Consequences

A Russia that projects power abroad may impress some as a powerful state, but it is in danger of losing its footing if it fails to address corruption at home. The foundation of state power and influence in the 21st century is a growing economy that empowers innovation and attracts foreign investment. Until the Russian government takes meaningful action against corruption, it will struggle to achieve long-term success.

Conclusion

Russia’s paradox of being strong abroad but weak at home must be addressed for the country to achieve true success. A credible fight against corruption is crucial for structural reform and could jumpstart the economy. The Russian government must take meaningful action to combat corruption and create a more stable and prosperous future for its citizens.

About the Authors

William Pomeranz is deputy director of the Kennan Institute and has written extensively on Russian constitutional and commercial law, as well as Russian legal history.

Matthew Rojansky is director of the Kennan Institute and an expert on US relations with former Soviet states, including Russia, Ukraine, Belarus, and Moldova.