The Russian economy is in rapid decline and statistics are shocking. Wages have gone down by 9.2% in 2015, which is the biggest fall since the economic downturn of the late 90s. This did not even happen in the global recession of 2008. With the prices of basic goods rising daily, as the rouble is dropping, Russia is in turmoil. The impact of this decline is being felt deeply by the general Russian population, who can only wish that there is light at the end of the tunnel. A flicker of hope on the horizon is the potential for growth in private enterprises. However, this is being severely obstructed by corporate corruption.
Robbing the Nation, and the World
Widespread lawlessness is stifling what little economic growth is left. This is damaging the fiscal stability and expansion of the country and yet, it continues to be tolerated by the Russian government. A chronic imbalance exists. Companies that were previously making a profit are now getting scooped up by rich Russian robber barons. Like TogliattiAzot and Sergei Makhlai – a Russian chemical company and its COB – both suffering immensely because of corporate raiding. Sometimes company officials are even arrested for trumped up charges and allegations that are not genuine, but contrived as a means to an end. This is not only affecting the lives of the employees at the targeted companies, it is contributing to the overall economy of the country – and could even impact economic stability around the globe.
Arrest the Robbers, not the Entrepreneurs!
The business climate in Russia has been cold for several years and corruption is rife. There is an urgent need to wipe out corruption and make space for widespread reformation. The way forward is for the government to put a solid framework in place in which companies and entrepreneurs can work and grow and make meaningful contributions to the economy, like paying tax, providing employment and paying wages, which will be spent on goods and services. A much better idea than allowing the rich to get richer, and forcing the poor to get poorer.