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markhagelin

Is corruption a real problem in the FSU or is it just something that Westerners who live outside the FSU have made a big issue out of?

If it is a problem what is being done about it? Or what would you do to solve it?

How, without violence, would you end corrupton if there is a problem?

What steps, if any, would you take?

Can the problem be solved? How?

What would you do to stimulate the economies of the Ukraine or Russia to get rid of corruption?

I am asking these questions of the citizens in the FSU to get their take on the situation and what, if anything can be done.

Mark Hagelin

AliceFromMoscow · WayToRussified Joined: 10 Jul 2004 Posts: 411

Corruption is a very big problem. You can do almost everything with a proper amount of money. When you get stopped by GAI(State auto inspection) who fine for breaking speed limit, and other driving things, you just give them money, you can drive being drunk just be sure that you have 100 bucks to pay GAI. I knew a man who was stopped on a stolen car, and officer let him go for 1000 rubles, though he knew that the car was stolen, and so on.
You can get to any university if you are not smart enough to pass the exams but rich enough to bribe the examinator, you can win almost any judicial proceeding, if you have money to bribe the judge, the bigger crime, the higher bribe.
its like that because its not profitable for them to punish you, but it is profitable to make you pay, so they dont care..

But there are people who cant be bribed, but they are very rare.

All those militia on streets of Moscow, do you think they check everyone for safety? NO! They check who doesnt have registration in Moscow so they can fine him and get money!

Dr-Fauste · Site Admin Joined: 23 Nov 2004 Posts: 654

With the events in Beslan and Air crashes, Putin (supposely) declared a war on corruption. Is it the same?

It is forbidden, but if you really want to , then it is allowed.

markhagelin · Posted: Thu Nov 25, 2004 1:11 am Post subject:

Alice

What can be done about it?

Any ideas on how to solve the problem?

Mark

VictoR-Tdot · Lounge Lizard Joined: 16 Nov 2004 Posts: 87

When the majority of the people in power are corrupt, I don't think it can be solved.

[edited in: ok maybe it can be solved but only if the economy gets better, which I don't think will happen anytime soon.
Cops get very little $ there and some rely on bribes to make ends meet (at least that's what i heard from my friend who knows a cop down there) ].

Dr-Fauste · Site Admin Joined: 23 Nov 2004 Posts: 654

markhagelin · Posted: Thu Nov 25, 2004 1:46 am Post subject:

http://www.cipe.org/publications/fs/ert/e28/pidle28.htm

Corruption Versus Clean Business in Ukraine

by Inna Pidluska

Inna Pidluska is UCIPR's project director for the Ukrainian edition of Economic Reform Today and economic roundtables.

Communism has left a legacy of corrupt business practices in the former Soviet Union, now known as the New Independent States (NIS), according to a number of recent international analyses of the current business environment. During the communist period, business managers responded to inefficiencies in the central planning system by cultivating personal relationships with government officials, allowing them to work around frequent changes in production targets and supply shortages. In today's evolving market conditions, the private sector in the NIS exhibits similar behavior by preferring to conduct its business in the shadow economy where corrupt relationships with public officials tend to be more predictable than the government's highly unstable policies. A 1997 World Bank survey of 3,600 entrepreneurs from 69 countries found that the credibility of corrupt transactions was far higher, while the credibility of government policy was lower, in the NIS than in any other world region.

Ukraine's President Leonid Kuchma has identified the main obstacle to business development as bureaucratic abuse of power, bribery and extortion. He also admitted that the government has failed to create conditions for conducting business honestly.

Victor Vasylkov, senior task officer of the General Department for Fighting Organized Crime of the Ukrainian Ministry of the Interior, admitted that current legislation stimulates corruption among civil servants. Business activities are regulated by as many as 32 laws, about 30 presidential decrees and over 80 resolutions. Furthermore, 32 ministries and departments have the right to issue licenses for various activities. How could any businessman keep up with all of this?

Deciphering government policy

One of the latest additions to this menagerie of policy pronouncements is a March 1998 presidential decree that introduced the term, "tax collateral." If a firm cannot pay its tax debt, this decree authorizes the government to seize all of its bank accounts, except its primary account. If there is no money in these accounts, the firm's property and property rights can be confiscated and sold as tax collateral. Remarkably, the decree did not concern state-owned enterprises, most of which have been bad debtors for years.

The big surprise for business managers is that tax collateral is applied retroactively to debt accumulated before the signing of the decree. Although the Cabinet of Ministers has yet to develop official mechanisms for enforcing the decree, there have been numerous cases throughout the country where local authorities have invoked the decree to confiscate the property or products of businesses. Due to massive pressure from entrepreneurs, business associations, politicians, and the media, there is still a strong chance that parliament will overturn the decree. Even if this were to happen, however, it still does not guarantee that it would cease to be enforced.

Regulation and inspections

In addition to the challenge that businesses face in keeping up with unstable government policies, they are also subject to the highly unpredictable behavior of inspection agencies. According to a recent study conducted by the International Finance Corporation (IFC), more than 30 government bodies have the power to inspect private enterprises at almost any time and for any reason. Bohdan Rybak, President of the Association of Entrepreneurs "Infobusiness," a CIPE partner in Ukraine, considers the major problem with such inspections to be the unavailability of clear rules and regulations. Furthermore, businessmen are often unaware of the specific requirements of a particular governmental inspection agency. In short, the current regulatory system allows inspectors to use a great deal of discretion in their work. This is a breeding ground for corruption.

The requirements of inspection agencies also place a tremendous burden on businesses. For example, according to the IFC's survey, the average Ukrainian manager spends two days per week on inspection issues. Firms must respond to an average of 78 inspections annually, while also receiving an average of 68 inquiries requiring written responses. Graph 1 provides a sample of some of the inspection agencies active in Ukraine and the average number of times they inspect a single business over the course of a year.

Moving into the shadows

The size of Ukraine's informal sector, or "shadow economy," reflects the high degree of corruption. It is currently estimated that seven out of ten enterprises work in the shadow economy. These companies have no protection from corruption and are open targets for bribery and other forms of graft.

A survey of enterprise managers by the Ukrainian Market Reform Education Program in June 1998 found that 96% of respondents attributed the stagnation and failure of privatized firms to high taxes. They also cited current tax policies as reasons for massive tax evasion and the expanding shadow economy. Other factors included corruption among officials of the national authorities (59% of the responses), corruption among local civil servants (52%), and state regulation and interference with business activities (36%).

In mid-1994, President Kuchma announced broad taxation reform, but the first real attempt was a taxation package presented by the government for approval of lawmakers in November 1996. This initiative would have reduced the payroll tax to 32% from 51%, personal income tax to 30% from 40%, and the Chernobyl tax to 6% from 12%. Parliament voted down this package, and debate on tax reform has been frozen ever since. Until the tax situation changes, there is little hope of enticing companies to return to the formal economy.

Competing against corrupt firms

On top of the challenges that businesses face in coping with an unfriendly policy environment, there is also the issue of keeping up with the competition. IFC's study found that 96% of respondents felt "it is impossible to compete fairly in Ukraine." In addition to the misuse of inspections as a means of harming competitors (45% of respondents), which is a form of collusion between competitors and civil servants, survey respondents also cited numerous other unfair practices that directly relate to the activities of competing businesses (see Graph 2).

Successful businesses keep clean

Despite general skepticism about the prospects of eliminating corruption and bringing the major part of Ukraine's businesses out of the shadow economy in the foreseeable future, there is growing understanding of the need for "clean" business attitudes among entrepreneurs. An increasing number of well-established private businesses believe that keeping clean from corruption and bribery in the long run produces more advantages than slipping into the "shadows."

Companies that want to manage the market instead of adjusting to it are becoming increasingly concerned about tax evasion and smuggling by their less law-abiding competitors. Consequently, they are urging that measures be taken to counter the shadow economy. Igor Kiriushyn, vice president of Shelton Company, a major importer and supplier of oil to Ukrainian refineries, claims that his company has never used barter. Shelton owns a network of gas stations and is the major shareholder of Ukraine's sixth largest bank, Ukrinbank, owning about 35% of the bank's stock. In 1997, Shelton made UAH 4 million net profit and paid UAH 12 million in taxes. According to Shelton's vice president, despite the very high tax burden, the need to maintain the company's positive reputation—a priority for Ukraine's five or six largest oil importers—discourages them from "getting dirty."

The stronger and "cleaner" the company, the more difficult it is for corrupt bureaucrats to extort bribes, Kiriushyn said. He added that bribes are paid in order to violate the law or to obtain a service that should not be provided. "There is no need to give bribes in this country," said Kiriushyn. "There is a need for good management and to make sure that one's staff perform their duties well." He argued that major companies cannot escape paying taxes, and because they have achieved a certain level of prominence, they gain respect and immunity from harassment by governmental inspection bodies. The problem is that new and small businesses find it increasingly difficult to achieve prominence in the environment of oppressive taxation and severe regulations.

Oleksandr V. Slobodyan, director general of the Obolon Corporation since 1990, who resigned recently after being elected a member of parliament, is one of the few "surviving" elected directors from the Gorbachev period. He was elected director by the working collective of the Obolon plant, a major producer of beer and sodas. Half a year later, Slobodyan succeeded in striking a rent-and-buy deal with the government that allowed the working collective to rent their plant and purchase it on installment at the book price. In mid-1992, Obolon received Privatization Certificate No. 1 from the State Property Fund and became a closed joint-stock company. Currently the corporation has about 2,000 shareholders, and the largest package of shares—0.5% of the stock—belongs to a foreign investor.

Last year Obolon paid UAH 73.3 million, equivalent to 130% of its net profit, in taxes. Although he admits that high tax pressure impedes business development, Slobodyan claims that the company survives in today's market conditions by raising the quality of its products and building up its competitiveness. In 1997, the corporation's turnover grew 25.9%, and growth has exceeded 23% since January 1998. Obolon is building capacity by reinvesting profits and is determined to maintain its leadership in the industry. Currently, 11% of the net profit is paid to shareholders as dividends.

One of the ways in which the board of directors of Obolon keeps "clean" is by ensuring transparency of decisionmaking through a clear statement of the company's strategy and by making reports to regular meetings of shareholders. The board also calls meetings of shareholders to discuss important issues that may affect their interests. Decisions are made through voting by members of the board, and key directions are chosen through a vote of general shareholders at annual meetings based on the principles of accountability and business responsibility.

There are more disadvantages to running a shadow business other than the potential of damaging one's business reputation. Oleksandr Rzhavsky, a newly elected MP and founder of Corall Holding, a privately owned network of companies and a bank, argues that informal business activity prevents firms from accurately estimating the volume of business- related expenditures that will grow in proportion to the scale of violations committed by owners and managers.

Coping with the problem—What to do?

If it is true that many of Ukraine's problems with corruption are rooted in its communist past, the situation is unlikely to improve quickly. However, all analysts agree that the most effective way to reduce the underlying causes of corruption would be to enhance the predictability of government regulations and intervention. The government and private sector can take the following specific initiatives:

Improve regulation and inspection procedures. In order to increase confidence in the government's regulatory role in the economy, efforts should be made to: simplify government regulations and inspections; systematize and unify the work of inspection agencies and the procedures for conducting inspections; publicize clear and understandable information on inspections and the rights and duties of inspection agencies, and make taxation bodies liable for unfounded verifications, or establish an agency that registers inspections and limits the number of inspections. Many businessmen believe this would discourage frequent inspections.

Unified business tax. In order to keep businesses out of the shadow economy, urgent measures are needed to reduce the taxation pressure and replace at least a portion of multiple taxes with a unified business tax. The high cost of doing business in Ukraine also relates to the key objective of inspection agencies which is to extract the maximum amount of money from a company. In order to cope with this problem, tax compliance should be simplified, and control by inspection agencies should be made transparent.

Improve enforcement of "conflict of interest" legislation. Legislation that disallows conflicts of interest is already in place. These laws prohibit officials and MPs from using their positions to assist individuals or legal entities in entrepreneurial activities or in receiving subsidies, subventions, and loans or other benefits. However, the obscurity of these regulations leaves them unenforced. This legislation has become even more important because the March 1998 parliamentary elections produced a group of 114 unaffiliated MPs, many of whom are businessmen.

Reform the status of civil servants. There is no consensus in the business community about whether increasing the salaries of civil servants will reduce corruption. However, most businessmen agree that the status, responsibilities and benefits of civil servants should be increased significantly, while their number should be reduced.

Develop business associations. Rather than relying on illicit negotiations with government officials that take place behind closed doors, entrepreneurs suggest developing business associations that would effectively lobby their interests in the parliament and the government. In a survey conducted by the Ukrainian Free Economy Foundation, almost 75% of the managers surveyed said that the most effective ways to advance their business interests were personal contacts and friendly relations with government officials. Fifty-
nine percent said they would rather prefer to pay to be members of an effective lobby.

What will happen?

In his speech to the Cabinet of Ministers in June 1998, President Kuchma called upon the government to reduce the scope of opportunities for corrupt civil servants. In order to discourage the "shadowization" of the economy, the government plans to draft decrees that will simplify the regulatory burden of small enterprises. The new Ukrainian parliament is also expected to be more pro-reform than the previous legislature. Major business owners and managers say that they came to the parliament to make positive changes to the unfavorable business environment. The economic transformation process appears to have reached a critical point, and their contribution to the president's reform course could help reach a consensus on burning economic issues.

The question is whether new policy actions will build business confidence in the government's role in the economy. Or, will these initiatives languish in debate and continue to undermine the credibility of government policy, thereby creating more incentives for enterprises to choose corruption over "clean" business?

http://www.brama.com/survey/messages/24320.html

Thursday, Oct. 30, 2003. Page 2

Kuchma Dismisses Prosecutor for Failing to Cope With Graft

Reuters KIEV -- Ukraine's President Leonid Kuchma fired the prosecutor general on Wednesday following a wave of criticism of his failure to stamp out graft in the country rated as one of the world's most corrupt countries.

Olena Hromnytska, Kuchma's spokeswoman, said the president had signed a decree to sack Svyatoslav Pyskun, who was appointed just over a year ago. She gave no other details.

Senior officials from Ukraine's corruption watchdog called on Kuchma earlier on Wednesday to sack Pyskun, accusing him of failing to achieve any notable success in tackling corruption.

"We suggested to the president that he sack Prosecutor General Svyatoslav Pyskun because he violated several laws and carried out disgraceful actions," Olha Kolinko, head of the watchdog committee, was quoted by Interfax-Ukraine news agency as saying.

The committee, grouping senior officials from the prosecutors' office, tax authorities, SBU secret service and the Interior Ministry, also accused Pyskun of abusing his power, promoting his own political image and misusing budget funds.

Pyskun was not immediately available for comment on Wednesday, but has previously denied the allegations and said he was doing his best to stamp out corruption.

Ukraine, which will neighbor the European Union when Poland, Hungary and Slovakia join next year, is rated as one of the most corrupt states in the world by Berlin-based graft watchdog Transparency International.

Promises to battle corruption are a perennial theme in public affairs but little has been done in a country where the black economy is about the same size as the official one and capital flight is common.

Pyskun has been also criticized by opposition parties for his inability to investigate Ukraine's most notorious case -- the murder of reporter Heorhiy Gongadze in 2000, who had been critical of Kuchma and other senior officials.

markhagelin · Posted: Thu Nov 25, 2004 2:04 am Post subject:

#5 - JRL 8419 - JRL Home
RFE/RL
October 20, 2004
Analysis: Putin's Secret Plan To Combat Corruption?
By Julie A. Corwin
Copyright (c) 2004. RFE/RL, Inc. Reprinted with the permission of Radio Free Europe/Radio Liberty, 1201 Connecticut Ave., N.W. Washington DC 20036. www.rferl.org

This week, Russia wound up again at the top of another international ranking of corruption. Russia shared the 90th slot with India and Gambia in a ranking of 146 countries, with the countries perceived to be the least corrupt on top, according to a survey by Transparency International. Last week, Russia got another vote of no confidence, when it finished fifth in terms of corruption, according to a survey of business leaders in 104 countries conducted by the World Economic Forum. Only Madagascar, Ukraine, Macedonia, and Chad registered higher levels of corruption. That survey concluded that corruption is Russia's greatest economic weakness.

Help might be on the way, according to Jonathan Schiffer, vice president of Moody's Investors Service. In an interview with Interfax published on 15 October, Schiffer argued that President Vladimir Putin's recent proposal to abolish gubernatorial elections could reduce corruption. "It is possible that the new reforms for the appointment of governors could lead to a different situation in the regions and a more efficient economic situation with less close connections between regional governors, banks, and, local wealthy individuals; more room for competition; and more room for small business enterprises," he said.

"We all know that many regional administrations in the past even interfered with taxation legislation and things like this formally and informally through some pressure on local entrepreneurs," Schiffer continued. "I think it's possible that an unintended consequence of these reforms in the economic area will be a little more space for local and regional entrepreneurs and a little more competition."

In addition, Schiffer said the cancellation of the elections could have a positive impact on the judiciary. "Breaking up the power of the local public administrations can be seen as a 'necessary if not sufficient' condition for the possibility of a more independent judiciary operating in the regions in the future," he said.

Putin did not link his proposals with the fight against corruption when unveiling them on 13 September. However, RFE/RL's Russian Service reported on 15 September that an unnamed administration official admitted that the proposals had been developed long ago and that the tragic school hostage taking in Beslan, North Ossetia, last month merely created an appropriate political atmosphere for bringing them forward. "Izvestiya" wrote on 16 September that an unnamed "upper-level" official divulged that "the point" of the president's proposals "is to remove regional leaders from the influence of regional circumstances and private businesses." In addition, Sergei Markov of the Institute of Political Studies told ORT on 14 September that "the promotion of executive-branch unity should become an instrument, a lever to significantly decrease corruption."

The optimism of analysts like Schiffer and Markov seems based on the assumption that when making his regional-executive appointments, Putin will clean house, removing corrupt or ineffective members of the current crew of governors.

Interestingly, the governors themselves do not seem to be worrying about this possibility. Almost without exception they have publicly embraced Putin's proposal, and according to "Nezavisimaya gazeta" on 19 October, they have been meeting with Putin in droves seeking the renewal of their current "contracts." Center for Political Technologies Deputy General Director Aleksei Markarkin told the daily that "each [regional leader] wants a solid guarantee from the Kremlin that he will remain in power, or at the very least will be able to name his successor."

Putin's track record in past gubernatorial elections undoubtedly contributes to the governors' sense of ease. In those gubernatorial races in which the presidential administration expressed a preference, loyalty -- often measured in terms of the ability to deliver local votes for the pro-Kremlin Unified Russia party in the State Duma elections -- seems to have been the only requirement. In 2000, Putin showed some sign of wanting to install his own people in the regions. However, by the time the 2003 State Duma elections rolled around, pragmatism prevailed. The Kremlin backed for reelection, for example, the authoritarian president of Bashkortostan, Murtaza Rakhimov, head of a republic where there is little political or economic pluralism. Like former President Boris Yeltsin, Putin has placed the highest value on loyalty.

Perhaps for this reason, few of Russia's leading experts on both corruption and elections have rushed to embrace Putin's plan. Georgii Satarov, head of the INDEM Foundation and author of many studies of corruption, has condemned Putin's plan to cancel regional elections. In remarks published in "Izvestiya" on 16 September, Satarov said, "when viewed as a whole, the measures proposed by the president indicate the intention to create a simulation of politics, a simulation of activity, a simulation of civic oversight." Commenting on Putin's proposed Public Chamber, Saratov noted that "Putin has already created a body that was supposed to oversee lawmaking: the Anticorruption Council. And the only thing this council ever did was elect [then Prime Minister] Mikhail Kasyanov as its chairman. In my view, civic oversight is not a matter for state bodies created from the top down."

Putin's proposal also attracted criticism from the usually loyal Central Election Commission Chairman Aleksandr Veshnyakov. While on a trip to Vologda last week, Veshnyakov said that among the possible negative consequences of appointing regional governors could be increased opportunities for corruption, "Novye izvestiya" reported on 15 October. He noted that once elections are abolished, the fate of each regional leader will be decided by an increasingly small number of people -- no more than 200 -- who work in the presidential administration and regional legislatures. "There might be a temptation," Veshnyakov said, "to make some incorrect decisions, in connection with personal or financial relations." And this was not Veshnyakov's first mention of corruption in connection with the election reforms. In an interview with "Rossiiskaya gazeta" on 15 September, Veshnyakov recommended that "it would make sense to retain the four-year election cycle for regional leaders and introduce a number of measures to deter the spread of corruption during the process of electing regional leaders."

Schiffer and Markov apparently want to give Putin the benefit of the doubt. However, if the past is any guide to the future, there is little reason to expect that this set of reforms was intended to produce anything but greater centralization, the increased marginalization of regional political elites in the formation of national policy, and less economic and political pluralism at the regional level.

Mogsfan · WayToRussified Joined: 03 Nov 2004 Posts: 490

I agree with the poster who questioned whether "the problem" can be solved. I wasn't going to post about politics or history any more but I still think it's an interesting subject and unfortunately (whether you like it or not), it is a very important topic whenever you discuss Russia. Like it or not, this topic is very crucial for Russians and for any chance to improve conditions in the country.

You can't eliminate corruption since people are people but perhaps, you can work on curbing it a little or the degree. Yes, there are degrees of corruption and unethical behavior going on even in so-called democracies with rules of law. But, at least, there is some resemblance of law and order including guidelines and punishments for breaking those laws. If Russia is a place of bribes and backhanded deals, then I think it is safe to say there is the start of a major philosophical difference between Russia and the West. There are many people outraged at the corruption and deciet by politicians and governement here in the West. That is one difference. Some people do value integrity and ethics. There is just so little one can do, though. However, you get the impression that ordinary Russians consider it a fact of life or something to be tolerated. In that, you can notice a difference of values. I am merely suggesting this based on Alice's statements about bribes etc. Also, I have read enough to not be surprised at her post.

It is not merely a topic about capitalism v.s. socialism. Look at China. Their country is communist and they are opening up the economy even if it is controlled. Major corporations want to invest in China. China's exports make Russia look like a third world country. Russia has a lot of work to do and a lot of Russians need to wake up. I liken the situation to alcoholics denying they have a problem. If Russians continue to neglect the situation and refuse to acknowledge the problems, the situation will not improve much if at all. Being a rigid Nationalist and refusing to take a good honest look at the problems and tackle on the battles that will be needed will acomplish nothing. I bet many Russians have left the country because they perceived it to be helpless there. I know I will be denounced for saying this, but I think the individuals who asserted they wouldn't leave etc. are full of.... <fill in blank with obvious expletitive>

markhagelin · Posted: Thu Nov 25, 2004 2:17 am Post subject:

I posted 3 articles. 2 in 1 post and 1 in another.

Will any of the suggestions offered, help?

Mark

Dr_Strangelove_82 · Just Starting Joined: 14 Nov 2004 Posts: 7

markhagelin · Posted: Fri Nov 26, 2004 3:22 am Post subject:

What is going on in the Ukraine?

Have the Ukrainians receached a breaking point?

For the first time Ukraine citizens are protesting in the streets?

Opposition presidential candidate Viktor Yushchenko is pro-West.
Does this mean a further move of the Ukraine towards the EU?
Does this mean the Ukraine citizens desire closer ties to Europe and perhaps America?

Does this mean they are unwilling to give up the freedom which they are enjoying to favor a return to the old ways with Moscow-backed Prime Minister Viktor Yanukovich ?

Can Yushchenko do what Leonid Kuchma has been unable to do, rid the Ukraine of corruption?

Does the possibility of election corruption and how Ukrainian demonstrations and the threat of a nationwide stike signal a massive williness to have something done about corruption?

Mark

Mogsfan · WayToRussified Joined: 03 Nov 2004 Posts: 490

I think it's cool that the law enforcement officials and military have said they won't stop the protesters or interfere. Bravo! IMHO, this is not a West v.s. East (or specifically, Russia) issue. Even if it is, in a way, to Ukrainians. This is about ethics and law at the highest degree. This is about striving towards democracy and rule of law as much as possible and as genuine as possible. The fascade that occurs or exists in the FSU and the former Soviet Satellite states needs to be addressed and discussed.

I really hope ordinary Russians who want their country and society to improve for the better will congratulate and support Ukrainians in their quest for justice, ethics and rule of law. At least, the Ukrainians who uphold the principles. If the Russian-backed (more like Putin-backed) candidate had won squarely and according to universal laws and ethics, it would be different and we would have to accept it as the will of the people. But, the B.S. that happened and the subsequent fraud should not be tolerated. Kudos to the Ukrainians for refusing to accept the propaganda and lawlessness of the perpetrators. Even if it stems mostly from a reluctance to be under Russia's wing. The fact is that there is a principle that goes deeper than the desire to be independent from Corrupt Russia's influence.

markhagelin · Posted: Fri Nov 26, 2004 5:06 am Post subject:

Randy · Posted: Fri Nov 26, 2004 5:59 am Post subject:

This topic, and the reply's really show's the big picture, thanks. I was once interviewed by a corespondent with the Moscow Times, along with one from the Pravda paper, and they asked me the question have I had any experience with corruption in Russia, and what I thought could be done to overcome it. I wish that I had all this info before they asked me my opinion's.
On a smaller level concerning this post, I have some experience with being face to face with the corruption. My brother in law was with the Militia for several years and quit because of the corruption. My office in St.Pete was donated to me, complete with all the office machines and secretary, by one of the Russian Mafia families. I have several friends that are now in that Family, and have talked to them at great lengths to understand their reasoning of why they do what they do. I have help a Christian church there, unknowing at the time, that the church officials were corrupt. I have dealt with government officials in my business dealings, and learned that bribery is just a way of doing business with no remorse. Since I am not an economist, or a political major, I would know very little on how to remedy the situation of corruption. I can only simply say that the changes must start at the top, and I understand Putin is doing that somewhat. Contridicting myself, maybe it would be better to begin at the bottom of the political relm, with the common working class folks who are getting real tired of the corruption and want to do something about, like a small revolution against the corruption. Maybe that is what's happening in the Ukraine now. I liken their corruption to our Prohibition Era, Fauste wrote, where a majority of our government, and law enforcement were corrupt. Of course Russia, and the circumstances are different. It took some very major changes for us to overcome that, but I think it will be a lot more harsh and time consuming to do the same in Russia. Oh well, just my thoughts.......

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