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Mar 11, 2010

Corruption * Russia - Keeping Highways among Worst in the World, Investigators

Moscow,Russia -The Georgian Daily, by Paul Goble -March 9, 2010: -- Russia ranks 118th out of 133 countries, right alongside Mozambique and Burundi, in terms of the quality of its highways, according to the latest report of the World Economic Forum, a ranking that is the result, Russian investigators say, of the outmoded construction practices and massive corruption such practices invite... But what is still worse, according to a set of articles in the current issue of Moscow’s “New Times,” the poor quality of Russian highways is not only limiting economic growth by slowing the movement of freight and increasing its cost but also resulting in the second highest rate of highway fatalities in the world... And as if to add insult to all these injuries, the weekly magazine cites experts who say the actual size of Russia’s highway system has declined over the past 15 years, despite the government’s use of statistical manipulation to allow the powers that be to claim that there has been a slight increase instead... That too entails enormous costs to the Russian economy, and it could relatively easily be changed if Russian road builders were to adopt the standard practice, increasingly used even in China, of putting iron and steel plinths in the concrete to give them greater stability and longer life, something Russian concerns do not yet do... That would not only save money but it would save lives. According to the World Health Organization, “New Times” says, “Russia occupies the second place in the world [in highway deaths] – 25.2 per 100,000 people,” second only to Kazakhstan with 30.6 deaths per 100,000 residents... Given all the advantages of building more and better roads, the news weekly asks, why do Russian enterprises not do it? And it says that “the answer which experts gives unanimously is corruption,” a plague which “boosts the price of the construction of roads tens of times” and one bureaucrats don’t fight because they can earn more by not doing so... (Photo from englishrussia: highway holes)


* Red Tape, Corruption Could Impact Russia's Cash for Clunkers

Moscow,Russia -
Business Week - March 5, 2010: -- Dealers worry Russia's Cash for Clunkers program won't meet goals. Concerned over government red tape, corruption... Russian car sales down 56% last year... More than 1,560 dealers across country expected to participate... Russia offering 200K vouchers worth $1,677 toward purchase of Russian car... Customers must turn in car 10 years old or older; AvtoVAZ likely to benefit most... Dealers wary because they must pay owners for old vehicles... Then hope to reclaim cash from government; worry over program transparency... Experts say target audience likely to purchase inexpensive vehicles under Cash for Clunkers... "The program is about to start, but there is still no transparency in the process. The government is expected to cover towing costs, for example, but it's unclear how to get the rebate" ... Valery Sheromov, Piter-Lada dealer...

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