POL354Y5 Lecture Notes - Retained Earnings, Transfer Pricing, Party System
Document Summary
Nomenklatura" used party / state positions to acquire state financial, industrial wealth during privatization process; New oligarchs" - used skills, connections to gain access to state property. Links: with / between state officials responsible for privatization and oligarchs, eltsin control presidency; part of eltsin family ; Low purchase price of resource based companies; Transfer pricing from producing companies to holding companies; Massive dilution of capital (shares / equity); Dominate russ public life through massive fraud & misappropriation, esp in oil sector. Acquired economic assets from state through loans-for-shares scheme, rigged auctions, untendered purchases for very low prices, often funded with govt money entrusted to their banks. Oligarchs enjoy enormous pol power, derived from their money, media control, & direct. Control appointments to key positions in pres & govt ( eltsin family ); Appointed to high pol positions (potanin, berezovsky, chernomyrdin); Financed eltsin"s 1996 pres elec campaign in exchange for sell off of state assets;
