By Dr. Rachel Ehrenfeld and Alyssa A. Lappen
Human Events | Posted: 06/27/2007

The Transparency International 2007 global report released on May 24 documents widespread Russian corruption and lack of independence in Russia’s legal system, and its courts in particular. This, according to the report, is due to the government’s growing political interference. Novaya Gazeta, Russia’s best-known opposition newspaper, claims that corruption in Russia is the rule, and “business is impossible without it.”

Moreover, Russian Minister of Economic Development and Trade German Gref, speaking at an investor conference in Moscow last week, admitted that “everyone knows the Taxation Service is corrupt.” Leading investigative reporter Roman Shleinov claimed recently in London, that attempts to expose this corruption resulted in more than 2,000 dead journalists in the last decade.

Russia’s economic growth — more than $515 billion in foreign currency and gold reserves — make Putin very popular among his people, despite the corruption and his regime’s growing restrictions on civil and human rights, freedom of the press, and private, public and foreign entities. Most recently, his popularity reached over 70% approval ratings. Not surprisingly, Putin disregards whatever domestic and foreign criticism of his centralized and authoritarian government. He even declared: “I am an absolute, pure democrat— I am the only one, there just aren’t any others in the world.”

Russia’s long tradition of autocratic regimes seems to empower Putin’s undermining of Russia’s recent history of democratic capitalism. With ever-increasing frequency, Russia uses its corrupt courts to legitimize nationalizing and confiscating private and public corporations from entrepreneurs who built their wealth and the Russian economy on the ashes of the crumbling Soviet infrastructure. Those allowed are holding onto their corporations and vast personal wealth, carrying out Putin’s agenda of centralization and consolidation of domestic and even global strategic resources and industries such as aluminum and steel, and above all, energy. Continue reading “Business…Russian Style” →

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