Russia Plagued by Corruption Perception


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When it comes to corruption, Russia takes the cake. And it’s not a cake its political leaders enjoy, as the country tries to position itself as a well-respect and modern emerging market leader

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Russia Plagued by Corruption Perception

  1. 1. Russia Plagued by Corruption Perception - Forbes Page 1 of 4Business Investing Tech Entrepreneurs Op/Ed Leadership Lifestyle Lists Help | Login | SignUp Search news, business leaders, and stock quotes Whos Getting Hired Degrees Employers Want How To Find A Good AdVoice: Invasion Of The Now? Most Mentor Invisible Wallet Free Issue > Kenneth Rapoza, Contributor Covering Brazil, Russia, India & China. + FollowI N V E S TI N G | 6/17/2011 @ 5:42PM | 1,608 viewsRussia Plagued by CorruptionPerception+ Comment now When it comes to corruption, Russia takes the cake. And it’s not a cake its political leaders enjoy, as the country tries to position itself as a well-respect and modern emerging market leader. In fact, plagues of corruption not only have big international fund managers like Foxhall Capital Management out of Russia, it also keeps foreign For a country as important as Russia, its high marks companies at bay, and hurts the for corruption scar the new image Russian leaders are trying to put forth to the world. local economy. According to a 2010 year-endcorruption perceptions report by Transparency International, on a scale from1 to 10, with 10 being ultra-clean, Russia scored a 2.1 on the index, down froma 2.2 in 2009, making it the most corrupt large nation on earth, and ascorrupt as the smaller nations of Southeast Asia and Libya. Moreover,Russian citizens are the least likely out of their global peers to believe they Most Popularhave any shot at making in a difference in the fight against corruption. Only NEWS People Places Companies45% believe they can make a difference as ordinary citizens, compared to 62%in Asia Pacific, 73% in Latin America and 81% in North Africa and the Middle Cain Says Perry Camp Behind Sex Harassment Leak +70,806 viewsEast, two regions of the world where ordinary citizens were able to overthrowcorrupt, money-hoarding dictators. On Judge William Adams Beating His Daughter and Internet RevengeWhy is Russia at the bottom? +48,469 views“Part of it is a reaction to the old vestiges of the Soviet system, and the official Why Siri Is a Google Killer +37,760 viewsundemocratic view of the world,” says Shan Nair, CEO of Nair & Co, a global 11/2/2011
  2. 2. Russia Plagued by Corruption Perception - Forbes Page 2 of 4risk management solutions firm. Nair, an Oxford nuclear physicist who was As Report Reveals Toxic Ingredients inonce part of the UK team that helped the European Commission work out its Baby Shampoo, Johnson & Johnsonresponse to the Russian nuclear meltdown in Chernobyl in 1986, says a lot of Goes Public with Plans to Clean Up Products +37,335 viewsthe corruption comes from an anti-West animosity following the break-up ofthe Soviet Union in 1991. One client was having tax problems in Russia, so Why Most Women Will Never Becomethey sent a female Lithuanian employee from Britain to handle the matter. CEO +34,641 viewsShe was stopped because of her British passport, and whisked off to Rome to + show moremeet with Russian tax inspectors in an office Nair said was loaded with pin-up posters of half naked women. “They talked to this woman for nearly anhour, not about taxes, or what she was doing heading to Russia, but about Kenneth Rapoza Contributorhow Britain is no longer an empire, though acts like it still is,” he says. + FollowAlcoholism, widely accepted atheism, and a gangster’s take on morality hashindered Russia ever since Mikhail Gorbachev officially closed the office of I covered Brazil pre-Lula and post-Lula and spent the last five years covering all aspects of the countrythe president of the USSR in December 1991. Since then, Russians have been for Dow Jones, Wall Street Journal and Barrons.increasingly ravaged by disease and death. It is the only BRIC country facing a Meanwhile, for an undetermined amount of time, and with a little help from my friends, I will beshrinking population. Alcohol related health problems have life expectancy parachuting into Russia, India and China. (I figurefor men at just 60 years old, about the same as in Myanmar and Haiti, Public if Anderson Cooper can parachute, I can parachute.)Radio International reported last year. The author is a Forbes contributor. The opinions expressed are those of the writer.In Russia, elected officials, civil servants and police are viewed as the mostcorrupt, according to Transparency International. KEN NE TH RAPO Z A’S POPUL AR POST S Obama Heads to Rio Sunday; Maximum SecurityOne of the ways Russia is trying to clean up its perception as a public-private Awaits 313,529 viewscartel of oligarchs and the public servants they rent out in Moscow is Rubber Bullets Fly at Anti-Obama Protest In Rioremoving all government officials from chairman of the board positions at the 264,396 viewsstate owned enterprises (SOE) like natural gas giant Gazprom. Russia’s Earthquake Closes Tokyo Disneyland for 10 Days- Kyodo 40,978 viewspresident Dmitry Medvedev said in March that politicians had to leave theirposts at the SOEs by June. Some call it window-dressing. Others say it’s a The Brains Behind Occupy Wall Street 32,880 viewsstart. And some Russian insiders worry that if Medvedev is seen as pushing Where To Park A Million Dollars (Or $1,000) 28,814 viewstoo hard against the status quo, he will not be re-elected in 2012. Medvedevhas not yet stated his intention to run again. MOR E F RO M KENN ET H R APOZ A“Compare corruption in India, with its 2G telecom scandal, to Russia. Indiacorruption leads to prosecution,” says Nair. “The Supreme and High Courtsare incorruptible; you never hear of judges being bribed. They deal withproblems as they come. In China, there is official awareness of corruption and Kenneth’s News Streamaccounting tricks, which they use to their corporate advantage. It’s a different Show all activity (20)ball game in India,” he says. Comment 2 hours agoOne of the biggest problems with corruption, whether in Russia or elsewhere, Hey Doug. Thanks for reading and that it makes market competition in next to impossible. You gotta read those articles in [...] on Getting Over Our Over-Levered Selves“Political corruption influences competition,” says Sam Fouad, a globalmanaging partner at Ernst & Young in New York. “Right now we are seeing a Comment 3 hours agolot of government and private partnerships, which is ripe for corruption and I was being a little tongue in cheek, Bob. But for those guys [...]can definitely skew competition when you have a government largess at your on The Sell Side Of Investment Banking Slowlyservice. US companies are focused on this, both in the US and abroad, Being Dismantledbecause how do you be successful in those markets and stay true to US rules Comment 11 hours agoof governance and corporate transparency? It’s a very delicate balance.” My guess is that the market comes back, maybe with a force. It [...]Russia may be the black sheep in the big emerging markets, and that’s had on The Sell Side Of Investment Banking Slowly Being Dismantledmost of its stocks and the Market Vectors Russia (RSX) exchange traded fundtrading at a risk premium to the MSCI EAFE index. It’s a volatile investment, Comment 11 hours agoand a volatile country. Russia wants to change that. It’s hosting the emerging Yeah, its bad. What I want to know is who ismarket and Russia-centric International Economic Forum in St. Petersburg going to [...]this week, now in its 15th year. Corruption was not on the table. on The Sell Side Of Investment Banking Slowly Being Dismantled 11/2/2011
  3. 3. Russia Plagued by Corruption Perception - Forbes Page 3 of 4Russia is not alone when it comes to corruption. According to Transparency • • • • •International, when it comes to bribery, India’s got Russia beat hands down.Percentage of Users Who Paid a Bribe to One of Nine ServiceProviders in 2010India is No. 1. The US is tied with Brazil.India: 54%Russia: 26%China: 10%Brazil: 5%USA: 5%Institutions Perceived as Corrupt by CountryIn Russia, elected officials and the police are corrupt. In the US, theDemocrats and Republicans are considered corrupt.Brazil: Political parties, parliament, congressRussia: Public officials, civil servants, policeIndia: Political partiesChina: Business, private industryUS: Political partiesCorrupt-o-meter10: squeeky clean. 0: filthy.Russia: 2.1India: 3.3China: 3.5Brazil: 3.7USA: 7.1Denmark, New Zealand and Singapore: 9.3Source: Transparency International+ Comment now 24 11 11 Report CorrectionsMore on Forbes Right Now Photo Galleries andF EATUR ES T OD AY’S MO ST PO PUL AR More Cain Says Perry Camp Behind Sex Harassment Leak +73,625 views On Judge William Adams Beating His Daughter and Internet Revenge +49,104 views Gallery: The Best FamilyWorlds Most CompaniesInnovative Clean-Energy Why Siri Is a Google Killer +38,007 viewsCompanies 11/2/2011
  4. 4. Russia Plagued by Corruption Perception - Forbes Page 4 of 4 AC TI V E F OR BES TO PI C S Advertising Information | Self- Serve Advertising | Reprints/Permissions | Terms, Personal Taxes Pharma & ForbesWoman The Best Cities For Conditions and Notices | Privacy Statement | Contact Us Finance Healthcare Working Mothers | Sitemap | HelpIncome DriversFor An Ugly 2011 LLC™ All Rights ReservedEconomyPost Your Comment MAGAZINES How To Invest Like A BillionaireLog in to post a comment Dont have an account? Join Forbes Now.Username: Free Trial IssuePassword: Subscriber Services Buy Back IssuesLost your password? The People That Are Changing Business Remember me Home Business Investing Tech Log in Entrepreneurs Op/Ed Leadership Lifestyle Lists Forbes Conferences Newsletters Americas Favorite Brands 11/2/2011