In this original, bottom-up account of the evolution of contemporary Russia, Alena Ledeneva seeks to reveal how informal power operates. Concentrating on Vladimir Putin's system of governance - referred to as sistema - she identifies four key types of networks: his inner circle, useful friends, core contacts and more diffuse ties and connections. These networks serve sistema but also serve themselves. Reliance on networks enables leaders to mobilise and to control, yet they also lock politicians, bureaucrats and businessmen into informal deals, mediated interests and personalised loyalty. This is the 'modernisation trap of informality': one cannot use the potential of informal networks without triggering their negative long-term consequences for institutional development. Ledeneva's perspective on informal power is based on in-depth interviews with sistema insiders and enhanced by evidence of its workings brought to light in court cases, enabling her to draw broad conclusions about the prospects for Russia's political institutions.
During the Soviet era, blat—the use of personal networks for obtaining goods and services in short supply and for circumventing formal procedures—was necessary to compensate for the inefficiencies of socialism. The collapse of the Soviet Union produced a new generation of informal practices. In How Russia Really Works, Alena V. Ledeneva explores practices in politics, business, media, and the legal sphere in Russia in the 1990s—from the hiring of firms to create negative publicity about one's competitors, to inventing novel schemes of tax evasion and engaging in "alternative" techniques of contract and law enforcement. Ledeneva discovers ingenuity, wit, and vigor in these activities and argues that they simultaneously support and subvert formal institutions. They enable corporations, the media, politicians, and businessmen to operate in the post-Soviet labyrinth of legal and practical constraints but consistently undermine the spirit, if not the letter, of the law. The "know-how" Ledeneva describes in this book continues to operate today and is crucial to understanding contemporary Russia.
The word blat refers to the system of informal contacts and personal networks which was used to obtain goods and services under the rationing which characterised Soviet Russia. Alena Ledeneva's book is the first to analyse blat in all its historical, socio-economic and cultural aspects, and to explore its implications for post-Soviet society. In a socialist distribution system which resulted in constant shortages, blat developed into an 'economy of favours' which shadowed an overcontrolling centre and represented the reaction of ordinary people to the social constraints they faced. In social and economic terms, blat exchanges became vital to the population, and to the functioning of the Soviet system. The book shows that the nature of the economic and political changes in contemporary Russia cannot be properly understood without attention to the powerful legacy of the blat economy.
During the Soviet era, blat—the use of personal networks for obtaining goods and services in short supply and for circumventing formal procedures—was necessary to compensate for the inefficiencies of socialism. The collapse of the Soviet Union produced a new generation of informal practices. In How Russia Really Works, Alena V. Ledeneva explores practices in politics, business, media, and the legal sphere in Russia in the 1990s—from the hiring of firms to create negative publicity about one's competitors, to inventing novel schemes of tax evasion and engaging in "alternative" techniques of contract and law enforcement. Ledeneva discovers ingenuity, wit, and vigor in these activities and argues that they simultaneously support and subvert formal institutions. They enable corporations, the media, politicians, and businessmen to operate in the post-Soviet labyrinth of legal and practical constraints but consistently undermine the spirit, if not the letter, of the law. The "know-how" Ledeneva describes in this book continues to operate today and is crucial to understanding contemporary Russia.
The word blat refers to the system of informal contacts and personal networks which was used to obtain goods and services under the rationing which characterised Soviet Russia. Alena Ledeneva's book is the first to analyse blat in all its historical, socio-economic and cultural aspects, and to explore its implications for post-Soviet society. In a socialist distribution system which resulted in constant shortages, blat developed into an 'economy of favours' which shadowed an overcontrolling centre and represented the reaction of ordinary people to the social constraints they faced. In social and economic terms, blat exchanges became vital to the population, and to the functioning of the Soviet system. The book shows that the nature of the economic and political changes in contemporary Russia cannot be properly understood without attention to the powerful legacy of the blat economy.
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