Tips For Investors: Is Daily Beast’s Corruption Rating Really Unbiased?
Wed, 29 Feb 2012 07:58:00 +0400
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 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).
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?
Russia Captured the Crimea Because of Obama's Indecisiveness, Trump Says
Donald Trump keeps on making Russia unpleasantly surprised. If a couple of months ago they used to welcome Trump’s victory and hope to make friends with the USA, now they start thinking that maybe Hillary Clinton could have become a better option for Russia as the U.S. President.
According to the Chair of the Federal Reserve, it would be unwise to keep on delaying interest rate hikes. The other day, Janet Yellen told the Board of Directors of the Federal Reserve that they might consider another interest rate hike during the forthcoming FOMC meeting.
The Guardian Questions Relations Between Trump and Putin
According to a number of political observers, including those working for The Guardian, the relation between the USA and Russia has been begging many questions ever since Donald Trump moved to the White House.
New Secretary of the Treasury Says No to Canceling Sanctions against Russia
Even despite the fact that Donald trump unexpectedly become the 45th President of the United States, and he seems to be more loyal to Russia than any U.S. leader over the last couple of decades, Russia has still been failing to find a common language with the USA.
Donald Trump started his presidency with unpopular decisions. Some of his policies are not welcomed by politicians from both parties, not to mention mass media, secret services and millions of U.S. citizens. Maybe Putin was hoping that Trump would start helping Russia implementing its imperial ambitions despite the public discontent in the USA. But those hopes now seem to be broken. The sanctions will stay effective until Russia gives the Crimea back to Ukraine. That’s the standpoint put forward by Trump’s administration.
The dialog between Vladimir Putin and Donald Trump is following an unexpected scenario. It’s unexpected for Moscow. The Kremlin seems to have lost their key “trump” card in the talks with Washington.
According to some military experts, even the most unbiased Russian media ignored a sensational statement published by Reuters. To be more specific, Reuters claimed that during the recent phone call to Washington, Putin told Trump that he was ready to discuss the possibility of extending the agreement to cut nuclear arms. The agreement was signed in 2010 in Prague and will expire in 2020.
Trump Wants Big Deal with Russia. What May Come out of It?
It’s seems like Donald Trump doesn’t mind creating some kind of an alliance with Vladimir Putin. Is so, can he succeed or will he become another U.S. president fooled by Putin. This is the question a number of international experts are trying to answer.
For now, the details of the plan are vague. The current ambiguity existing among the representatives of Trump’s administration hints at this fact. Even when the USA's Permanent Representative to the United Nations demanded for the condemnation of Russia’s aggression in Ukraine, Donald Trump seemed to still have some hope for making friends with Putin. At the same time, he wouldn’t dare say something like ‘the USA is as blood-thirsty as Russia’.
The House of Commons of the British Parliament decided that Prime Minister Theresa May should fulfil the people’s will expressed during the Brexit referendum in summer 2016 and launch the Brexit procedure to quit the European Union. This means that the British government is allowed to start the negotiation with Brussels over the terms and conditions quitting the European Union for good.
Senate Prepares a Draft Law Forbidding to Cancel Anti-Russian Sanctions
Several members of the U.S. Senate led by ben Cardin and Lindsey Gram prepared a draft law designed so as to make the White House provide the Congress with a detailed explanation if at some point in the future the U.S. Presidents decided to cancel the sanctions imposed on Russia. On top of that, 120 days after the explanation is provided, the Congress will decide whether to support this initiative.
Putin's Chances to Improve Relations with Trump Are Close to Zero, Experts Say
Some experts say that Putin has almost zero chances to reach mutual understanding with Trump. First of all, they remind us that over the first 10 days of his presidency, Donald Trump managed to create as much uncertainty around US-Russia relations that as no other president has ever created even within the first 100 days of their presidency.