Ukraine Corruption Assessment
The Independent International Agency of the US recently issues its final report for 2010 about corruption in Eastern Europe. Several states were closely examined, among which the most of attention was paid to Ukraine. The ex-Soviet country was rated among the most corrupted states in the world and the first in corruption rates from Eastern Europe. The large percentage of corruption and the spoiled links among the different classes prevent the country from a modernised European development.
The gas industry is what Ukraine strongly relies upon. It not also transports gas from neighbouring Russia, but also extracts such from its natural gas fields. The country’s businesses within the sector are among the most successful fuel companies in Europe and supply some 35% of the European demand for natural gas. Mostly used in heating, business structures in the country also use technology development of heating systems. However, in order to meet their needs for constant financial expansion, these companies exercise huge influence over the political life in Ukraine.
The report by the Agency indicates that the strong businesses exercise severe control over the decision making process in the country. Just like the DNA Testing, they take samples from the legislation of the country and if foes not match their interest, they are ready to exercise power over the policy makers in the state. An example is a piece of legislation recently adopted by the Ukrainian Parliament that reduces significantly the tax burden on natural gas companies - thus their contribution to the economy would decrease and their clear income would rise with almost 6%.
And in a future where countries are united in the pursue of democracy and transparency of the decision making process, Ukraine suffers political erosion from the dominance of businesses over the political players in the country.
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