Despite five years of capitalism, many corporate leaders remain wary of investing in
“The seemingly obvious explanation for foreign investors’ hesitancy,” wrote the Financial Times recently, “is that Russia is still too unstable a place to do business, teetering on the brink of political turmoil and economic crisis .” Among the many concerns cited were:
- A confiscatory tax regime-more than 150 taxes are applied with particular vigor to foreign investors.
- Difficulty enforcing commercial contracts and property rights in the courts.
- Crime and corruption.
- Hostile local Soviet-era bureaucrats, whose poor understanding of markets derails deals made at the federal level.
Six years ago Chief Executive held its first roundtable in
Writing in the Wall Street Journal, Alexander Lebed,