According to the Russia-based Compulog Computer
Consultants, quoted by USA Today, most communist
states maintained large-scale hacking operations involving
not only the security services, but also the computers and
electrical engineering departments of universities and
prestigious research institutes. American bans on the sale
of certain software applications - such as computer-aided
design and encryption - fostered the emergence of an
officially-sanctioned subculture of crackers and pirates.
In the last few years, Russian organized crime has evolved
to incorporate computer fraud, identity theft, piracy of
software and digital media and other related offenses. The
Russian mafia employs programmers and graduates of
computer sciences. The British Daily Express reported in
September that - probably Russian - hackers broke into
Microsoft's computer network and absconded with
invaluable source codes. These are believed to be now
also in the possession of the FSB, the chief successor to
Russia's notorious KGB.
The Business Software Alliance, a United States based
trade group, claims that 87-92 percent of all business
computer programs used in Russia are bootlegged - a
piracy rate second only to China's. Microsoft sells c. $80-
100 million a year in the Russian Federation and the CIS.
Had it not been for piracy, its revenues could have
climbed well above the $1 billion mark.
According to Moscow Times and RosBalt, Microsoft's
sales in Russia almost doubled in the last 12 months and it
has decided to expand into the regions outlying Moscow
and into Kazakhstan and Ukraine. Yet, the company's
attempts to stamp out illicit copying in the last years of
Russian president Boris Yeltsin's regime - including a
much publicized visit by Bill Gates and a series of
televised raids on disk stamping factories - floundered and
yielded a wave of xenophobic indignation.
Still, central and eastern Europe is a natural growth
market for the likes of Microsoft. The region is awash
with highly qualified, talented, and - by Western measure
- sinfully cheap experts. Purchasing power has increased
precipitously in countries like the Czech Republic,
Hungary, Slovakia, Slovenia, parts of Russia, and Croatia.
Both governments and businesses are at the initial stages
of investing in information technology infrastructure.
Technological leapfrogging rendered certain countries
here more advanced than the West in terms of broadband
and wireless networks.
XLV. NGOs - The Self-Appointed Altruists
Their arrival portends rising local prices and a culture
shock. Many of them live in plush apartments, or five star
hotels, drive SUV's, sport $3000 laptops and PDA's. They
earn a two figure multiple of the local average wage. They
are busybodies, preachers, critics, do-gooders, and
professional altruists.
Always self-appointed, they answer to no constituency.
Public-domain text, read in full here on John Shaqi.
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