Question

Why did protection rackets become ubiquitous after

Answer 1

Answer:

By the mid-1990s, according to some estimates, about 85% of commercial enterprises (almost all except those engaged in security affairs or working under the direct protection of law enforcement agencies) were under the control of gangster groups, while, according to sociological surveys of entrepreneurs, they were extorted by force in the number of only 30–45% encountered. The increasing competition between gangster and police 'protectorate' has led to the fact that after a violent surge in the first half of the 1990s, the criminal power protection of entrepreneurs returned to the original situation that existed before the legalization of entrepreneurship. By the end of the 1990s, under the gangster 'protectorate,' mainly those segments of the market remained where the share of illegal operations was high.

The rampant crime was associated with a sharp breakdown of established institutions of the Soviet era and the beginning of the formation of new ones. Newly-made entrepreneurs did not receive legal support. They were forced to collaborate with organized crime. Racketers were most often associated with corrupt law enforcement officials.

Explanation: