Political “Investments” by Businesses in Russia, or Why Does Business Finance Election Campaigns?
DOI: 10.17976/jpps/2020.03.08
For citation:
Barsukova S.Yu., Denisova-Schmidt E.V. Political “Investments” by Businesses in Russia, or Why Does Business Finance Election Campaigns?. – Polis. Political Studies. 2020. No. 3. https://doi.org/10.17976/jpps/2020.03.08
The study was carried out as part of the project “Informal Practices of Organizing and Conducting Election Campaigns in Modern Russia” with the support of the Khamovniki Social Research Foundation.
Abstract
This paper discusses the influence business has had on election campaigns in Russia. Based on expert interviews with political strategists, representatives of legislative and executive authorities, and entrepreneurs, the study identifies several types of political ‘investments’ made by businesses in modern Russia. They might be either passive (forced) or active (voluntary). Passive ‘political investments’ are treated by businesses as a form of informal taxation or a political tribute. In this case, the business can act as an official sponsor, transferring funds to the election fund account, and finance the shadow part of the election budget. Businesses might pay for bogus services from firms that play an active role as the shadow ‘wallet’ of election campaigns. Moreover, businesses might provide transportation, volunteers, or premises for election events; this can be forced upon them lest their relations with the government be negatively affected. Active ‘political investments’ might take the form of supporting a particular person without any formal or obvious obligations and associations with interested businesses. Businesspeople themselves might even stand as a candidate for elected posts. The first strategy, however, might be risky, as once elected, a candidate might terminate any informal agreements later on; hence, many businesspeople go into politics themselves to establish security, useful contacts, and options for their business development. The study outcomes suggest that it is almost impossible to do business in Russia without participating in these types of ‘investments.’ Moreover, the electoral process is ambivalent for businesses: it might be a heavy burden and a window of opportunity at the same time.
Keywords
financing of election campaigns, political investments of business, shadow budget of elections, participation of entrepreneurs in elections.
ReferencesFrye T. 2002. Capture or Exchange? Business Lobbying in Russia. – Europe-Asia Studies. Vol. 54. No. 7. P.1017-1036. https://doi.org/10.1080/0966813022000017113
Frye T., Reuter O.J., Szakonyi D. 2014. Political Machines at Work: Voter Mobilization and Electoral Subversion in the Workplace. – World Politics. Vol. 66. No. 2. P. 195-228. https://doi.org/10.1017/S004388711400001X
Gel’man V. 1998. The Iceberg of Russian Political Finance. – Funding Democratization. Peter Burnell and Alan Ware (eds.). Manchester and New York: Manchester University Press. P.158-179.
Gel’man V. 2015. Political Opposition in Russia: A Troubled Transformation. – Europe-Asia Studies. Vol. 67. No. 2. P. 177-191. https://doi.org/10.1080/09668136.2014.1001577
Orttung R. 2004. Business and Politics in the Russian Regions. – Problems of Post-Communism. Vol. 51. No. 2. P. 48-60. https://doi.org/10.1080/10758216.2004.11052162
Reuter O.J., Robertson G.B. 2012. Subnational Appointments in Authoritarian Regimes: Evidence from Russian Gubernatorial Appointments. – The Journal of Politics. Vol. 74. No. 4. P. 1023-1037. https://doi.org/10.1017/S0022381612000631
Sakaeva M. 2019. Moonlighting Politicians in Russia: Defense Capacities of Businesspeople in Regional and Local Legislatures. – Demokratizatsiya. The Journal of Post-Soviet Democratization. Vol. 27. No. 1. P. 75-99.
Scott G., Sonin K., Zhuravskaya E. 2010. Businessman Candidates. – American Journal of Political Science. Vol. 54. No. 3. P. 718-36. https://doi.org/10.1111/j.1540-5907.2010.00456.x
Szakonyi D. 2018. Businesspeople in Elected Office: Identifying Private Benefits from Firm-Level Returns. – American Political Science Review. Vol. 112. No. 2. P. 322-338. https://doi.org/10.1017/S0003055417000600
Yakovlev A. 2006. The Evolution of Business-State Interaction in Russia: From State Capture to Business Capture. – Europe-Asia Studies. Vol. 58. No. 7. P. 1033-1056. https://doi.org/10.1080/09668130600926256
Analiticheskii doklad. Finansirovanie izbiratel’nykh kampanii po vyboram glav sub”ektov Rossiiskoi Federatsii [Analytical Report of the “Golos” Movement for Voter Rights. Financing Election Campaigns for the Election of Heads of Russian Federation Regions]. 2015. Moscow: Golos. URL: http://st.golosinfo.org/2015/08/d033924e.pdf (accessed 11.03.2020). (In Russ.)
Barsukova S.Yu., Zvyagintzev V.I. 2006. Mechanism of Political Investment, or How and What for Russian Business Takes Part in Elections and Covers the Expenses of Party Life. – Polis. Political Studies. No. 2. P. 110-121. (In Russ.) https://doi.org/10.17976/jpps/2006.02.09
Bychkova О., Gel’man V. 2010. Economic Actors and Local Regimes in Major Russian Cities. – Neprikosnovennyi zapas. No. 2. P. 73-82. (In Russ.)
Den’gi na vyborakh: Problemy obespecheniya prozrachnosti finansirovaniya politicheskikh partii i izbiratel’nykh kampanii v Rossiiskoi Federatsii [Election Money: Problems of Ensuring the Transparency of Financing of Political Parties and Election Campaigns in the Russian Federation. Transparency International Report]. 2017. Moscow: Transparency International Russia. (In Russ.) URL: https://transparency.org.ru/special/dengi-na-viborah/money-to-elect.pdf (accessed 11.03.2020).
Levin S.N., Kagan E.S., Kislitsyn D.V. 2014. Internalized Political Resource of Big Business in Kuzbass. – ECO Journal. No. 1. P. 85-94. (In Russ.)
Levin S.N., Kurbatova M.V. 2011. Network Interrelations of the Russian Business: Business Corruption and Organic Institute of the Real Model of the Institutional Organization of the Russian Economy. – Journal of Institutional Studies. Vol. 3. No. 2. P. 39-58. (In Russ.)
Lyubarev A.E., Kynev A.V., Maksimov A.N. 2017. Kak vybirala Rossiya – 2016. Monitoring izbiratel’nogo protsessa [How Russia chose — 2016. Monitoring of the Electoral Process]. Moscow: Mysl’. (In Russ.)
Oleynik A.A. 2008. Market as a Mechanism of Reproduction of Power. – Pro et Contra. No. 2-3. P. 88-107. (In Russ.)
Paneyakh E. 2008. Pravila igry dlya russkogo predprinimatelya [Rules of the Game for the Russian Entrepreneur]. Мoscow: Kolibri. (In Russ.)
Sakaeva M. 2016. Businessmen in the Legislative Assemblies of the Regions – Status as Protection and Preference. – Sociological Studies. No. 4. P. 142-146. (In Russ.)
Tev D. 2008. Owners and Developers of Real Estate in Kaliningrad: Connections with the Authorities and Political Benefits. – Political Science (RU). No. 3. P. 175-193. (In Russ.)
Volkov V. 2005. Silovoe predprinimatel’stvo: ekonomiko-sotsiologicheskii analiz [Power Entrepreneurship: Economic and Sociological Analysis]. Moscow: Higher School of Economics. (In Russ.)
Zubarevich N.V. 2002. I Came, I Saw, I Conquered? Big Business and Regional Power. – Pro et Contra. Vol. 7. No. 1. P. 107-120. (In Russ.)
See also:
Zorin M.A.,
Metaphors of Elections (With the Election Campaigns of the “Yabloko” Party and of the Right Forces Union, as Example). – Polis. Political Studies. 2004. No5 Murphine R.,
Technology of Election Campaigns in the USA. – Polis. Political Studies. 1991. No3 Barsukova S.Yu., Zvyagintzev V.I.,
Mechanism of Political Investment, or How and What For Russian Business Takes Part in Elections and Covers the Expenses of Party Life. – Polis. Political Studies. 2006. No2 Golosov G.V.,
Dimensions of Russian Regional Electoral Rules. – Polis. Political Studies. 2001. No4 Pshizova S.N.,
Financing Political Market: Theoretical Aspects of Practical Problems (1). – Polis. Political Studies. 2002. No1