61.2 SOVEREIGN DEMOCRACY
61.3 STATE-OWNED ENTERPRISES
61.4 WORLD BANK GOVERNANCE METRICS
61.5 CURRENT STATE OF CORPORATE GOVERNANCE
61.6 EFFORTS TO IMPROVE CORPORATE GOVERNANCE
61.7 CONCLUSION: THE BUSINESS CASE FOR IMPROVED CORPORATE GOVERNANCE
The image of Russia around corporate governance is one of excitement on the one hand as the investors enjoy a booming market, and concern on the other hand as the government uses strong-arm tactics against dissidents, and its energy resources as a political weapon. One constituency has a strikingly positive take on Russia and its president, Vladimir Putin. Russia's stock market has enjoyed a major rally over the seven years of Putin's administration. In 2000 publicly traded stocks were valued at $74 billion. They now exceed $1 trillion in value. The Russian Trading System (RTS) Stock Exchange index has risen 71 percent in 2006 alone, and averaged over 50 percent growth over the past four years.1
The critics of Putin may concede that Russia has made major progress in bringing capitalism to the former Soviet Union, but challenge his methods. Russia has enjoyed political and economic stability under Putin. A major criticism to his capitalism advancement is the creation of state-run enterprises, which we discuss later in the chapter. Oil is the primary reason for the economic stability, with Russia as the world's largest oil exporter, ...