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Russia’s growth stifled by corruption

BBC News

President Vladimir Putin has said he wants to make Russia the fifth-biggest economy in the world.

It currently stands at number 11.

He wants to boost foreign investment as part of his new economic plan.

But some foreign investors are worried about Mr Putin’s return as head of state for another term of six years after allegations of vote-rigging and protests both before and following his re-election.

Furthermore, despite Russia’s rich resources and its place among the world’s fastest-growing economies, there remains a general feeling that the country is underperforming and falling far short of its potential.

According to Angus Roxburgh, former BBC Moscow correspondent and later a public-relations adviser to the Kremlin, there is one overriding reason why Russia is failing to achieve its economic potential and failing to attract outside investors: corruption.

Worsening scenario

“It is something the government acknowledges but seems powerless to combat, despite a regular stream of anti-corruption decrees and initiatives,” he says.

“In fact, it gets worse year by year. According to official figures, the average bribe in Russia is more than $10,000,” he notes.

Transparency International, which ranks countries according to perceived levels of corruption, says Russia has slumped from 46th place in 1996 to 143rd in 2011 .