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Corruption in Eastern Europe

publication date: May 10, 2010
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How to differentiate between levels of corruption in different east European states? Here is the take of one healthcare investor who knows the region well.

In Poland you very rarely come across serious corruption. Yes, patients take presents or give small tips to their doctor. But this is really a gift culture, it is about being polite.

It is like tipping someone who has parked your car at a car valeting place. There is always a risk that if you don’t tip they might damage it in some way.  It is unlikely, but why take the risk?  Otherwise, within the public sector bribes are unusual.

In Romania you have a similar culture to India. Civil servants are not paid enough, so they will hold up every bit of paperwork until you pay them a small sum. It is about greasing the wheels. Do I like it? No? Could I live with it – probably.

In Bulgaria you have real corruption. You can pay people to do criminal things. In Romania, it would be hard to bribe an inspector to keep open a clinic which doesn’t reach safety standards. In Bulgaria, it would be routine. This means that in Bulgaria your competitors can and will bribe local authorities to close you down. You are in direct competition with a local mafia. Would I be happy with that?  No. That’s why I wouldn’t invest in Bulgaria. 


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