Suth africa for In the parallel economy, however, there was a strong need for private protection of property rights, that, moreover, had to be done while avoiding the detection from the authorities. The continued state of permanent feud between various private enforcement rings (called the Russian Mafia) involves costs which are unparalleled in normal market economies. The second source of inefficiency, related to the first, is the high degree of market segmentation. Since the parallel economy had to keep its activities hidden so as to avoid detection, it naturally led to a highly segmented market. The number of participants in each segment of the parallel economy is strictly limited, and the flows of goods, capital, labor and information are severely disrupted. These features are largely inherited today, especially in locally owned businesses. Third, capitalism relying on pressure groups and private enforcement is, by its nature, oriented toward extracting mostly short-term gain. Suth africa 2016.