Russian Interior Ministry
"As a result, property rights were unclear, and disputes over property rights often can not be resolved in the courts. Insiders and organized crime take advantage of this situation to take control of the main assets, often without having to pay more than a small fraction of their real value. The privatization was carried out around the same time that the development of small private enterprises. Again, due to the absence of an effective legal and regulatory system governing the activity of private companies, these companies are ripe for extortion by street gangs. To protect themselves, small businesses often had to turn to other gang members to provide "krysha" (roof) of protection. Consequently, gangsters gained control of many small businesses and accumulated capital, which is often used to acquire large companies during the process privatization. They often use these companies to make more money and acquire public status, which is then used for political office. Unfortunately, this scenario is played in many countries around the world, and use of this historical example should be incorporated into post-conflict reconstruction and democratization of planning.
Soon the establishment and application of the rule of law over government disorders are essential to prevent a haven for criminals and terrorists. In terms of individual countries, the problem of organized crime in Russia is perhaps the most pressing. According to Steve Schrage, Deputy Assistant Secretary for International Narcotics Affairs and Law Enforcement Affairs (INL) of the Department of State, the Russian Interior Ministry estimates that more than half of the Russian economy, including a large part of their energy and metallurgical sectors, is controlled by organized crime.
