Hi pfraser107-ga,
The difficulties faced when dealing with countries with high levels of
corruption are based on a lack of trust. Mistrust begets corruption.
Corruption begets mistrust. It's an endless cycle. Every business deal
gets pushed under the table, laws are broken, bribes change hands.
Essentially there is no transparency.
Not only do you have to worry about the integrity of the company you
are dealing with, but you also can't count on the assistance of
government officials to uphold and enforce the law if your dealings go
bad.
JUDICIAL SYSTEM CORRUPTION
If the judicial system is corrupt, there will be no recourse against
someone who practices unfair or illegal business practices. Your money
may be gone. Your product may be gone, and there is nobody to complain
to. In fact you may even find that the officials designated to
enforce regulations and laws are the same people who own the company
you are trying to do business with. It is convenient for them to turn
their backs on any complaints you may have against the company or
business person.
CORRUPT BUREAUCRATS
Government officials in corrupt countries expect bribes to do even
their most basic tasks. You will need to deal with tax officials,
import/customs officials, and probably other government departments in
order to export a product to a country. In a corrupt country every one
of these officials will require a bribe of some sort at every stage of
your export process – from the acquisition of the export contract to
time your product arrives in that country and to the time it finally
reaches the hands of the company you are exporting to. No bribe, and
your product sits on the dock.
Finally, you can't always project costs for your project. There is no
way to know in advance how many people will be "charging" you bribes
and how much they will charge.
EXAMPLES –
"Chinese officials at the Seoul meeting disclosed that more than
500,000 cases of bribery and corruption have been investigated over
the past decade. Presentations given by two top Chinese prosecution
department officials shed new light on the extent of the corruption
crisis that the ruling Communist Party has admitted corruption is a
threat to its rule."
"A pay-for-favors system is endemic across Korea in areas ranging from
politics, school teaching and journalism. Under this system, white
envelopes containing money are dispersed in order to get preferential
treatment."
CORRUPTION UNDER THE SPOTLIGHT
http://www.atimes.com/reports/BL13Ai01.html
----------------------
"Despite a number of structural changes and recent strong economic
growth, Armenia is failing to attract significant foreign direct
investment. Analysts say an insufficient legal framework and
corruption are the main reasons Armenia continues to been seen as a
risky market."
LACK OF STRONG LEGAL FRAMEWORK, CORRUPTION HINDER FOREIGN INVESTMENT
IN ARMENIA
http://www.eurasianet.org/departments/business/articles/eav011603.shtml
--------------------
"Corruption of all kinds is pervasive in most of the former
Soviet-bloc countries. …- Russia, the biggest of the former communist
countries, is also the one with the largest scope for corrupt
activities. …
…Swiss authorities have charged with corruption a top official of
former President Boris Yeltsin. The official is said to have received
huge bribes for awarding lucrative contracts to refurbish the Kremlin
and other state property.
…Formerly communist autocratic governments in Central Asia are
similarly known for their extensive corruption. The names of top
Kazakh officials, including the president, have been linked to huge
bribes for the right to participate in the country's oil business."
EAST: CORRUPTION FLOURISHES IN FORMER COMMUNIST COUNTRIES
http://www.rferl.org/nca/features/2000/08/F.RU.000830130223.html
--------------------
WHO IS FIGHTING CORRUPTION WORLDWIDE?
TRANSPARENCY INTERNATIONAL
http://www.transparency.org/index.html
-----------------------
Hope that helps you!
Thanks for your question. If you need any further examples, use the
following keywords in your Google search –
Export corruption country
Regards,
-K~ |
