Vladimir Putin may be expecting a return to the status quo as he takes up his third presidential term in Russia, where the system has for years benefitted the ruling elite through a system of bribes and corrupt practices. But the country’s budding entrepreneurs appear to have other ideas. Until Russia is able to give them confidence that their money is safe in its hands, investors are expected to step up the fast-growing exodus of their money – and themselves – out of the country.

THE AVERAGE bribe paid in Russia increased almost fourfold in 2011, according to a recent report from the Russian Interior Ministry.

The finding is b...

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Professor Stefan Hedlund
The difference today is that flagrant corruption among the country’s ruling elite has become a source of political discontent which could threaten the economy
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