Just say ‘Nyet!’ – Corruption in Russia

In yesterday’s International Herald Tribune, Brook Horowitz (executive director of the Russian office of International Business Leaders Forum) penned a very interesting article – Just say ‘Nyet!’ – about Russia’s new President Dmitri Medvedev’s first decree as president to to create and chair an anti-corruption committee. It has caused quite a stir in a country that has been persitently dropping in Transparency International’s Corruption Perception Index. Horowitz notes:

Largely unnoticed, many Russian companies are beginning to do something about corruption even before new legislation is put into place. They are starting by getting their own houses in order. They are strengthening corporate governance by creating clearer separation of board and management competencies and responsibilities, introducing International Financial Reporting Standards (IFRS), greater transparency of accounts and disclosure of shareholders, and nominating independent directors to the board.

CIPE and our partners in the Russian business community have been advocating for these types of reforms for a some time. The Russian Institute of Directors, for example, has been very active in developing human capital needed to ensure effective boards of directors. We’ve worked on the other fronts as well.

Just this past week CIPE Partner the Saratov Region Coalition of Business Associations scored a major victory in the fight against corruption. All 42 municipalities of the Saratov region have adopted the anti-corruption municipal program developed by the Saratov coalition. The Saratov Chamber of Commerce and Industry has helped train experts to analyze municipal legislation for corruption potential. The effort aims to reduce corruption throughout the region by the elimination of “holes” in legislative and statutory acts that encouraged the growth of corruption. The municipal programs are a result of an October 2007 CIPE workshop that trained legal experts in the methodology of examining statutory acts.

It’s great to see that our work at the regional level is trickling up to the federal government. It will take time to see how effectively these reforms are followed, but let’s hope for the best! Click here to learn more about the work CIPE is doing in Russia.

Published Date: June 13, 2008