An article in the Moscow Times on 6 May reports on recent academic research showing that inefficient bureaucracy and bribes are doubling the markup on retail goods in Russia. Food could cost 15 percent less, communications could go down by 10 percent, and real estate could be 25 to 30 percent cheaper. The problem is bureaucracy and legalized corruption, government experts say. A group analyzing the competitive environment of Russia's economy, as part of an update to the overall national development strategy, has identified defective institutions that impede business activity and economic growth and are part of the cause of higher prices for goods and services. An ineffective and corrupt bureaucracy has the greatest effect on the real estate sector, the construction of office buildings and stores, the establishment of farms and rental of land, according to a report issued by the European University in St. Petersburg.
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