Abstract
Historically, Russia has been unable to establish Rechtsstaat or the state based on "rule of Law". Indeed, Russia's legal culture is characterized by a profound distrust of the law, or "legal nihilism". Furthermore, it should be emphasized that, in addition to legal nihilism, Russia's legal culture is also characterized by the concept of ethical dualism. Ethical dualism means that the moral norms Russians apply in relationships with members of their own community differ from those in relationships with people thought to be associated with a different community. Given such a distinctive nature, Russia's legal culture could not be conceived of as being suited for a market economy. It might be inevitable that the political system tends to be more authoritarian in order to lower transaction costs and facilitate economic development.
