EDITORIAL: Russia the Laughingstock of Nations


Russia the Laughingstock of Nations

Already ranked #118 last year out of 183 world nations for placing regulatory obstructions in the path of small business, Russia’s World Bank ranking in that area fell two places this year.  Russia, a member of the G-8, is in other words in the bottom third of all world countries in this area. Nicaragua — yes, Nicaragua — is more business friendly than Russia.  So, for that matter, is Uganda.

In Russia’s 27-nation region, Eastern Europe and Central Asia, Russia ranks an appalling #24.  Only Ukraine, Uzbekistan and Tajikistan are more hostile to small business in terms of legal framework.  Georgia, attacked by Russia with tanks and routinely vilified by Russian nationalists as a crazed dictatorship, is #1 in the group. That’s right, #1.

Russia’s lowest ranking in the ten categories that make up the score that determines the rank is for construction permits. Russia ranks dead last in its region in this area.  It ranks #22 in issuance of credit and approval of startup paperwork and #23 in customs hostility.

Russia was #160 among all nations in customs hostility last year and fell two places this year, an emphatic confirmation of Russia’s crazed xenophobia.  It is #182 in permitting construction, virtually the most difficult place on the planet to build.

These figures are simply appalling, and make no mistake:  in this study the World Bank is not judging results, it is only judging the regulatory framework that people face when they try to achieve results.  Because of its rampant corruption and incompetence, the results Russia achieves are even worse.  

And make no mistake: The consequences of this failure are the destruction of the nation and its people.  Russia’s rank for adult lifespan is virtually identical to its ranking for regulatory framework, namely the bottom third of all nations in the world. Russia is a failed state led by an incompetent, unqualified KGB overlord who is rapidly driving the nation towards collapse, just as his Soviet ancestors once did.

8 responses to “EDITORIAL: Russia the Laughingstock of Nations

  1. I can’t agree with the assessment of Ukraine being more ‘hostile’ for business than Russia.

    For 3 years I have operated a successful business in Ukraine without paying ONE bribe (western Ukraine mind you…not the ‘russiaified’ part).

    I would have no hesitation in recommending western Ukraine to anybody….just avoid anyone who speaks Russian. Simple.

    Dai Boze!

    • You are making a good point, which we’ve echoed in our editorial. Things are actually worse in Russia than they appear because of all the corruption. On the other hand, Ukraine’s much higher level of honesty and good faith means they are better able to overcome their poor regulatory environment.

  2. Actually, as bad as it sounds, from what I heard while working freelance, because of corruption it is much easier to overcome poor regulatory environment :)

    • Yeah, maybe it’s “easier” to get your hands on a building permit in Russia than anywhere else if by “easy” you merely mean paying a bribe. But if those bribes make building permits a thousand times costlier in Russia than any place else, there will still be fewer of them, and if the buildings built by corrupt criminals collapse or go up in flames, the cost will be higher still.

  3. Hearsay, while interesting as an anecdote cannot really be useful. From my own experience in the dark corridors of business in Russia, the “easy” attainment of permits, variances, certifications by the handy “direct” payments to the regulators is only the tip of the iceberg. The massive and more dangerous threat to the existence of business is the future promise of “compromat” (compromising evidence) that can hold a business hostage for years to come. Guess what – if you’ve cut corners on the upfront regulatory issues – i.e. made some “irregularities”, well then do you suppose someone in the future would not have compromat on you? So the much-vaunted (by the Kremlin and various business organs) entrepreneurs and innovators get it coming and going: bad policies and regulations, corrupt climate leaving them vulnerable to exploitation by the regulatory bodies (and “friends” of the bodies, of course).

  4. Well any person who knows at least a little bit about Russia… other than Kremlin propaganda nows this without any Indexes. Russian government is a bloody dictatorship and ANYBODY shaking hands with Herr Putin or Herr Dima Medved is no better than people who where shaking hands with Hitler or Mussolini. They have nearly totally EXTERMINATED Chechen population from 15 to 55 years, are killing more and more people every day inside Russia, North Caucasus and threaten their neighbors daily. AND I am not even reminding you about criminal and barbaric invasion to Georgian region which was very conveniently RENAMED to South Ossetia by the same Russians after 1921 Red army occupation of that country! SHAME ON ANYBODY WHO SHAKES HANDS WITH THOSE CRIMINALS…

    Their crimes include HUNDREDS OF THOUSANDS KILLED AND TORTURED! So if Hitler or Saddam had more energy influence and nukes… it would be acceptable what they where doing? It makes me absolutely sick to see how this so called world leaders visit Kremlin to kiss Pukins ass. DISGUSTING!

  5. Yes, lets not pretend the russian government is anything short of a dictatorship. If nobody deals with the bastards and bombs them into submission any time they try anything, they might learn from it..

    • Laszlo Tooth Jr.

      I agree, Curonian. Dropping a nuke or two on Russia would teach them a lesson. And it would also solve the overpopulation problem here in America.

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