Heroes of Ukraine

«Market Leader» - news and previews making you rich.

Friday, 28 October 20:31 (GMT -05:00)

Business And Politics News

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


Add to blog
Got a question? – Ask it here »

EU and Eurozone Won’t See Disintegrating Shortly, Roubini Says

After the British referendum where the people voted for quitting the European Union, the market showed a rater reserved reaction to the news, weaker than expected. This is what Nouriel Roubini, an American economist and professor says. He teaches at New York University's Stern School of Business and is the chairman of Roubini Global Economics, an economic consultancy firm.
Publication date: 25 October 04:47 PM

Freedom House Says Crimean Elections Are Illegitimate

Freedom House, a world-famous international organization defending human rights around the globe is reported to have condemned the recent parliamentary election in the Crimea, which is now a part of the Russian Federation, but Ukraine and the Western world still see the Crimea as a part of Ukraine. The organization says that the elections were illegitimate anyway since the territorial dispute is still underway.
Publication date: 18 October 02:26 PM

Global Economy Will Stay Volatile Until Bexit Is Over

As you probably know, the decision made by the British people to quit the European Union, which is now known as the Brexit, added uncertainty to the global economy as international financial markets went more volatile.


Still, G20 leaders still hope that the United Kingdom is going to retain close economic and political ties with the European Union. In the meantime, more and more representatives of the international expert community, including the UK’s financial authorities, assume that this uncertainty is likely to be seen as long as the Brexit procedure is still underway. This means that the existing volatility seen in the global economy and financial markets will disappear only when the Brexit is completed.
Publication date: 16 October 04:26 PM

Russian-Saudi Oil Agreement Pushed Oil Prices Higher

For those of you who don't know, Russia and Saudi Arabia signed an agreement on cooperating in the global market of crude oil. The news pushed oil prices higher. To be more specific, Brent oil gained 4% instantly after the news. Still, the rally was strong but short.
Publication date: 03 October 01:54 PM

Will Russia Join OPEC Agreement on Oil Production Cuts?

After OPEC unexpectedly decided to cut their oil production during the unofficial summit in Algeria on September 29,2016, the international community started asking one and the same question, which is whether Russia is actually going to join the agreement. The thing is that Russia was one of the first advocates of this idea and urged every energy nation out there to make this crucial step for their mutual benefit based on higher oil prices and bigger profits from oil exports.
Publication date: 30 September 06:55 PM

Nassim Taleb: Being Successful is Being Unpredictable

The world is full of unpredictable events happening from time to time. Nobody expected the disintegration of the USSR or the 9/11 terrorist attacks. World War I broke out in an instance and came as a shock to the humanity, doing unprecedented damage to the entire world.
Publication date: 30 September 05:13 AM

Will Russia, Iran, and Saudi Arabia Agree on Oil Production?

Today, Algeria is hosting an informal OPEC summit. The used to say that Russia may well join the cartel during this informal summit to discuss the current situation in the global market of crude oil and work out an efficient way to change it for the better. Still, now it is reported that Russia is not going to be participating in the summit since this is a summit for OPEC member only.
Publication date: 28 September 05:04 PM

UK-EU Relations After Brexit

As you probably know, the United Kingdom is going to quit the European Union. At the same time, the UK definitely wants to retain its economic ties with the EU after the so-called Brexit, Masterforex-V Academy experts say. When it comes to economic relations with the European Union, Great Britain can follow the example of Norway, Switzerland, Turkey, or the WTO.
Publication date: 16 September 05:15 AM

How Turkey Benefits From Reconciliation With Russia In Terms Of Geopolitics

After Putin and Erdogan made steps toward reconciling Russian and Turkey, the Russian folks changed their mind as well. Not so long ago, you could see most Russians being hostile to everything that comes from Turkey. Now, this is no longer the case. At least it seems so.



Publication date: 31 August 10:32 AM

Brexit Threatens UK With Disintegration

Some experts say that the so-called Brexit may eventually result in the disintegration of the United Kingdom. In particular, Scotland has already made a call for another referendum on independence from the United Kingdom.
Publication date: 31 August 06:42 AM