Results of our studies

MOSCOW, December 25, 2007 Russian Public Opinion Research Center (VCIOM) presents information on how Russian entrepreneurs estimate the level of corruption in the relationship between business and power in our country, what means of interaction between business and governing institutions they consider to be the most effective.

The majority of entrepreneurs (56%) estimate the level of corruption in the relations between business and authorities as high. No more than 12% adhere to the opposite point of view, and 24% assume that the corruption level in this interaction may be characterized as average.

Representatives of companies working in the service, tertiary and trade industry are the most critically disposed: the average score of estimations as to the level of corruption totals 2.84 for this group of respondents (based on the scale from 1 to 7, where 1 is "minimal" and 7 "maximal"). Businessmen working in the industry and construction sector provide a more positive estimation of the situation (3.12 points out of 7).

Entrepreneurs assume that the main reasons of why corruption is so wide-spread, are as follows: state officials impel representatives of business to engage in corrupt actions, or simply stated, extortion (as 50% of businessmen identify), high efficiency of corrupt actions in comparison with the legitimate path of problem solving (39%), the fact that corruption is now deeply rooted in the "life norms" in the consciousness of both businessmen and the population as a whole (32%), and also conviction of a part of businessmen that provisions of law basically do not let one lead normal enterprise activity, and to survive a businessman is compelled to engage in corrupt interaction with the state officials (28%).

According to the businessmen, the most corrupted among governing institutions are law enforcement bodies (43% of respondents agree with that), local authorities (39%) and territorial locations of such federal departments, as tax office, fire inspection, etc. (33%). The higher the level of the governing institution is, the less wide-spread corruption is in it: Regional authorities were mentioned among the most corrupted instances noticeably less often than local authorities (20% and 39%), and federal executive authorities were referred to as the most corrupted less often than regional ones (11%). Courts were also included into the list of corrupt bodies (18%). Entrepreneurs specify that federal regulatory authorities are the most free from corruption (5%).

Small enterprises more often become participants and victims of corruption in relations with representatives of local and regional authorities. 45% of representatives of small business enterprises spoke about high level of corruption of local authorities (33% representatives of large business did that), 24% mentioned regional authorities in this context (cf.:15% among representatives of large companies did so). Large business representatives complain of local and regional authorities, but they do complain of federal regulatory authorities a little bit more often (7%, cf.: 4-5% in small and medium business).

Thus, 47% of businessmen consider legal practices of interaction with authority, such as lobbying, participation in political life of the country via elections, financing political parties, etc. to be the most effective in modern Russia. Those who prefer illegal ways are less numerous (34%). One more often gives preference to legal ways of interaction in the industry and construction sector (51% versus 29%), than in transport and communication (45% versus 40%) and, especially than services and trade (37% versus 42%).

The majority of businessmen (70%) prefer personal contacts (lobbying that does not contradict the law) among legal ways of interaction between business and authority. Only one quarter of respondents refers to participation of representatives of business in elective authorities (26%); still fewer respondents speak of participation of businessmen in the work of joint ventures (conferences, round tables, etc.) with representatives of authority and institutions of local governing, financing political parties, work in business-organizations, in structure of consulting advisory bodies (7-19%).

 The survey of 1200 Russian businessmen (owners and top-managers of private companies) was carried out in September - October 2007 in 40 constituent entities of the Russian Federation. The selection represents the enterprise community according to branch affiliation (based on three macro branches, i.e. the industry and construction; transport and communication; service and trade) and is proportional to their share in the national economy and the size of the enterprises (according to the number people employed).

The initiative all-Russia opinion poll was conducted by VCIOM in July and November 2007. 1600 respondents were interviewed in 153 population areas of 46 regions of Russia. The statistical error does not exceed 3.4%.

 

How would you estimate the general level of corruption in the relations between business and authorities in contemporary Russia? (estimation given based on the scale from 1 to 7, where 1 means minimal level, and 7 means maximal level)

 

Total respondents

Sector of Economy

Industry and construction

Transport and communication

Services and trade

Minimal

1

1

0

2

2

3

3

3

3

3

8

10

7

4

4

24

26

21

21

5

22

21

22

25

6

19

19

24

19

Maximal

15

14

11

20

Hard to say

8

6

12

6

Average score

3,03

3,12

2,99

2,84

What do you think are the main reasons why corruption is so wide-spread in the relations between business and authorities? (up to 2 responses)

State officials impel representatives of business to engage in corrupt actions, as there are many ways to make the operation of a business more complicated

50

It is easier and faster for a business to solve its problems using corrupt practices

39

Small-size corruption (presents to state officials for "solving the problem", etc.) has become such a wide-spread phenomenon, that in business as well as in the society as a whole it is now no longer considered to be a reprehensible, but rather a norm of business intercourse

32

Our provisions of law basically do not let one lead normal enterprise activity, and to survive a businessman is compelled to engage in bribery

28

Other point of view

1

Hard to say

7

Which governing institutions do you think are the most corrupted? (up to three responses)

 

Total respondents

Representatives of small business

Representatives of medium business

Representatives of large business

Law enforcement bodies

43

45

41

43

Local authorities

39

45

39

33

territorial locations of federal departments

33

32

34

33

Regional authorities

20

24

21

15

Judiciary

18

20

17

18

Federal executive authorities

11

11

10

10

Federal regulatory authorities

5

5

4

7

Other option

2

2

2

3

None

3

2

3

4

Hard to say

22

18

22

25

What ways of interaction between business and state (municipal) authorities are the most effective in modern Russia?

 

Total respondents

Sector of Economy

Industry and construction

Transport and communication

Services and trade

Legal (lobbying, elections, conferences, financing political parties, etc.)

46

51

45

37

Illegal (bribing state officials, exercising pressure with the help of criminal entities, etc.)

34

29

40

42

Hard to say

20

20

15

21

What legal ways of interaction between business and state (municipal) authorities are most often implemented in modern Russia(up to two responses)

Personal contacts with representatives of authorities and institutions of local governing (lobbying that does not contradict law)

70

Public and collective interaction with representatives of authorities and institutions of local governing: conferences, round tables, etc.

19

Participation in local elective bodies

26

Working within a constantly operating consulting advisory bodies

7

Via business associations and industrial groups

13

Financing political parties

14

Other point of view

1

Hard to say

10


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