Is the Dream of Global Business Empires Surrendering to Police State Control Coming True?

Is the Dream of Global Business Empires Surrendering to Police State Control Coming True?

What is the first thing that comes to mind when you think about the United States? For some, it’s the vibrant energy of New York City. For others, it’s the quiet, slow-paced (well, not always) life on a ranch. But regardless of our individual associations or perspectives, we must admit that the U.S. is indeed a great country.

Some believe that the U.S. owes its international image and influence to Hollywood, while others argue that it’s American music that has played a crucial role in the spread of English as the global language of communication. Personally, I see the U.S. primarily as a land of freedom—especially when it comes to business. It is home to the world’s top business schools, and nearly every commercially successful company is connected to the U.S. in some way. The key difference between the U.S. and Russia—the country where I grew up—is the freedom of business. In the U.S., business is as free as it can possibly be.

The situation in Russia, however, is starkly different. In 2003, just three years after Mr. Putin came to power, a high-profile criminal case went to court: a prominent businessman was arrested for tax evasion, despite it being widely known that the charges were fabricated. He was ultimately sentenced to prison, but his real "crime" was speaking to Mr. Putin in a way appropriate for a citizen addressing the president of a democratic country—not the way a servant speaks to a lord. This businessman neither organized protests nor demanded the president's resignation. He simply presented a previously authorized report on corruption during a televised meeting between Putin and the country’s major businessmen. The report and the subsequent discussion deeply displeased Mr. Putin.

It’s important to clarify that corruption is an intrinsic part of everyday life for Russian office-holders. Its basic principle is manus manum lavat (“one hand washes the other”): every security official must be involved in corrupt schemes to such an extent that reporting on a ‘colleague’ becomes impossible. In 2003, this translated into a situation in which all businessmen—whether small-scale entrepreneurs or billionaires—could not manage a business without participating in corruption. Not because they were eager to throw away hard-earned money, but because the system itself had been designed that way by the state. Either you paid bribes to keep your business afloat, or you had no business at all—but would still be forced to pay bribes, perhaps to a doctor instead. In a state built on corruption, it permeates every level of life.

Moreover, this entire corrupt system prevented Russian businesses from entering international markets. It was extremely difficult to explain how things worked to foreign investors—let alone meet ISO standards. The businessman who presented the report was trying to improve the conditions for doing business in the country, among other goals. His arrest sent a clear signal to society: stay silent and keep your head down while the government continues its quiet theft.

In the 21 years since then, Mr. P has nearly transformed the country into a totalitarian police state. Today, it’s hard to find a major business that isn’t controlled by the modern-day KGB. During this time, he also became one of the richest people in the world—thanks to systemic corruption. He uses this wealth to fund his allies around the globe. In his vision, this same system—a police state controlling business—should exist in every country.

Is this truly the future the U.S. wants?