20 November 2009

Russia Corrupt and Uninsurable

Over-reliance on one source of income is a curse to any nation, and to Russia in particular. Countries with vast energy resources -- such as Russia -- tend to be corrupt, with power and wealth concentrated at the center. As long as the criminals at the top of the regime are comfortable and wealthy, they do not care that the bulk of the country and its people are impoverished and dying.
"Economic crime is and will remain a very serious risk for Russian organizations," its report said. "The economic downturn is changing the nature and scale of the fraud and integrity risks that organizations face. The speed of change is such that opportunities to commit fraud will be prevalent."

"More people will feel real pressure to 'cross the line' or look the other way while others do so," it said. _CNBC
Russia desperately needs outside investment and expertise. Outside help is not only needed to expand Russia's economy beyond the confines of oil and gas. Russia is badly in need of outside help just to keep up with maintenance and new technology in its core oil and gas industry itself. But outside companies are being stung by Russian crime and corruption -- and international insurance companies are bailing out of the high-risk Russian economy.
The [insurance] industry is particularly concerned over risks in Russia, where extractive projects have become almost uninsurable.

BP (BP.L) faced a difficult battle for control of its local joint-venture TNK-BP last year, but problems have not been limited to the oil sector and Norwegian telecom Telenor faced a similar battle this year over its stake in mobile operator Vimpelcom. _Reuters
The rot goes to the center of Russian government and power. But the manifestations of the rot go out to all areas of Russia, from Europe to the Pacific. Drug addiction, alcoholism, HIV/AIDS, Tuberculosis, suicide -- all are Russian diseases growing in severity. A combination of tragically high death rates and low birth rates among ethnic Russians, guarantees that Mother Russia will soon be occupied by non-Russians, who die more slowly and continue to breed.

Denial of Russia's problems only allows them to grow worse. Making excuses for Russia's bad behaviour in its death throes will only make the ending scenes more violent and destructive.


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“During times of universal deceit, telling the truth becomes a revolutionary act” _George Orwell

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