Archive for the 'corruption' Category

Corruption is still a big problem in most Eastern European countries, even after they joined the EU. The biggest failure, on the EU side, was to take for granted that once these countries adopt the EU legislation, their judicial systems will function exactly like in Western Europe. But in a Communist regime, the judiciary is a mere political tool. And by keeping all those judges and prosecutors who were trained in Communist times and have a distorted view of the rule of law, these countries cannot function properly.

A survey made amongst Romanian judges showed that most of them don’t consider corruption as being a serious crime. "It’s not like you kill someone. And how can I sentence someone to many years of prison for corruption, when I have to bribe myself nurses and doctors if I go to the hospital", said a judge as quoted by a German expert who ran the survey.

The Economist writes a sharp analysis on how the crackdown on corruption in Eastern Europe has eroded after the countries joined the EU.

For corrupt officials in central and eastern Europe, life has seldom been better. Joining the European Union has produced temptingly large puddles of public money to steal. And the region’s anti-corruption outfits are proving toothless, sidelined or simply embattled.

The biggest problems are in Romania and Bulgaria, the EU’s two newest members, whose apparent inability (or disinclination) to deal with high-level corruption has led to increasingly acerbic public warnings from Brussels. But other countries have done badly too.

Barely three months after it joined the EU in 2007, the Romanian government fired Monica Macovei, a doughty justice minister who had attacked corruption head-on. Her successor tried to fire the anti-corruption prosecutor for investigating his political sponsors. The incumbent is a former lawyer for Russia’s Gazprom. Procedural snags have held up all high-level corruption cases. Investigation of former ministers now requires parliamentary approval, sending every case back to square one. Although Romania comes out lowest in the EU in the rankings by Transparency International, a lobby group, the government seems determined to attack its critics rather than corruption.

(…)

As its economic competitiveness erodes, eastern Europe can ill afford bad government. Voters are generally disillusioned with post-communist politics. Yet from the Baltic to the Balkans, even politicians facing the most startling accusations of corruption seem not to suffer at the polls. A bit like Italy, really.

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The New European

After working as a translator in a U.S. hospital for the past two years, I have seen and experienced many things. Among the most disturbing is the outright plundering of the system by those who the system was never designed to cover, namely illegal immigrants.

Julia

Julia is an expectant mother who has been in the U.S. for less than 4 months. She has received no prenatal care and shows up at the Emergency Room of her local hospital here in the U.S. when she begins to have contractions. She arrives with no identification and a vague idea of her street address here in the U.S.

Her baby girl is subsequently delivered at the hospital and, during the three days following the birth of their daughter, both Julia and her daughter receive around-the-clock medical care in the Family Birthing Center of the hospital. A translator is contacted by the hospital and is provided to Julia and the father of the little girl because they cannot speak English.

Amongst other things, the little girl receives an application for a social security number & birth certificate, a variety of injections, and her first Hepatitis B vaccine. The mother is offered a free car seat - courtesy of the hospital - and a free smoke detector for use in the house because of the family’s perceived low-income status.

On the third day, a woman from the hospital arrives and, with the help of the hospital’s translator, files the necessary paperwork so that the mother and father can successfully enroll their baby on Medicaid. After the completion of the necessary paperwork, a nurse escorts the new mother & father and their baby out the front door of the hospital to their well-appointed Pontiac minivan.

A hospital bill that has reached upwards of $6,000 is never mentioned by anyone at the hospital to the mother or father. Ironically, the nurse who has escorted the new family out the front door and helped deliver the baby is pregnant herself. She pays for health insurance on a monthly basis and will later have to pay a $600 deductible in order to deliver her baby in the same facility as Julia.

This is just the first of a series of tremendous expenditures that will be absorbed into the great federal and state government largesse known as uninsured health care. Upon enrolling the baby on Medicaid, Julia’s baby will be eligible for baby formula, diapers, $15 well child check-ups until the baby is 4 years old - of which there are 8 check-ups with a highly-trained Pediatrician- and at least 10 different vaccinations, several of which are being rationed because of a nationwide shortage. All of this will be paid for by a combination of state and federal tax dollars. Head Start programs at the local elementary school are also paid for. All of this is provided to the baby because the baby is an American citizen by virtue of being born on American soil, regardless of the mother’s immigration status.

Ramon

Ramon is a day laborer at a local greenhouse. He has arrived in the U.S. on a temporary basis approximately two months ago to work at a greenhouse during the seasonal harvest. Ramon was diagnosted with diabetes two years ago in Mexico. He has never given himself an insulin shot and admits he has no idea how to check the level of sugar in his blood. He is 51.

After working in the greenhouse for three weeks, Ramon slips and sprains his ankle. He does little to treat his ankle and later arrives at the Emergency Room at his local hospital with a swolen right foot that is made even worse because of his diabetes. After examining his right foot, the doctor decides that the pinkie toe on said foot needs to be removed. This is a fairly complex surgery with a high risk of infection because of the size of the remaining open wound that will be left after the surgery has been completed. As such, 8 hours after belatedly walking into the Emergency Room, Ramon has had his right pinkie toe removed and is resting on the 5th floor of the hospital. He will remain in the hospital for a total of 6 days as the wound is cared for and cleaned by a variety of nurses and physical therapists.

On the 6th day, Ramon is transferred to a hospital-managed outpatient facility. He has a hand-held device called a wound-vac that is attached to his foot so that the 2 inch surgical wound along the side of his right foot will close faster. This wound-vac requires fairly constant medical attention and was the reason why Ramon was moved to the $350 per night outpatient facility rather than sent home with instructions on how to use the wound-vac himself.

While in the outpatient facility, the doctor checks daily on Ramon’s foot in order to assess whether the wound-vac has successfully closed the wound. Once closed, Ramon will be transported back to the hospital via ambulance where he will once again undergoe surgery. A portion of the skin on his hip will be taken in order to be used as a skin graph on his right foot. The total time Ramon will be in the hospital or at an outpatient facility is approximately 21 days.

By law, a hospital-contracted interpreter is present to explain every step of this process to Ramon. During the many conversations the interpreter has with Ramon over this 21 day period, it becomes clear that Ramon has engaged in absolutely no preventative care for the past two years subsequent to him being diagnosed with diabetes. Ramon admits to regularly drinking 6 to 8 beers several nights a week while in Mexico. The only reason Ramon stops drinking is when his body tingles all over. This is how Ramon crudely checks the level of sugar in his blood. This is how Ramon knows it is time to stop drinking for the night.

After Ramon’s second surgery to graph the skin from his hip over the wound in his foot, Ramon is released from the hospital with a bill that is over $14,000. He is given a variety of insulin for his diabeties and testing supplies and told to schedule a follow-up appointment with a physical therapist where, by law, a hospital-contracted translator will also be present. He is also directed to an uninsured discount clinic that is a satelite office of the hospital where he will receive a vision test as a result of his diabetes coupled with tri-monthly doctor consultations about his diabetes.

Ramon has no assets to speak of inside of the United States. He crossed the border with his brother and approximately 30 other Mexicans from central Mexico to specifically work at the aforementioned greenhouse.

Upon being released from the hospital, Ramon has two options. One option for Ramon is to return to Mexico early where he is a proud grandfather and where his large family - he is one of 11 brothers and sisters - are available to care for him. The second option is to remain at the greenhouse and continue to try and work while attending hospital-arrainged physical therapy sessions for his healing foot. The greenhouse’s need for Ramon’s labor lasts another 5 months, at which point Ramon plans to return to Mexico anyway to be with his family and enjoy the warmer weather.

As for Ramon’s $14,000 bill, a hospital administrator who arrives one day in Ramon’s room to quiz him about his U.S.-based assets admits that the hospital will likely collect absolutely nothing from Ramon. Ramon is blissfully unaware of this fact as the hospital makes virtually no attempt to collect funds from someone they deem unable to pay such a bill. Apparently, the hospital has dealt with the Ramon’s of the world before and has decided that the collection of such a debt is a loser’s game.

Whlie Ramon and Julia entered the same hospital for different reasons, the outcome of each person’s treatment is strikingly similar. Like Julia, Ramon will be escorted out of the hospital by one his nurses at the end of his 16-day stay in the hospital. Like Julia, he will have a bill that numbers in the thousands which he won’t be held responsible for. Like Julia, the hospital is left holding the bag as they are required to treat the Ramons and Julias of the world who need urgent medical care even if that person can’t pay their bill. Like Julia, Ramon can return to Mexico whenever he would like and leave any semblance of responsibility behind him in El Norte.

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Global American

In Romania, EU's newest member state, if you want to get a public tender fixed, the minister might ask you for some euros. Also some sausages and plum brandy, writes The Economist.

Just weeks ago, the agriculture minister Decebal Traian Remes was shown on public television in what appeared to be the act of taking an envelope with 15.000 euros. His middleman, also a former minister, was then videotaped going to Remes' house with boxes of sausages and gallons of plum brandy. The tape included phone recordings in which Remes was asking the bribe-giver, a local businessman, about the exact registration numbers of the tenders he wanted to secure for himself.

Within two days of the tape being shown, Remes was asked by the Premier to resign. The moment couldn't have been worse for Romania:  The European Commission is threatening to cut 25% of the agricultural subsidies worth 100 million euros if the Government doesn't set up a functioning and transparent agency for distributing said funds to Romanian peasants.

As for the fate of Mr. Remes and a handful of other former and present ministers suspected of corruption (including the current Justice Minister!), things look brighter than could be reasonably expected in any other European country.  An “emergency ordinance” was recently passed by the Romanian government; an extraordinary legal procedure usually concerning urgent matters that enables the government to enact decrees without the usual parliamentary procedures.  As a result of this ordinance, the government dissolved the commission which conveniently happened to be in the process of lifting the ministers' immunity, which would have enabled prosecutors to actually investigate all of this purported corruption. The new commission is unlikely to resume activity this year, since there are ongoing appeals against the ordinance.

These delays to corruption trials are, unfortunately, not the first or only instance of such "politicking". Since Romania became an EU member on January 1st,  the political class has been  working on all levels to restore the privileges and impunity mechanisms it lost during the accession process. Changing the rules during the game seems to be the motto of the current administration. All sorts of legal exceptions, new amendments and bills are meant to undo what the former Justice minister Monica Macovei, broadly appreciated as a true reformist, succeeded in instituting. Unfortunately for Romania, Macovei was replaced during a government reshuffle in April.

 
Public perception of corruption is high: according to the last Transparency International corruption index, Romania is perceived as the most corrupt country within the EU.

The current Justice Minister Tudor Chiuariu, a former lawyer of a prominent regional party-boss of the governing Liberal Party, blames it on the prosecutors. In Chiuariu's eyes, it's not the MPs who change the laws during the game who are to blame, not the Government who sometimes rules by decree, nor the judges who are by large majority inherited from the Communist era, when they served as a mere branch of the political police. No, in Justice Minister Chiuariu's eyes, this latest bout of corruption is the fault of the prosecutors!  Unlike in East Germany, when upon reunification, all judges were evaluated and further employed only if it was certain that they would not act upon political commands, in Romania judges were automatically “recycled” by the post-Communists.

For Chiuariu, the activities of the Anticorruption Department, although praised in the EU Commission’s reports, are just “political commands”. Just days after his appointment earlier this spring, Chiuariu asked for one of the top prosecutors to be replaced – the head of the department dealing with top-level politicians. Even after the Superior Council of Magistrates audited the activity of that prosecutor and found that there are no grounds for him to be dismissed, Chiuariu persisted and asked the president to replace him, only to be refused again. If Chiuariu's (and Romania's) history is any indication, Chiuariu's next step will probably be a draft amendment in order to limit the presidential powers in this regard so that Chiuariu can expel those prosecutors he deems dangerous.

On the EU side, the Commission has some leverage left – the so-called “EU Cooperation & Verification Mechanism” for Justice and Home Affairs - is a unique post-accession monitoring program for Romania and Bulgaria that was designed & instituted in order to ensure the proper functioning of the rule of law and help these two country's fight against corruption. If the progress is unsatisfactory, the Commission can apply a safeguard clause that would block any Romanian verdicts from being legally binding in the EU.

If the Romanian justice system continues its current trend, the EU might very soon have to deal with a failure on the scale of the failure of the EU Constitution in 2005:  Romania would become the first EU member state with a dysfunctional rule of law and unchecked corruption. Such a scenario would be a disaster for both the EU & Romania. 

 This should at least be a lesson for the next EU candidates in line: No EU accession without a real reform of the political class and judicial system.

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The New European

If anyone needs further proof of the fallacy of America's "War on Drugs", a study published on Monday by Jon Gettman, who has a Ph.D. in public policy from George Mason University and publishes extensively on the pot business, finds that marijuana in America is a $113 billion annual business that costs taxpayers $41.8 billion in enforcement costs and lost tax revenues annually.  $41 billion dollars would go a long way (even for America's fiscal basket case of a federal government).  Plus, it would make sense in "the land of the free", would it not?

 

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Global American

Gary Kasparov, the man who was a world chess champion for 15 years in a row is trying now to checkmate Vladimir Putin in politics. Wishful thinking? A mirage of the West projected onto Russia? Maybe. Leader of the opposition movement "The Other Russia", Mr. Kasparov admits quite sincerely: "We are not trying to win the elections, we are trying to have elections!"

A guest of honor at the European Ideas Network in Warsaw last week, Mr. Kasparov made some worrying statements:

Putin doesn't run a country, he runs a corporation. He is the ugliest mixture of Karl Marx and Adam Smith. He is not interested in restoring Russia's influence, he's just interested in Gazprom's and Rosneft's influence. Actually, Putin is destroying the Russian state. If we look at the functions of the state, they are gradually transferred to the state companies: Now the Duma voted that Gazprom and Rosneft can have its own armies. These so-called state companies are run by Putin and his KGB-buddies - him being a sort of "capo di tutti capi."  And for those doing business with KGB Inc., I  remind them that the KGB shareholders are very active shareholders.

In Kasparov's view, the main goal of Russian foreign policy is to raise the price of oil, no matter what - that's why the tensions in the Middle East are so important to Putin:

Selling nuclear technology to Iran is good - you get money and create tensions - selling missiles to Hezbollah through Syria serves the same purpose. North Koreea causes trouble? Excellent! In Putin's view, everything that will raise the oil price is good. But oil money is the main sponsor of terrorism. If we look at a map of the world, most of the dictatorships are based on oil.

Although he admits that the current opposition parties stand no chance in even getting registered for the upcoming parliamentary elections, not to mention the presidential ones, Kasparov seems confident that the Putin regime will collapse before 2012.

 If the price of oil falls under 50 dollars a barrel, you don't have to be a rocket scientist to predict that the regime will fall. But even if the price of oil stays high, the regime will collapse. The problem with this regime is that the oil money disappears, you can't find it in Russian banks or investments. You can find it anywhere from Riga til London, but not in Russia. The Russian banking system is shaky, the infrastructure is old and rusty, from Soviet times, pipelines need investments badly, but nothing of this sort is being done. Inevitably, this will lead to a political crisis. Even if Putin puts his man in charge for four or less years, the balance will be disturbed and there will be massive fighting among the different groups. And the fear of the rich and powerful can be transformed into a dynamic energy which could topple the regime.

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The New European

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