Financial Transparency Coalition

In America in the 1920s, during the years of prohibition, bootlegging became a pervasive and widespread problem. Bootlegging, named after the practice of concealing illicit liquor in boot tops, was the illegal traffic in liquor in violation of restrictions on sale and transportation of alcohol. As with drugs, human trafficking, or endangered species, when a government restricts the supply of a good with a demand, a black market emerges. Though there was a generous domestic supply—underground distilleries often made liquor out of corn and of course there was “medical” whiskey prescribed by doctors—many Americans got liquor from...

A decision of Swedish furniture retailer IKEA to suspend further investment in Russia because of corruption is a sign that business here is still fraught with risks for international investors. While President Dmitry Medvedev has taken a clear position on anti-corruption and introduced legislation to curb official bribery, the reality is that corruption continues on a massive scale in the economy and society. However, IKEA’s response to the corruption challenge — to reduce further investment rather than pull out altogether — suggests that the risks can be managed. International companies and governments have an important role to play in...

MOSCOW (Reuters) - A new top-level U.S.-Russia commission set up by Presidents Barack Obama and Dmitry Medvedev should help investors resolve problems such as corruption and bureaucracy which are impeding trade, a business leader said.