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Tips For Investors: Is Daily Beast’s Corruption Rating Really Unbiased?


 

A country’s level of corruption is one of the main factors determining its investment attractiveness. No wise investor would probably invest in the economy of a highly-corrupted country. These days, when the entire world is on the verge of falling into the abyss of another major crisis, attracting foreign investment has become a matter of life and death for numerous economies around the globe.
 
Strange as it may seem but the more critical the global economic situation is, the more ratings are published. Not so long ago Western mass media (like The Guardian, The Financial Times, The New York Times, Forbes) reported that The Daily Beast had published its own international corruption rating. In other words, we can witness another attempt to divide the world into good and bad “guys”, i.e. corrupted countries and those that are corruption-free, democratic and attractive for investors.
 

 

 

 

How important are “corruption” ratings for investors?
 
According to Eugene Olkhovsky, Masterforex-V Academy’s leading expert, it is fairly easy to understand how can such ratings affect a country’s investment attractiveness.
 
Most investors pay attention to different ratings when deciding to invest in a foreign economy. By the way, more and more experts start questioning the objectivity of such ratings. Market Leader tries to be as objective as possible in highlighting any information that can be important to investors. It was noticed that when a certain rating irritates influential countries, they initiate publication bans and numerous investigations. It is sufficient to recollect, how the EU authorities started questioning the objectivity of international rating agencies after they started downgrading the credit ratings of European countries.
 
 
According to the experts of Masterforex-V Academy, when it comes to making any international rating, it should be unbiased, with transparent methodology and distinct criteria. Otherwise, a rating can quickly turn into a weapon of information warfare.
 
The Daily Beast’s rating
 
First of all, the rating is mainly based on Corruption Perceptions Index 2011 by Transparency International (for more details, please, also read Transparency International: Corruption Perception Index 2011 - Valuable Info For Investors Or Weapons Of Manipulating Public Opinion?)
 
The rating was made by The Daily Beast (a popular US edition), which doesn’t specialize in corruption ratings. Apart from Corruption Perceptions Index 2011 by Transparency International, the Daily Beast used Freedom House’s report on the freedom of the press and the latest data provided by the World Bank.
Transparency International is the only organization that makes scientifically-based corruption reports. It has a distinct definition of what corruption is while its index is based on a number of criteria. For more information, please, visit the official website.
 
However, The Daily Beast decided to expand Transparency International’s list of criteria, thus adding political rights, social freedoms and other irrelevant criteria.
 
The question arises: What is the object of the given research? Corruption or political and social freedoms? Obviously, these are different notions. Moreover, they contradict each other. There is very little or no corruption in totalitarian countries while corruption flourishes in those countries that make first democratic steps. It seems like we have a mere profanation here (I mean The Daily beast’s rating).
 
Uzbekistan is number 1, Belarus is number 6. Why?
This is unclear. The Daily Beast’s rating reveals only the world’s 20 Most Corrupt Countries (unlike TI’s Corruption Perceptions Index).
The Daily Beast’s rating looks as follows:
1. Uzbekistan (89,6 out 100)
 2. Eritrea (87,8 out 100)
 3. Laos (87,8 out 100)
 4. Afghanistan (86,3 out 100)
 5. Equatorial Guinea (84,2 out 100)
 6. Belarus (83 out 100)
 7. Congo (82,5 out 100)
 8. Swaziland (81,3 out 100)
 9. Iran (79,1 out 100)
 10. Ethiopia (78,5 out 100)
 11. Chad (78,2 out 100)
 12. Syria (76,8 out 100)
 13. Cote d’Ivoire (76,4 out 100)
 14. Venezuela (76 out 100)
 15. Iraq (75,5 out 100)
 16. Yemen (73,9 out 100)
 17. Burundi (73,6 out 100)
 18. Angola (72,3 out 100)
 19. Cambodia (71,9 out 100)
 20. Haiti (69,9 out 100).
 
There are some major changes in comparison with TI’s Corruption Perceptions Index 2011.
 
According to Transparency International’s index, Uzbekistan was number 5. The daily beast made it the world’s most corrupted country, thus eliminating Somali (by the way, Somali wasn’t included in the rating for some strange reasons). North Korea and Turkmenistan were also eliminated from the list (they were number 2 and 6 in TI’s rating).
It is not accidental that Iran is in the same list of highly-corrupted countries, especially amid the current confrontation between Iran and the West (the Strait of Hormuz, the oil embargo, various sanctions, Iran’s controversial nuclear program.)
The most shocking an unexpected change is that Belarus suddenly rallied from number 39 (Transparency international) up to number 6 (The Daily Beast). What on earth happened in Belarus that forced The Daily Beast into making such changes?
 
 
Dmitriy Frantsevich, the head of the Belarusian Association of Traders and Investors under Masterforex-V Academy, is sure that even despite the fact that the USA and the EU keep questioning the Belarusian democracy, Belarus is not as corrupted as the Daily Beast thinks.  In fact, Belarus is less corrupted that some other states of the former USSR. Anyway, it cannot be the world’s 6th most corrupted country.
 
Corruption is a delicate issue, which needs a delicate approach. However, The Daily Beast seems to be manipulating the data taken from other competent sources to pursue some shady goals (probably some orders from above). The Daily Beast’s rating looks biased and hardly deserves investors’ attention.
 
Market Leader and Masterforex-V Academy would appreciate if you could participate in a survey. Please, visit the Academy’s forum for traders and investors and answer the following question:
 
In your opinion, Is The Daily Beast’s rating worth being trusted?

 

 

You are free to discuss this article here:   forum for traders and investors

 

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Experts on Statements Made by Russian Officials about Russian Economic Recovery

International experts have commented on the recent statements made by several Russian officials about some economic recovery in Russia. They say that the weak economic growth isn’t backed by higher standards of living in the Russian Federation.

Publication date: 23 April 02:05 AM

USA Today Names the Reasons Why the USA Is Concerned about the Situation in Ukraine

USA Today has named the reasons why the United states should be concerned about the armed conflict in the East of Ukraine.

 

Previously, US Secretary of State Rex Tillerson asked his European colleagues why American taxpayers should be concerned about the situation in Ukraine. The answer came from his French colleague, who said that the United States should be interested in a strong Europe. On top of that, there are some other reasons why the USA shouldn’t stop thinking about Ukraine.

Publication date: 21 April 12:00 PM

Trump's Plan on Syria: Russia to Stay in Syria, Asad Has to Leave

At this point, several media sources, including Associated Press, report they know the details of the offer brought by Rex Tillerson to Moscow during his official visit. Now, everyone seems to be wondering what exactly Rex Tillerson and Sergey Lavrov discussed during their meeting in Moscow.
 

 

First of all, the sources claim that the USA is ready to unite forces with Russia to destroy the ISIS once and for all. Secondly, Bashar Asad has to quit anyway. He will be even allowed to go to Russia or Iran to avoid prosecution. Thirdly, a temporary government need to be established in Syria to back stabilization and holding a democratic election in Syria. Russia can stay in Syria to back security but they shouldn’t interfere with the local politics.
Publication date: 18 April 11:34 PM

Today's Russia-US Relations Are Worse Than During Obama’s Administration

At this point, the bilateral relations between Moscow and Washington are even worse than they used to be during Obama’s administration. This is what President Putin thinks on the matter.

 

 
Even though the Russian president thinks so, he hasn’t commented on the details of this degradation in the bilateral relations between the 2 superpowers. He assumes that the level of trust between the United States and the Russian Federation has dropped, especially on the military level.
 
Publication date: 18 April 11:05 PM

Will North Korea Become Another Syria for the USA?

The latest events in Syria made many international observers change their mind regarding President Trump. The current conditions also show that getting rid of North-Korean leader Kim Jong Un may also become a major goal for President Trump.

 

 
The news that U.S. aircraft carrier Carl Vinson suddenly reversed and moved to the Western part of the Pacific Ocean in the direction of the Korean Peninsula attracted the interest of the international community. Given the 59 missiles launched to hit a Syrian airbase a couple of weeks ago, this maneuver of the aircraft carrier does raise a lot of concerns.
Publication date: 18 April 03:29 AM

OPEC's Average Oil Price Raises to $53,67

The average price of a barrel of the crude oil produced by the OPEC is reported to have gone all the way up to $53,67. This is confirmed by the cartel’s official website. This happened yesterday. At this point, the price has retraced a bit and is currently trading around $53,36/b, Market Leader reports.

Publication date: 13 April 07:54 AM

Brexit Will Split UK. Scotland’s Getting Ready for Another Referendum

The Scottish government is reported to have initiated another referendum dedicated to quitting the United Kingdom.
 

 

The whole point is, Scotland wants to stay a part of the European Union. Given the fact that being also a part of the United Kingdom, Scotland will also have to quit the EU together with other UK fellow members.
Publication date: 13 April 01:23 AM

Tillerson Brings Russia an Ultimatum on Syria

Rex Tillerson offered Vladimir Putin to betray Bashar Asad. The US Secretary of State came to Moscow with an ultimatum, experts report. At the same time, we are now witnessing an unprecedented situation. The thing is, this is the first time, a high-ranking politician representing a superpower comes to Moscow without knowing whether he is going to meet with the Russian President.

Publication date: 12 April 03:44 AM

USA Won't Make a Deal with Russia at the Expense of Ukraine, Tillerson Says

According to several Western media sources, United States Secretary of States Rex Tillerson had a phone talk with Ukrainian President Poroshenko yesterday, right in advance of his visit to Moscow.

Publication date: 11 April 09:46 PM

German Government Hopes That Moscow Reconsider His Attitude To Bashar Asad

The German government still hopes that the recent events happening in Syria will help Russia make the right decision. In particular, Berlin hopes that Moscow will stop supporting Bashar Asad in the Syrian conflict.  
 
Apparently, no one in Germany or the entire EU is surprised with the Kremlin’s hostile reaction to America’s missile assault on a Syrian airbase belonging to Asad’s troops. Moreover, it would be a surprise to see Moscow show another reaction to the USA’s decision to shell the airbase in Syria in response to the fact that Bashar Asad used chemical weapons, which led to massive deaths of civilians including children.
Publication date: 11 April 10:35 AM