MOSCOW // Ilya Khandrikov, a Moscow businessman who runs a clothing factory, says government inspectors paid him a visit recently and informed him that his factory was in violation of several statutes on working conditions.
"Dust and noise levels, things of that sort," said Mr Khandrikov, who splits his time as head of a non-governmental organisation aimed at defending the rights of small businesses.
The inspectors offered him a contract to sign with a consulting company that would assist in bringing his company in line with the law - to the tune of a thinly disguised bribe of US$350,000 (Dh1.3 billion).
"And that was just for the consulting fee," Mr Khandrikov said. "There might have been additional fees."
But unlike many Russian small businessmen, Mr Khandrikov said he had a guiding principle when it came to dealing with bureaucrats: "If you give one bribe, it becomes a habit. And they will visit you again and again."
The level of corruption is soaring in Russia, which ranked 147th - alongside Syria, Kenya and Bangladesh - in an annual survey, released last week by the international corruption watchdog Transparency International.
Russian citizens regularly pay bribes for everything from avoiding traffic tickets to getting quality medical care to securing a spot in university. But bribe-hungry inspectors "making life a nightmare" for small and medium-sized businesses, as Dmitry Medvedev, the Russian president, described the practice, have been the target of the government's latest pledge to cut down on graft.
After being elected in March, Mr Medvedev promised to tackle corruption, saying it was holding back the economy and weakening the state. Two weeks ago, Russia's lower house of parliament passed a draft law that would slash the number of government inspections faced by businesses and require law enforcement officials to obtain authorisation from tax authorities before conducting tax inspections.
Mr Medvedev has denounced what he calls "legal nihilism" that permeates Russian society, and an anticorruption committee he created is to submit by November draft legislation aimed at battling systemic graft.
Many in Russia, however, are sceptical about the government's ability to rein in corruption.
According to a nationwide poll conducted earlier this month by the Russian state pollster VTsIOM, 74 per cent of respondents said corruption in Russia was either "high" or "very high", while 75 per cent said that the state's attempts to combat graft had brought either no improvement or "negligible" results.
Kirill Kabanov, head of the National Anticorruption Committee, a non-governmental organisation, said while the recent legislation passed in the Russian parliament was a step in the right direction, it was ultimately up to society to make a difference.
"Laws are good, and they are necessary," Mr Kabanov said. "But just as important is how they are executed and with what oversight. This is the job of society, because corruption is a danger to everyone."
Most Russians, Mr Kabanov said, "either don't know or do not believe that they can influence the situation in any way.
"In such circumstances, Medvedev can wish all he wants for change. It won't work."
Mr Kabanov's organisation this month issued a joint report estimating the size of bribes required to carry out a variety of attacks on businesses in so-called "raider attacks", an umbrella term used in Russia to describe any illegal tactic for taking over someone else's company.
Getting law enforcement authorities to open a criminal investigation against a senior executive of a company, for example, will cost $30,000 in bribe money to the relevant official, according to the report, which surveyed more than 100 Russian lawyers and businesses.
Mr Khandrikov, the clothing factory owner, is sceptical about the Russian government's high-profile anti-corruption campaigns. "Talking about doing something and actually doing something are two very different things," he said.
When he was offered to pay the consulting company $350,000 to eliminate the violations at his company, Mr Khandrikov said he went straight to city officials and showed them the contract.
"They all of a sudden became big friends of small business," he said.
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This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
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5 of the most-popular Airbnb locations in Dubai
Bobby Grudziecki, chief operating officer of Frank Porter, identifies the five most popular areas in Dubai for those looking to make the most out of their properties and the rates owners can secure:
• Dubai Marina
The Marina and Jumeirah Beach Residence are popular locations, says Mr Grudziecki, due to their closeness to the beach, restaurants and hotels.
Frank Porter’s average Airbnb rent:
One bedroom: Dh482 to Dh739
Two bedroom: Dh627 to Dh960
Three bedroom: Dh721 to Dh1,104
• Downtown
Within walking distance of the Dubai Mall, Burj Khalifa and the famous fountains, this location combines business and leisure. “Sure it’s for tourists,” says Mr Grudziecki. “Though Downtown [still caters to business people] because it’s close to Dubai International Financial Centre."
Frank Porter’s average Airbnb rent:
One bedroom: Dh497 to Dh772
Two bedroom: Dh646 to Dh1,003
Three bedroom: Dh743 to Dh1,154
• City Walk
The rising star of the Dubai property market, this area is lined with pristine sidewalks, boutiques and cafes and close to the new entertainment venue Coca Cola Arena. “Downtown and Marina are pretty much the same prices,” Mr Grudziecki says, “but City Walk is higher.”
Frank Porter’s average Airbnb rent:
One bedroom: Dh524 to Dh809
Two bedroom: Dh682 to Dh1,052
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• Jumeirah Lake Towers
Dubai Marina’s little brother JLT resides on the other side of Sheikh Zayed road but is still close enough to beachside outlets and attractions. The big selling point for Airbnb renters, however, is that “it’s cheaper than Dubai Marina”, Mr Grudziecki says.
Frank Porter’s average Airbnb rent:
One bedroom: Dh422 to Dh629
Two bedroom: Dh549 to Dh818
Three bedroom: Dh631 to Dh941
• Palm Jumeirah
Palm Jumeirah's proximity to luxury resorts is attractive, especially for big families, says Mr Grudziecki, as Airbnb renters can secure competitive rates on one of the world’s most famous tourist destinations.
Frank Porter’s average Airbnb rent:
One bedroom: Dh503 to Dh770
Two bedroom: Dh654 to Dh1,002
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Stuck in a job without a pay rise? Here's what to do
Chris Greaves, the managing director of Hays Gulf Region, says those without a pay rise for an extended period must start asking questions – both of themselves and their employer.
“First, are they happy with that or do they want more?” he says. “Job-seeking is a time-consuming, frustrating and long-winded affair so are they prepared to put themselves through that rigmarole? Before they consider that, they must ask their employer what is happening.”
Most employees bring up pay rise queries at their annual performance appraisal and find out what the company has in store for them from a career perspective.
Those with no formal appraisal system, Mr Greaves says, should ask HR or their line manager for an assessment.
“You want to find out how they value your contribution and where your job could go,” he says. “You’ve got to be brave enough to ask some questions and if you don’t like the answers then you have to develop a strategy or change jobs if you are prepared to go through the job-seeking process.”
For those that do reach the salary negotiation with their current employer, Mr Greaves says there is no point in asking for less than 5 per cent.
“However, this can only really have any chance of success if you can identify where you add value to the business (preferably you can put a monetary value on it), or you can point to a sustained contribution above the call of duty or to other achievements you think your employer will value.”
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