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MOSCOW TRADE ORGANIZATIONS

Explore the factors contributing to the increase of corruption and influence in Moscow's trade organizations between 1964-1982. Discover the causes, impact, and methods employed by trade managers, as well as the social groups and individuals involved.

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MOSCOW TRADE ORGANIZATIONS

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  1. MOSCOW TRADE ORGANIZATIONS IN THE BREZHNEV ERA 1964-1982 LUC DUHAMEL

  2. LUC DUHAMEL

  3. MOSCOW ADMIINISTRATION OF TRADE(TORG)(5000 stores – 300000 employees) LUC DUHAMEL

  4. MOSCOW ADMIINISTRATION OF TRADE(TORG)(5000 stores – 300000 employees) LUC DUHAMEL

  5. INCREASE OF INFLUENCE • FACTORS: • MORE FOOD, MORE STORES,ETC • STABILITY OF EMPLOYMENT, TRADE MANAGERS STAY AT THEIR POSITIONS, THEIR JOB IS SAFE LUC DUHAMEL

  6. CAUSES OF CORRUPTION • SOVIET VALUES, NO ACCUMULATION, NO PROFIT • SHORTAGE OF PRODUCTS IN STORES • MONOPOLY OF STATE-OWNED STORES, THE MANAGER HAS NO COMPETITOR • LOW QUALITY PRODUCTS • DIFFICULTY OF CONTROL OF THE FOOD PRODUCTS. LUC DUHAMEL

  7. TRADE`S INCREASE OF INFLUENCE BY CORRUPTION CORRUPTION:ACCUMULATION OF CAPITAL • A MEANS OF ILLEGAL REALLOCATION OF FOOD PRODUCTS • A MEANS OF ILLEGAL REALLOCATION FOR PERSONAL AND CORPORATE INTERESTS LUC DUHAMEL

  8. USE OF RESOURCES-OBJECTIVES • TO TRANSFORM ECONOMIC POWER INTO POLITICAL POWER • TO GET SUPPORT IN JUDICIARY ORGANS AND POLITICAL ORGANS LUC DUHAMEL

  9. USE OF RESOURCES-HOW • TO BRIBE=TO BUY: • TO BRIBE PARTY OFFICIALS • TO BRIBE MVD(POLICE) LEADERS • TO BRIBE SOME MINISTRY LEADERS • TO BRIBE MOSCOW CITY SOVIET LEADERS LUC DUHAMEL

  10. CONTROL OF TRADE NETWORK • MOSCOW SOVIET, MOSCOW PARTY COMMITTEE • STATE PRICE COMMITTEE • TRADE INSPECTION • POPULAR CONTROL COMMITTEE • LAW ENFORCMENT AGENCIES LUC DUHAMEL

  11. DEVELOPMENT OF PERSONAL RELATIONS IN TRADE ORGANIZATIONS • NEPOTISM • LIVE AT THE SAME PLACE • WORKPLACE, OCCUPY LONGTIMES THE SAME POSITIONS, HOLIDAYS, CELEBRATION, WEEK- ENDS AND VOLONTARY WORK TRAVEL AND VACATION LUC DUHAMEL

  12. PERSONAL RELATIONS AND SOCIAL CAPITAL • BUILD TRUST • ENFORCE COHESION • PROMOTE MUTUAL HELP • IN SUMMARY ALL THESE CREATE NETWORKS LUC DUHAMEL

  13. REGIME UNIVERSAL RULES SUPPLY ACCORDING TO THE PLAN NO PROFIT MANPOWER, PRICE DECIDED BY STATE LEADER-PERSONALIZATION DEPENDANT ON RELATIONS WITH THE MANAGER HAS THE MANAGER`S CONFIDENCE COMMITTMENT TO THE REGIME OR TO THE LEADER LUC DUHAMEL

  14. REGIME OF UNIVERSAL RULES • THE SUPREMACY OF IMPERSONAL RULES, HOLDERS OF THE AUTHORITY ARE SUBMITTED TO THE LAW • ASSUME FUNCTIONS SPECIFIED AND LIMITED BY THE LAW • APPOINTMENT AND PROMOTION IN THE BUREAUCRACY ARE DECIDED BY MERIT AND PERFORMANCE. LUC DUHAMEL

  15. SOCIAL GROUPS IN MTN(Moscow Trade Network) • MAJORITY: RUSSIANS AND VETERANS (Second World War) • REWARD FOR HEROIC PAST • GOOD IMAGE OF TRADE NETWORK LUC DUHAMEL

  16. SOCIAL GROUPS IN MTN • DOMINANT GROUP:CAUCASIA, MINORITIES IN SOUTH OF RUSSIA • MUTUAL HELP • INACCESSIBLE SOUTH, REFUGE • TRANSNATIONAL FORCE; AZERIS, ARMENIANS, CHECHENS • THE MOST INCLINED TO CORRUPTION, THE BEST ORGANIZED LUC DUHAMEL

  17. MAP OF CAUCASIA LUC DUHAMEL

  18. SOCIAL GROUPS IN MTN(Moscow Trade Network) • PEOPLE WITH CRIMINAL RECORDS • HIGH RISK OCCUPATIONS(like airport) • HIGHEST REVENUE • MOST GENEROUS BRIBE GIVERS • MAFIA CONNECTION LUC DUHAMEL

  19. HEROES AND STARS OF THE TRADE NETWORK • HEROES: • TWO EXAMPLES: TWO MANAGERS MODELS • KARAKANOV: ORGANIZE RECEPTIONS OF THE ELITE • AMBARTSYMYAN(NEW METHODS OF MANAGEMENT): ORGANIZE RECEPTIONS OF THE ELITE • CHARISMATIC LEADERS : CHARMING, SOCIABLE, COMMUNICATIVE LUC DUHAMEL

  20. POLITICS OF INCLUSION OF MTN • UNDER BREZHNEV, MTN IS A MODEL ORGANIZATION • ITS STAFF RECEIVES HONOURS AND REWARDS • SUPPORT FROM KEY OFFICIALS • MTN TAKES CARE OF THE NOMENKLATURA, ORGANIZE HIS RECEPTIONS, CELEBRATIONS LUC DUHAMEL

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  25. INNOVATIVE IN THE WAYS OF STEALING THOSE WHO HAVE NOT BEEN SUITED OR WHO HAVE STOLEN ONLY ONE TIME: ROGANOV HAS BEEN CAUGHT ONE TIME IN 44 YEARS THOSE WHO HAVE MADE CORRUPTION IN THE WORST CONDITIONS: SWW THOSE WHO HAVE BEEN VICTIMS OF RÉPRESSION THOSE WHO HAVE THE BEST-BUY WITH BRIBERY: SOKOLOV, AMBARTSUMYAN, ETC HEROES AND STARS OF THE ILLEGAL ECONOMY LUC DUHAMEL

  26. STORE`S MANAGER GIVE PRODUCTS TO WHOM? • SOLD LEGALLY TO CUSTOMERS AT OFFICIAL PRICE • ILLEGALLY TO THE SUPPLIERS FOR TO RECEIVE BETTER PRODUCTS. • ILLEGALLY TO THE PROTECTORS, TO POLICE OFFICERS, THE PARTY SECRETARIES, THE SOVIET PRESIDENT, TO MOSCOW PARTY OFFICIALS • TO BLACK-MARKETEERS (SPECULATORS) LUC DUHAMEL

  27. TRADE EXECUTIVES`S POSITIONS ARE PRECARIOUS • PRIVATIZATION WOULD CONSTITUTE A DECISIVE STEP IN THE CONSOLIDATION OF THEIR POSITIONS • SECURITY, IMMUNITY • TRANSMISSION OF THEIR ASSETS TO THEIR CHILDREN LUC DUHAMEL

  28. BUT RENT-SEEKING IN MTN • PROFIT LIMITED BY EXTORTION OF MONEY • INCREASING EXTORTION, A HIGH COST • LIMITS IN THE POSSIBILITY OF BUYING AND ACQUIRING, A LOT OF MONEY THAT CANNOT BE USED • NO GARANTEE AGAINST REPRESSION, CORRUPTION IS TOLERATED, BUT ILLEGAL AND ONE DAY... LUC DUHAMEL

  29. MTN A THREAT TO THE SOVIET SYSTEM 1 • CORRUPTION= SERIOUS VIOLATIONS OF THE NORMS OF THE SOVIET SYSTEM • SOME SOVIET LEADERS ARE WORRIED OF THE INCREASING INFLUENCE OF THE TRADE ORGANIZATIONS. • SOME POLITICAL LEADERS WANT IN 1981-1982 TO ATTACK THE TRADE ORGANIZATIONS, TO ATTACK CORRUPTION LUC DUHAMEL

  30. MTN A THREAT TO THE SOVIET SYSTEM 11 • THE BULK OF THE MEMBERS OF THE COMMUNIST PARTY ARE HONEST AND WANT AN END TO CORRUPTION • CORRUPTION THE IMAGE OF USSR ABROAD INTERNATIONAL RELATIONS • IT IS VIEWED BY WESTERN MEDIA AS A SERIOUS DISEASE OF THE SOVIET POLITICAL SYSTEM • IT IS A FACTOR THAT WEAKEN THE POSTION OF THE USSR IN HIS RELATIONS WITH OTHER COUNTRIES LUC DUHAMEL

  31. BUT TO ATTACK MTN IS TO TAKE A BIG RISK 1 • MOST OF THE TRADE STAFF IS INVOLVED IN CORRUPTION • ALMOST ALL LEADERS IN MTN ARE COMPROMISED • MTN MANAGERS SINCE 20 YEARS ARE THERE AND HAVE THE REPUTATION TO BE PERFORMANT • TO ATTACK THEM IS TO ATTACK THOSE WHO HAVE ACCEPTED THEIR BRIBES OR GIFTS LUC DUHAMEL

  32. TO ATTACK MTN EMPLOYEES IS TO TAKE A BIG RISK 11 • TO ATTACK TRADE EMPLOYEES WOULD BE TO ATTACK THOSE WHO HAVE PROMOTED THEM • TO ATTACK THEM WOULD BE TO ATTACK THOSE WHO WERE REWARDED BY THEM • TO ATTACK THEM WOULD BE TO ATTACK THEIR RELATIVES LUC DUHAMEL

  33. TO ATTACK MTN EMPLOYEES IS TO TAKE A BIG RISK 111 • TO ATTACK THEM WOULD BE TO ATTACK THEIR NATIONS • TO ATTACK THEM WOULD BE TO ATTACK THOSE WHO DISTRIBUTE THE CONSUMER GOODS IN THE SOCIETY LUC DUHAMEL

  34. MOSCOW TRADE ORGANIZATIONS IN THE ANDROPOV ERA 1982-1984 LUC DUHAMEL

  35. LUC DUHAMEL

  36. PROGRAM OF ANDROPOV • LAW AND ORDER IN THE SOCIETY, • MEAN RATIONAL LEGAL AUTHORITY • SUPREMACY OF THE LAW LUC DUHAMEL

  37. LAW AND ORDER • POLICE IN THE STREET DAY AND NIGHT WITH DOGS • MANY CONTROL OF THE POPULATION • THE LAW MORE SEVERE • KGB PURGE IN THE POLICE. MINISTRY OF INTERIOR VERY CORRUPTED LUC DUHAMEL

  38. 1982-1983 REPRESSION IN MOSCOW TRADE NETWORK • THOUSANDS MANAGERS ARRESTED • STILL MORE SUSPECTED AND INTERROGATED • MANY TOP TRADE EXECUTIVES BEHIND BARS • CONVINCING EVIDENCE AGAINST MANY OF THEM LUC DUHAMEL

  39. KGB PLAN: TO PUNISH THOSE WHO BREAK THE LAW • FIRST STEP: TO CHARGE ALL THOSE TRADE MANAGERS ACCUSED OF CORRUPTION • SECOND STEP: TO CHARGE ALL THEIR PROTECTORS IN THE PARTY AND THE GOUVERNMENT WHO ACCEPTED BRIBE FROM THEM LUC DUHAMEL

  40. THE SECOND STEP • VERY DIFFICULT TO SUCCEED IN THE SECOND STEP • WHY? BECAUSE IT MEAN TO ATTACK THE MOSCOW ELITE • IT IMPLIES TO ATTACK THE MOST INFLUENT PEOPLE IN THE SOCIETY • IT IMPLIES ALSO TO LAUNCH MASS REPRESSION LUC DUHAMEL

  41. THE REPRESSION AND ITS CONSEQUENCE • NOVEMBER 1982: ANDROPOV NEW LEADER OF THE PARTY, THE ANTI-CORRUPTION CAMPAIGN 2 REASONS:1) A TACTIC TO ELIMINATE HIS FIRST RIVAL, GRISHIN, THE MOSCOW PARTY LEADER 2) CAMPAIGN POPULAR AMONG PEOPLE WHO DONT LIKE MTN STAFF ACCUSED OF TO EMPTY THE STORES • BUT ANDROPOV DIED IN 1983 LUC DUHAMEL

  42. MOSCOW TRADE ORGANIZATIONS IN THE GORBATCHEV ERA 1985-1991 LUC DUHAMEL

  43. Ronald Reagan at his first meeting with former Soviet leader Mikhail Gorbachev / Photo: Dennis Paquin LUC DUHAMEL

  44. NEW LEADER GORBATCHEV • CONTINUE THE POLITICS OF ANDROPOV, • CONTINUE ANTICORRUPTION CAMPAIGN • CONSERVATIVE IN THE ECONOMY • AGAINST PRIVATE TRADE AND PRIVATE ENTERPRISE LUC DUHAMEL

  45. EVOLUTION OF GORBACHEV • FAILURES OF HIS ECONOMIC REFORMS IN 1985-1986-PERESTROIKA • POPULARITY FALL IN THE SOCIETY • INTELLIGENTSIA MORE AND MORE CRITICAL OF THE SITUATION • OPPOSITION GROWS IN THE SOCIETY AGAINST THE RISE OF KGB`S INFLUENCE LUC DUHAMEL

  46. GORBACHEV ADOPT POLITICAL REFORMS 1 • THE CAMPAIGN AGAINST CORRUPTION= MANY LOSERS IN THE SOCIETY: THE ELITE, THE BUREAUCRACY • WANT TO STOP IT • NEW FOREIGN POLICY: FAVORABLE TO THE WEST, CONCESSIONS TO THE WEST, • WANT SUPPORT FROM WESTERN COUNTRIES: MASSIVE ECONOMIC HELP LUC DUHAMEL

  47. GORBACHEV ADOPT POLITICAL REFORMS 11 • CONCESSIONS TO THE WEST: • AN ECONOMY NOT UNDER THE CONTROL BY THE STATE AND PARTY • CITIZENS FREE FROM STATE & PARTY • MINORITIES NOT UNDER THE CONTROL OF RUSSIA • REGIONS FREE FROM THE STATE AND THE PARTY LUC DUHAMEL

  48. LUC DUHAMEL

  49. GORBACHEV ADOPT POLITICAL REFORMS 111 • FREEDOM, OPEN THE BORDERS, NO CONTROL OF THE BORDER BY POLICE • EFFECTS: --a) PEOPLE CAN TRAVEL b) VERY FAVOURABLE TO CORRUPTION, BLACK MARKETERS CAN SELL THEIR PRODUCTS IN OTHER COUNTRIES AT A BETTER PRICE, TO SELL CULTURAL OBJECTS AND ARTS PAINTING LUC DUHAMEL

  50. MTN A DOMINANT FORCE CARDS OF THE TRADE EMPLOYEES • THE NUMBER: 300,000 EMPLOYEES IN MOSCOW, • THE SPEECH: LINKED PRIVATE ECONOMY AND DEMOCRACY, SOVIET TRADE WITH TOTALITARISM • ARRESTED TRADE LEADERS WITH VICTIMS OF TOTALITARISM • NETWORK: SUPPORTERS IN CERTAIN MEDIAS • THE MONEY: (ONE PART OF THE MONEY COME FROM OTHER COUNTRIES) FOR TO CHANGE THE LAW, PAY THE JOURNALISTS LUC DUHAMEL

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