Russia is #10!
In yet another stunning proof of Russia’s absolute failure as a civilized, modern country under Vladimir Putin, global risk manager Maplecroft has just published the results of a worldwide study of 196 countries and found that a truly shocking 186 of them were less risky to do business in than Russia. You read that right: Russia is the 10th most dangerous place to do business on this planet.
Russia is keeping company with virulent hell-holes like Somalia, Pakistan, Congo and Iraq. Maplecroft classifies Russia as an “extreme risk country” and states:
Russia’s increased risk profile reflects both the heightened activity of militant Islamist separatists in the Northern Caucasus and their ambition to strike targets elsewhere in the country. Russia has suffered a number of devastating terrorist attacks during 2010, including the March 2010 Moscow Metro bombing, which killed 40 people. Such attacks have raised Russia’s risk profile in the Terrorism Risk Index and Conflict and Political Violence Index. The country’s poor performance is compounded by its ‘extreme risk’ ratings for its business environment, corporate governance and the endemic nature of corruption, which is prevalent throughout all tiers of government.
Challenges for companies operating in Russia also stem from an ineffective legal and regulatory system, which includes a lack of judicial independence from the government. This was seen most recently in the politicised case against jailed Yukon oil tycoon Mikhail Khodorkovsky, which most commentators dubbed a show trial. Russia is rated ‘high risk’ in Maplecroft’s Rule of Law Index, and companies should monitor the increasing risk of poor contract enforcement and expropriation.
Ouch. that’s just about as bad as it gets for a country with pretensions to G-8 and UN Security Council membership. Instead of being a member, what’s clear is that Russia is part of the problem those entities are trying to solve. It’s a wolf in the sheep pen, a fox in the chicken coop. It’s a rogue nation, an outlaw, a barabaric throwback.
It’s a demon.
It’s not just Maplethcroft who thinks so, of course. Russia is the world’s most corrupt major economy according to Transparency International’s 2010 Corruption Perceptions Index. In TI’s most recent survey, Russia fell to the 154th spot among 178 countries, placing it alongside Tajikistan and Kenya.
The reason Russia languishes in such a pathetic, wretched backwater is perfectly clear: Denial. Russia as a nation is psychologically ill, unable to accept blame and unable to reform. When presented with impartial data of this kind, Russians merely attack the source, claiming it is the product of hatred and jealousy designed to bring Russia down. This is exactly the same tactic employed in Soviet times, the same tactic that prevented Russia from addressing its grievous faults. This in turn allowed those faults to fester and grow, eating away at the foundation of the country until it inevitably collapsed.
Seeing that collapse, how did Russians respond? The returned the selfsame entity, the KGB, which had been primarily responsible for the downfall to power, and allowed it to reconstruct not a new country but an exact replica of the state that had just failed so spectacularly.
Here we go again.