Heroes of Ukraine

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

Friday, 2 December 18:16 (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 »
 

Trump's Victory Means Both Risks and Opportunities for Ukraine

Vitaly Portnikov, a Ukrainian political expert, has evaluated the results of the U.S. presidential election and its possible impact on the situation in Ukraine.

 

 
He says that Donald Trump’s victory gives Ukraine both risks and new opportunities. In particular, the Ukrainian journalist, political observer, and blogger writes that after Donald Trump unexpectedly won the election, the entire political world was slightly shocked and uncertain how to react to this unexpected event.
Publication date: 30 November 09:23 AM

UK Prime Minister to Launch Brexit in Spring 2017

The current Prime Minister of the United Kingdom Theresa May gave her first big interview after coming into power a few months ago. During the interview, she warned the people of the United Kingdom about the likelihood of a difficult period they would have to face in the near future. She is almost convinced that the so-called Brexit, or the process of quitting the European Union is going to be economically and financially painful to the UK, its people, economy, national currency, and financial system.
 
Publication date: 29 November 01:18 PM

President-Elect Trump Sets Future Priorities

As you probably know, Donald Trump has won the U.S. presidential election 2016 and is now going to be the 45th President of the United States. Even though he is going to take office in January 2017, he already started setting future priorities as the next U.S. President.

 

 

Publication date: 23 November 10:49 AM

What to Expect in Global Economy from Trump's Victory?

Donald Trump’s victory in the presidential election used to be seen as something unlikely but this unexpected scenario finally manifested itself. Donald Trump is going to become the 45th U.S. President on January 1st, 2017.

 

 
Publication date: 18 November 06:10 AM

Brexit Planned For Early 2017, Theresa May Says

The current Prime Minister of the United Kingdom Theresa May gave her first big interview after coming into power a few months ago. During the interview, she warned the people of the United Kingdom about the likelihood of a difficult period they would have to face in the near future. She is almost convinced that the so-called Brexit, or the process of quitting the European Union is going to be economically and financially painful to the UK, its people, economy, national currency, and financial system.
 
Publication date: 17 November 04:29 AM

Brexit. Who's Next to Quit EU?

Where this is good or not, we can still see the entire political and economic structure of Europe gradually changing. More and more experts, name the countries who may well follow the United Kingdom and hold their own referendums on EU membership.
 
Publication date: 15 November 08:36 AM

Donald Trump Is 45th U.S. President

The Republican candidate Donald Trump has won the U.S. presidential election 2016 and become the 45th U.S. president. The billionaire won the election in most of the states, thereby winning it with a huge lead.

 

 
Publication date: 09 November 04:37 PM

High Court of London Bans Brexit without Parliament's Consent

For those of you who don’t know, the High court of London suspended the so-called Brexit procedure a couple of days ago. To be more specific, the UK government cannot go on with the Brexit and initiate the procedure without the British Parliament’s consent.
 
Publication date: 07 November 11:18 AM

A couple of days before the election, Trump is just 2% behind Clinton

Even though more and more experts are sure about Hillary Clinton’s victory in the forthcoming U.S. presidential election, and even bookmakers think that Hillary Clinton is the frontrunner, the results of the recent surveys show that everything is not that clear. In early October, Mrs. Clinton used to outpace Donald Trump by as much as 12%, today the difference is just 2%. The latest survey was taken on November 1st through 3rd.

Publication date: 06 November 05:29 AM

UK Will Face Hard Times Because of Brexit, Theresa May Says

The current Prime Minister of the United Kingdom Theresa May gave her first big interview after coming into power a few months ago. During the interview, she warned the people of the United Kingdom about the likelihood of a difficult period they would have to face in the near future. She is almost convinced that the so-called Brexit, or the process of quitting the European Union is going to be economically and financially painful to the UK, its people, economy, national currency, and financial system.

Publication date: 03 November 01:06 PM