#34 - JRL 2008-76 - JRL Home
Russia Profile
April 14, 2008
Time to Decide
Today’s Foreign Policy Squabbles Will Quickly Fade If the Economy Worsens
By Alexander Arkhangelsky
There is a pattern as old as the world itself. When everything starts to go
well in Russia, the infighting begins. Instead of working for a better future,
those in power work to redistribute the wealth and power of the present. When
problems arise, the Russian policymakers shudder, strain, and begin to paddle
ferociously to stay afloat.
While the economic and political pillars of the community shook, Boris
Yeltsin maintained a system on the verge of collapse, building a new economy
while preparing for tomorrow. He did this in a time when the price of oil per
barrel was around $9. He was not afraid of freedom. Even in a precarious moment,
he still was able to spur the country forward, guiding a bucking horse along the
edge of a winding mountain road until the road flattened out and became
straight.
Then everything changed. The price of raw materials skyrocketed as the dollar
fell. Inflation diminished as the people calmed down and warmed up to the new
faces of power. The country was given a tremendous opportunity for a
breakthrough. Some things were accomplished. Terrorism was suppressed, state
institutions rebuilt, but too much energy was wasted on harsh relations with
insignificant neighbors, on fighting an orange revolution that would never come,
and on dividing up the coffers among a debased elite.
These facts are not explained by claims that our neighbors are acting
similarly, that the European bureaucrats are no better than ours. We complain
that they provoked, incited, pushed and meddled. They are no smarter than us,
and they may have started it, but that is exactly the game of politics as
President-elect Dmitry Medvedev recentlyy said to fool others. The politician’s
job again, in Medvedevv’s words is not to be fooled.
The fruits of this new politics were on display at the NATO Summit in
Bucharest. The West, trying to play Russia for a fool, took a tiny step toward
the ever-stubborn Moscow by slightly rebuffing Ukraine and Georgia a path to
their cherished NATO membership but only slightly and not forever, just for a
short time.
Then President Vladimir Putin, with the tone of a soldier at the end of his
tenure, nonchalantly explains that if Russia’s interests continue to be
considered, then, just maybe, public opinion will accept NATO’s existence and
will stop reacting so violently to NATO initiatives. He then agrees with U.S.
President George Bush on entry to the World Trade Organization and repealing the
Jackson-Vanik amendment. This isn’t exactly complete peace, nor total paradise,
but we can already witness a softening of tone.
Now, let’s turn from the long term to the short term and to the domestic
situation. As any curious person who watches the news knows, inflation spiked in
the first week of April though even withhout this jump it had been rising
steadily. As for the lazy and the uncurious, inflation didn’t cross their mind
though every day tthey visit shopping centers and quietly gasp.
Those who are not particularly concerned about an increase in the price of
eggs worry instead about the alarming line graphs, while those who do not
understand the graphs worry about the price tag. But this is not the end of the
matter. This is, I am almost afraid to say, just the beginning. Soon, gasoline
prices will skyrocket; then, in about two years, the value of the ruble will
tumble. When the Democrats gain power in 2009, there is no telling what their
policies will do to the dollar or the price of oil.
No matter how you try to control prices, no matter how you maneuver between
business and political interests, the choice is still inevitable: a free-market
economy or the laws of bureaucracy. If the market prevails prices will
skyrocket; if bureaucracy wins goods will disapppear. And prices will still
rise, although a bit later.
Let’s change our glasses again. Let us look beyond our beloved Russia. Are
the glasses rose-tinted? Of course not. It’s just that new patterns have started
working at a slow pace, a trial run. Soon they will start to accelerate.
As Russia’s economic situation becomes more tense, the knots in the
international sphere will begin to unravel, first the tiny ones, then bigger,
and then the huge ones. The last thing on our minds will be Georgia and Estonia,
and it would be a pity to waste any money fighting the orange threat from Kiev.
It’s not that we have surplus funds. Everything has already been accounted for.
It is like a computer infected with a virus; to keep it from overheating you
have to disconnect all the fancy auxiliary devices. Then you treat it with an
anti-virus.
If the economic winds really are changing, then that anti-virus may be a fall
in the price of oil which would demolish a system of reckless and irresponsible
balancing created and fine-tuned over the last eight years. In the conditions of
a deteriorating state of affairs, we will have to improve the management and
control models, cast off bureaucratic barnacles and deprive law-enforcement
bosses of their right to control everyone and everything through brute force
alone.
Total control of the media can only be achieved in prosperous times, when
information does not pose a threat to authority. The right to allow and forbid
increases the status of the ideological controllers. It turns them from
technological support people into the strategists of a sovereign democracy, all
the while having absolutely no relation to the flow of everyday life.
But as soon as real problems arise, including inside the ruling class, they
have to open up the sluices that are screwed shut and open the floodgates. The
pride of the controllers suffers, but the system becomes steadier. Like the
walls of a brick house, if the soil is reliable, then you can lay a rigid
foundation. But if the sand is shifting, then at least one wall has to be able
to shift as well. Otherwise, the house will start cracking at the seams.
This is a normal political response. But it could prove to be entirely
different. Instead of steady fluctuations, there could be unstable rigidity.
Instead of a virus altering the system, we could destroy the motherboard.
Instead of discarding dead weight, we might succumb to a panicked desire to fill
the basket to its brim. Instead of a straight and narrow road, we could leap off
the precipice. Which will we chose? We will see. If not this year, then the
next. If not in the next, then never. Either the situation will steadily
straighten out, or life will fall apart.
The time for ambiguity is gone. It is finally time to make a decision.
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