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The Many Faces of Corruption in the Russian Federation

Gregory Kisunko's picture

"No single national score can accurately reflect contrasts in the types of corruption found in a country." Michael Johnston, 2001

Corruption comes in various forms - administrative corruption being one example, state capture (a.k.a. “grand corruption”) being another. Although administrative corruption is not necessarily the most damaging form for economic growth and private sector development in Russia, and while its occurrence appears to be declining in Russia, perceptions of “state capture” are worsening.

Russia’s growth prospects: what about aging?

Kaspar Richter's picture

Spare a thought for the economist.

While in the past, people might have resorted to reading tea leaves to figure out what their future has in store for them, these days, at least on economic matters, people turn to the next available economist. But while economists are great at analyzing the past, predicting the future is still a complicated task.

In order to come up with projections, economists look at data. Now, it turns out that economists are often making long-term assessments based on the latest news. Take a look at these growth projections for ten years ahead for Russia, based on polls of economists conducted by Consensus Economics, along with actual growth in the year of the projections (Figure 1).  Clearly, while long-term projections are less volatile, the two are correlated – the better the present the better the future, and vice versa. In particular, long-term projections have noticeably nudged down since the crisis.

Figure 1: Actual Growth and 10-Years Ahead Growth

 

Projections for Russia (percent), 2004 to 2012

Prospects Daily: Spanish and Italian bonds advance…Investor confidence in Germany rises strongly..

Financial Markets…Spanish and Italian government bonds bounced back from their earlier losses, with their benchmark 10-year yields dropping 6 basis points to 5.17% and 4 bps to 4.36%, as a report showed German investor confidence surged to the highest level in nearly three years this month, boosting risk-appetite for the region’s high-yielding debt. Notably, Spain sold €4 billion ($5.35 billion) of 3- and 9-month bills with an average yield of 0.421%, down from 0.441% in January auction.

Russia's Economy - a Reality Check

Kaspar Richter's picture

Every six months, my colleagues and I get together with other members of the Russian economic report (RER) team, to figure out where the Russian economy is heading.

To do this, we rely heavily on macroeconomic data from the national statistical office, the Ministry of Finance, the Central Bank and other sources. While this sounds straightforward enough (given it’s what economists around the world do when they compile their latest economic assessments) – it’s a rather indirect way to assess the issue.

The World Bank will help open government data in Ulyanovsk Oblast (Russia)

ICT Team's picture

Open Government is increasingly perceived as a new paradigm for ICT-enabled government transformation offering a number of instruments for improved governance, transparency and innovation. Ulyanovsk Oblast of Russia has already made substantial progress in e-government, IT industry development and IT literacy, and has taken practical steps that have made it an early leader in Open Government initiatives in Russia, as recognized in a study published in May 2012 by the Russian Institute of the Information Society.

An analogy about cars, trust and financial capability

Siegfried Zottel's picture

Imagine you need a car to commute long distances to your workplace or the closest supermarket, to visit your parents and to bring your child to school. Therefore, you want to spend the money you have been able to put aside on a large purchase: a new and reliable car.  However, you do nFinancial education enables the unbanked to participate in financial markets. (Credit: The Advocacy Project, Flickr Creative Commons)ot know how to drive, nor how do you have even a basic understanding of any technical aspects of a car, not to mention any knowledge about how to maintain a car.
Also, imagine that everything you have heard so far about car dealers from your family, friends and neighbors is that they have a very bad attitude, do not act in your best interest and try to sell you overpriced vehicles with hidden fees and features you do not need. Given your lack of knowledge of how to choose and use a car and your lack of trust, would you still feel confident about approaching a car dealer? Most probably not.

This analogy also applies to one’s participation in financial markets. Especially in developing economies, where most globally unbanked people live. If you do not have knowledge of features and risks associated with financial products, do not know how to choose and use these products, lack any basic understanding of inflation, interest rates and compound interest, it is unlikely that you will participate in financial markets, or that you will benefit from them if you do. A lack of trust in financial service providers will do the same.

Modern Schools for Modern Times

Tigran Shmis's picture

Also available in Spanish and French


Spending a day at a kindergarten can be eye-opening for an adult. I’ll tell you why.

The school in question is what we, in the Russian Federation, call an inclusive school – where children with special needs are part of a regular kindergarten and participate in the same activities and programs as others. It works! This school was started in 2011 and does not distinguish between children with special needs and others. Both groups are part of the same class, sit at the same table, and participate in the same activities. Not many places in the world do this.

The inclusive model, while not unique, is still rare. But other than that distinctive nature, what’s so special about it?

Open Government Will Accelerate in Russia

Jeff Kaplan's picture

Open Government is making real inroads in Russia today.  That was the message delivered at a recent workshop organized in Moscow by the World Bank and the Open Development Technology Alliance.

 

Weekly Wire: the Global Forum

Kalliope Kokolis's picture

These are some of the views and reports relevant to our readers that caught our attention this week.

One
Citizens and civil society tell governments: Make budgets public now!

Last Friday in Tanzania, nearly 100 civil society groups and 12 international organizations, including the International Budget Partnership, Greenpeace and ONE, launched a global effort to make public budgets transparent, participatory and accountable. Budgets are the most critical tool that governments have to address problems like poverty, provide critical services like education and health care, and invest in their country’s future. When the political speeches end, it is how governments actually manage funds to meet their promises and priorities that matters.

The Civil Society Movement for Budget Transparency, Accountability and Participation envisions public finance systems that make all budget information easily accessible, provide meaningful opportunities for citizens and civil society to participate in budget decisions and oversight throughout the process, and include strong institutions to hold governments accountable for how they raise and spend the public’s money.  READ MORE

Prospects Weekly: Q3 Euro Area GDP growth remained positive

Despite escalating debt concerns, Q3 Euro Area GDP growth remained positive mostly on account of robust growth in the two largest economies Germany and France. Q3 GDP growth was even stronger in the US, Japan and China (all of which benefitted from the post-Tohoku bounce back), with consumer spending also being an important growth driver.

Prospects Weekly: Concerns about global economic prospects amid loss of confidence

Concerns about global economic prospects amid heightened financial market turmoil are weighing on consumer spending despite the relief coming from lower commodity prices. Associated uncertainty is reflected in a sharp decline of gross capital flows to developing countries in Q3, with bond and equity flows having plunged as investors sought safe-haven assets.

Prospects Weekly: Ongoing debt-limit debate and disappointing growth reports weighed on the U.S. dollar

European heads of state agreed on a €109 bn second financial package for Greece today. About one-third of the financing will be covered by debt swaps or rollovers by private bondholders. Aside from improving the terms of existing multilateral loans, the leaders also agreed to expand the European Financial Stability Facility’s mandate, including authority to buy bonds on the secondary market.

The impact of the global crisis on remittances: Case of Russia and Tajikistan

Sudharshan Canagarajah's picture
  Photo © iStockphoto.com

The Russian economy suffered a double blow in 2008; first from the drop in world crude oil prices and secondly from a reversal of capital account inflows. The fall in national income and the adjustment of the balance of payments to the external shocks triggered a steep recession. After recording real GDP growth of 8.1 percent in 2007, growth fell to 5.6 percent on 2008 and then to negative 9 percent in 2009, one of the steepest falls of any major economy. This affected remittances, mainly to other CIS economies, through two channels: first because of a contraction in employment, especially in the cyclically sensitive construction industry and secondly because the depreciation of the Russian rouble, by 51 percent against the US dollar between March 2008 and March 2009, reduced the dollar value of remittances.

Remittances to Tajikistan fell much more sharply in the final quarter of 2008 than can be attributed to seasonal factors alone. The slump continued throughout 2009 with gross inflows of remittances valued in US dollars for the year falling 31 percent below the total for 2008. How did this fall in remittances, of more than $800 million (about one sixth of GDP) relative to the level in 2008, affect the macroeconomy in Tajikistan? There are three possible channels of adjustment to a reduction of foreign exchange inflows of this magnitude.