Authoritarian policy and the restriction of legal statehood represent a growing problem for German companies. Such results were shown by the study, which was in the possession of Die Welt.
"The investment of foreign companies is the humus in which the economies of many developing countries have excelled in recent years. This is evident from the example of Turkey and especially China. To a large extent, they were won by Russia, Brazil and India. New jobs have been created, know-how has come to the country, people's living standards have improved, "Frank Stoker, the author of the publication.
However, some of these countries today seem to be putting an end to these results - above all Turkey and Russia. This is evidenced by the results of a study conducted by the Center for European Economic Studies (ZEW), commissioned by the Family Business Foundation.
"Turkey and Russia should take into account that they may lose their attractiveness for family companies in connection with growing fears about the legal statehood in these countries," says the chairman of the fund Rainer Kirchdorfer.
"The study is based on an extensive analysis of the conditions for investment in seven major developing countries, such as China, India, Brazil, Russia, South Africa, Turkey and Mexico. The analysis was carried out such criteria as the tax system, labor costs, productivity, infrastructure, regulatory mechanisms, financing conditions and the activities of various institutions. ) The results of the analysis were reduced to the so-called single index ".
As a result of the research it was found that many countries in recent years have taken a number of effective steps to attract foreign investors - including Russia and Turkey. Thus, according to the analysis, these countries are leading in terms of attractiveness of the tax system.
"Russia and Turkey are attracted by relatively liberal mechanisms of regulation in the economic sphere, inexpensive and skilled labor, as well as good infrastructure - these are all areas in which both Recep Tayyip Erdogan and Vladimir Putin succeeded in the early years of their rule, correcting mistakes their predecessors, "reads the article.
"Regarding the attractiveness of these two countries from the point of view of investments to date, Russia and Turkey are at the top of the list, with an emphasis on the word" for now, "the author emphasizes..
"The policy of both presidents," the journalist explains, "in recent years leads to the fact that they can lose this legacy".
In the case of Turkey, it is primarily about the behavior of the Turkish authorities and courts after the coup attempt in the summer of 2016, as well as the introduction of the presidential system of government scheduled for 2019.
The fears associated with Russia are much clearer: "such areas as property rights, control over corruption and the independence of the legal system".
"Weakness of state institutions declares itself stronger against the backdrop of the growing turnover of autocracy in recent years in the system of public administration," reads the study.
According to the authors of the study, China and India can benefit from these trends. "Asian states offer political stability and are ready (. ) cope with shortcomings through investments in education and infrastructure, "says Friedrich Heinemann, one of the experts at ZEW.
In addition, the article reads, both China and India demonstrate an understanding of the need for reforms in support of the economy.
Summarizing the results of the study, the author writes that experts point out, first of all, on such problems as "rampant corruption in South Africa and South America, distance from the EU and growing doubts related to the reliability of the legal system in Turkey, autocratic government style and course on foreign policy confrontation in the case of Russia ".